Vanguard International Semiconductor (VIS) plans to increase its capital by 22% to NT$1.26 billion (US$41.54 million) for capacity ramps, according to the wafer foundry house.

The capital expansion project comes after the company signed a deal to acquire an 8-inch fab and related equipment from Sumpro Electronic, a subsidiary of Nanya Technology, for NT$2.18 billion. The acquisition is expected to complete on July 1.

Along with the acquisition deal, VIS will also take on over 800 Sumpro employees.

The planned acquisition offers an opportunity for VIS to expand its production capacity to assure growth momentum, said VIS chairman Chang Ching-chu.

Sumpro's 8-inch fab, which has a production capacity of 20,000 wafers, is currently running at 50-60% of its capacity.

VIS will optimize its newly added capital to modify as well as upgrade production lines at Sumpro's 8-inch fab, aiming to roll out an additional 400,000 wafers a year to its current production, VIS said.

Wafer production at VIS has been tight since the first quarter of 2013 due to increasing orders for LCD driver and power management (PWM) ICs, according to industry sources.

By: DocMemory
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