- Chartered announced the extension of its joint development efforts with IBM to include 22nm bulk CMOS technology. This collaborative development program has enabled Chartered to provide foundry access to a leading technology roadmap, spanning five major generations of advanced process technology, including 90nm, 65nm, 45nm, 32nm and 22nm logic processes.
- On March 31, 2008, Chartered completed the acquisition of Hitachi Semiconductor Singapore Pte Ltd, which owns and operates an eight-inch wafer fabrication facility located in Singapore, for a total consideration of approximately $240 million.
- Chartered announced the signing of an agreement for a $190 million term loan facility from Societe Generale, guaranteed by Atradius Dutch State Business NV. The loan is to support the Phase 2 ramp of Fab 7.
Review and Outlook
“We are guiding for double-digit revenue growth into the second quarter mainly due to incremental revenues from the recently acquired fab, Fab 3E, and higher revenues at the leading-edge technologies, resulting from the ramp of existing as well as new 65nm customer programs,” said Thomas.
“Based on current demand levels from our customers, we are expecting revenues at the Chartered level and revenues including our share of SMP to be up approximately 17 percent and 16 percent respectively in the second quarter, compared to first quarter 2008. Excluding revenues from Fab 3E, revenues at Chartered level and revenues including our share of SMP are expected to increase approximately six percent. Revenues from 0.13-micron and below technologies, including those from 65nm, are expected to account for approximately 47 percent of our total business base revenues. Revenues from 65nm alone are expected to grow around 33 percent sequentially and represent approximately 11 percent of our total business base revenues. After comprehending approximately 17 percent sequential increase in capacity, primarily due to the acquisition of Fab 3E, we expect utilization in the second quarter to be approximately 88 percent. With this outlook, we expect to post a net income of approximately $6 million for the second quarter.”
The outlook for second quarter 2008 is as follows:
| 1Q 2008 |
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2Q 2008 Guidance | ||||||
| Actual | Midpoint and range | Sequential change | ||||||
| Revenues | $388.2M |
$455M, +/- $6M (b)
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Up 16% to Up 19% | |||||
| Revenues including Chartered ’ s share of SMP | $414.1M | $480M, +/- $7M (b) | Up 14% to Up 18% | |||||
| ASP (c) | $892 | $861, +/- $20 | Down 1% to Down 6% | |||||
| ASP including Chartered ’ s share of SMP (c) | $885 | $857, +/- $25 | Flat to Down 6% | |||||
| Utilization | 86% | 88%, +/- 3% (d) | - | |||||
| Gross profit | $64.6M | $81M, +/- $6M | - | |||||
| Net income | $2.4M | $6M, +/- $5M | - | |||||
| Basic earnings (loss) per ADS (e) | ($0.00) | $0.01, +/- $0.02 | - | |||||
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(b) For 2Q 2008, revenue guidance includes approximately $42 million from Fab 3E.
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(c) Eight-inch equivalent wafers. Excluding Fab 3E, mid-point of ASP and ASP including Chartered ’ s share of SMP would be approximately 2 percent higher.
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(d) For 2Q 2008, utilization guidance comprehends Fab 3E shipments and capacity. Capacity for Fab 3E is expected to be 74,300 eight-inch wafers for the quarter.
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(e) 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 $2.5 million in second quarter 2008. |
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