Vanguard International Semiconductor (5347) Q1 2026 earnings summary

Executive summary

• Net revenue for 1Q26 was NT$12,532 million, nearly flat sequentially and up 4.9% year-over-year.

• Net income attributable to shareholders reached NT$2,246 million, up 28.5% sequentially but down 6.9% year-over-year.

• Diluted EPS was NT$1.18, with basic EPS at NT$1.22.

• Total wafers shipped increased 2.6% sequentially and 5.8% year-over-year to 642K pcs.

• The company issued its first overseas convertible bonds and continued significant capital investments in Singapore.

Financial highlights

• Gross profit margin improved to 29.3% in 1Q26 from 27.5% in 4Q25, but down from 30.1% in 1Q25.

• Operating income was NT$2,087 million, up 15.5% sequentially but down 6.8% year-over-year.

• Cash and financial instruments increased to NT$46,537 million from NT$41,716 million in 4Q25.

• Equity attributable to shareholders rose to NT$68,416 million from NT$63,877 million in 4Q25.

• Cash and cash equivalents at quarter-end were NT$39,913 million.

Outlook and guidance

• 1Q26 wafer shipments grew 3% QoQ, exceeding guidance.

• Blended ASP declined 4% QoQ, in line with guidance.

• Gross profit margin at 29.3% was within the guided range of 28%–30%.

• The company continues to invest in capacity expansion, particularly in Singapore, and expects ongoing capital expenditures.

• The board approved further issuance of restricted shares and increased the technology licensing budget post-quarter.