As liquidation of panel-use driver ICs has been slower than expected, order visibility for the chips is still limited, according to Vanguard International Semiconductor (VIS) chairman Chang Ching-chu.

But Chang reiterated that VIS' guidance for the fourth quarter will remain unchanged.

For 2011, VIS intends to focus on foundry services for large-size panel-use driver ICs and power management chips, Chang noted. The company's production lines for memory chips have all been converted into making logic ICs, said Chang, adding that monthly capacity at its two 8-inch fabs is set to reach 116,000 wafers in the fourth quarter from 113,000 at the end of October.

VIS' capex for 2010 is estimated at NT$3.5 billion (US$117 million), mainly used to expand capacity for 0.20- and 0.16-micron processes, Chang said. In the third quarter, 0.35- and 0.50-micron remained its major production nodes.

VIS earlier predicted shipments would decline 30% sequentially in the fourth quarter, with utilization rates falling to 64-66%. It did not give a revenue estimate.

Market watchers expect the specialty IC foundry to see revenues drop 27-30% sequentially in the fourth quarter.