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Dear Shareholders:
The year 2001 saw a declining global economy, slowing semiconductor
industry, and continued record lows in DRAM prices. Vanguard International
Semiconductor Corporation (VIS) weathered a difficult year under such
adverse conditions. Total 8-inch wafer output for the year was 346,000
pieces, down 67,000 pieces or 16% from the same period in the previous
year. Total revenues for 2001 amounted to NT$ 9.1 billion, with an
after-tax loss of NT$ 8.69 billion and a loss of NT$ 3.9 per share.
ACCELERATING CONVERSION AND SEIZING OPPORTUNITIES
Vanguard has responded to the difficult economic climate by minimizing
its losses through cost-cutting and lowering capital expenditures.
Nonetheless, VIS has continued to accelerate its conversion to a specialized
foundry company, not only actively exploring new foundry processes
technology for multiple generations of logic and memory boards, but
also carrying out organizational reengineering, the development of
specialty wafer technologies, and other strategies. These actions
further strengthen VIS's competitive position in the Specialty IC
Foundry field, allowing us to seize opportunities to create new business
fronts.
TECHNOLOGICAL ADVANCEMENT
To augment its competitive advantages, VIS has achieved a number
of important technological advances in the past year. Apart from successfully
enabling logic foundry production at the 0.25 um level, VIS has developed
0.5 um/0.35 um CMOS Image Sensor technology as well as the LCD Driver
IC High Voltage technology. In addition, VIS has successfully put
into mass production 0.18 um 256Mb DDR DRAM, as well as worked with
its clients to develop high end process technology for 0.18 um flash
memory and low power 1T-SRAM.
Looking ahead, VIS will continue to develop advanced, distinctive
and specialized IC foundry technologies, offering its clients the
optimal level of customized service through ever more complete chip
production technologies.
FUTURE PROSPECTS
VIS will continue its conversion to a specialized foundry company,
helping its clients raise their global competitiveness through an
increasingly wide array of technologies and services. VIS will continue
to enhance its profitability, creating win-win partnerships with its
clients, and providing VIS shareholders and its dedicated employees
with substantial levels of return.
In closing, on behalf of VIS, we would like to express our deepest
gratitude to all of our clients, shareholders, and employees for your
continuing support.
| Chairman |
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| President |
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