A fire erupted in the machine room situated atop the roof of the VIS (Vanguard International Semiconductor) Wafer 3 facility, located on Changrong Road in the Luzhu District of Taoyuan City. In the evening of the incident, all 200-plus employees on duty were swiftly and safely evacuated, with no reports of injuries or fatalities. Initial evaluations suggest that the fire did not inflict significant harm on the core production infrastructure, and the majority of production lines have since recommenced operations. As a pivotal global hub for 8-inch wafer foundry services, the plant is currently operating at a 90% utilization rate, with projections indicating a further uptick in the fourth quarter. Both wafer shipments and average selling prices of products are anticipated to rise in the third quarter. Company officials disclosed that wafer foundry prices will undergo adjustments in 2027, influenced by raw material costs and the interplay of supply and demand, with increases set to be at least on par with those seen in 2026. Discussions regarding the new annual pricing structure are currently in progress with major clients, and certain long-standing partners have already been informed of the impending price changes. At present, the 8-inch wafer foundry capacity is fully booked, with global order lead times stretching beyond 12 weeks. Industry experts posit that, while the losses stemming from the fire are contained, the event may amplify client anxieties regarding the stability of the supply chain, potentially leading to an uptick in pricing for foundry services utilizing mature manufacturing processes.
