Breakdown by Technology (micron)
Revenues including Chartered's share of SMP (Percentage of Total)
2Q 2006 3Q 2006 4Q 2006 1Q 2007 2Q 2007
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0.065 and below - - - - 6%
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Up to 0.09 22% 29% 34% 27% 11%
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Up to 0.13 28% 25% 26% 30% 33%
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Up to 0.15 1% 1% 1% 1% 1%
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Up to 0.18 14% 13% 12% 11% 14%
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Up to 0.25 9% 8% 7% 8% 11%
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Up to 0.35 15% 15% 12% 14% 14%
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Above 0.35 11% 9% 8% 9% 10%
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Total 100% 100% 100% 100% 100%
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Recent Highlights
-- Chartered announced the signing of an agreement for a $610 million term loan facility from J.P. Morgan, guaranteed by the Export-Import Bank of the United States. The loan is to support the Phase 2 ramp of Fab 7.
-- Chartered, IBM, Samsung, Infineon, and Freescale announced the signing of a series of semiconductor process development and manufacturing agreements. The joint development agreements between these companies now include 32nm bulk CMOS process technologies and joint development of process design kits to support that technology.
-- Chartered, IBM and Samsung announced the availability of design-for-manufacturing (DFM) technology models, data files and design kits from leading EDA and DFM companies, supporting Common Platform technology at 45nm.
-- Chartered and Tezzaron Semiconductor, a specialist in high-speed memory solutions and three-dimensional wafer stacking processes, announced that Chartered will begin ramp production of Tezzaron's unique ultra high speed memory chip.
Review and Outlook
"Based on current demand levels from our customers, we are expecting overall wafer shipments to grow approximately 10 percent sequentially and translate to a utilization rate of approximately 84 percent for the third quarter, an improvement of five percentage points over the previous quarter. However, primarily as a result of anticipated lower shipments of 90nm wafers to the computer sector, we expect Chartered revenues and revenues including our share of SMP to grow approximately four percent sequentially. Revenues from 0.13-micron and below technologies, including those from 65nm, are expected to account for approximately 48 percent of our total business base revenues. Revenues from 65nm alone are expected to grow approximately 70 percent sequentially and represent approximately 10 percent of our total business base revenues. Based on this outlook and after comprehending the stepped up R&D expenditure that needs to be incurred to bring up 45nm process technology to qualification phase, we expect to approximately break even at the bottom line for the third quarter," said Thomas.
The outlook for third quarter 2007 is as follows:
2Q 2007 3Q 2007 Guidance
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Actual Midpoint and range Sequential change
----------------------- -------- ------------------ ------------------
Revenues $324.3M $338M, +/- $6M Up 2% to Up 6%
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Revenues including
Chartered's share of
SMP $353.0M $366M, +/- $7M Up 2% to Up 6%
----------------------- -------- ------------------ ------------------
ASP (a) $908 $866, +/- $20 Down 2% to Down 7%
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ASP including
Chartered's share of
SMP (a) $896 $858, +/- $25 Down 1% to Down 7%
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Utilization 79% 84%, +/- 3% -
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Gross profit (loss) $59.9M $64M, +/- $6M -
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Net income (loss) (b) ($24.7M) $0M, +/- $5M -
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Basic earnings (loss)
per ADS (c) ($0.11) ($0.01), +/- $0.02 -
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(a) Eight-inch equivalent wafers.
(b) Net income includes the negative profit impact from losses attributable to minority interest, which was $1.9 million in second quarter 2007, and is projected to be nil in third quarter 2007.
(c) Basic earnings (loss) per ADS is computed by deducting from net income or adding to net (loss) the accretion to redemption value of the convertible redeemable preference shares, projected to be approximately $2.4 million in third quarter 2007.
CEO Closing Comments
