Taipei, April 29 (CNA) Contract chipmaker Vanguard International Semiconductor Corp. said Wednesday that it has agreed to purchase an 8-inch semiconductor fab in Hsinchu Science Park for NT$905 million (US$32.5 million).
In a statement, the company said the acquisition of the L3B factory site from industry peer AU Optronics will be completed on Jan. 1, 2022, and help it to meet rising client demand.
After the purchase, Vanguard will operate a total of five factories, including two others in Hsinchu Science Park, one in Taoyuan and one in Singapore that it acquired in 2019.
Pending the installation of additional manufacturing equipment, the company said, it will be able to produce around 40,000 8-inch chips per month at the factory.
AU Optronics, which acquired the plant in 1999, said the sale would bring in an estimated NT$703 million in profits, while also increasing the efficiency of its operations.
Vanguard was founded in 1994 by a consortium of investors led by Taiwan Semiconductor Manufacturing Company (TSMC), with which it has continued to work closely as a subcontractor.
TSMC controlled a 28.32 percent stake in the company as of the end of last year, followed by the Executive Yuan's National Development Fund at 16.71 percent, according to Vanguard's most recent financial statements.
