Vicor Raises Fab 1 Capacity to $1.5B, Plans Gen5 VPD Ramp and Licensing Push
Vicor expects its lead customer’s transition to Gen5 VPD solutions to begin ramping before year-end in the second half of this year. Fab 1 capacity is now projected at a $1.5 billion annual run rate after process upgrades and a second interconnect line due in Q3/Q4, while licensing is targeted as a high-margin growth driver.
1. Generational Transition to Gen5 VPD Solutions
Vicor plans to enable its lead customer’s shift from Gen4 to Gen5 VPD solutions in the second half of this year, with volume ramp expected before year-end. Despite ongoing capacity expansions, the company anticipates sustained constraints that will allow it to be selective in strategic customer engagements and design wins.
2. Fab 1 Capacity Expansion Plans
Initial Fab 1 capacity was earmarked at roughly $1 billion per year, but process optimizations and redeployment of certain steps to a nearby facility now support at least a $1.5 billion annual run rate. To bridge capacity gaps before a second fab arrives, Vicor is installing a second interconnect line in Q3/Q4 and exploring open sourcing of its second-gen VPD technology to meet density demands.
3. Licensing Business Growth Outlook
Vicor is investing heavily in its licensing practice, targeting OEMs and hyperscalers as licensees for its VPD technology. Management believes licensing will become a significant, high-margin portion of revenue and is confident it can grow toward representing 50% of product revenue over time.