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Chartered Semiconductor Manufacturing To Continue Into 45nm Manufacturing Despite Sad Business Outlook
Singapore Chipmaker Releases Second Quarter Results This Week. Compared to the first quarter, revenues grew by 18%, and capacity utilization was 88%. However, in the third quarter, revenue growth is expected to decrease to a modest 4%, and resource utilization will decline to 84%.
Profit for the second quarter was 43.3 million. Doll., but in the third quarter of the year this indicator will go into the negative part of the scale – a loss of about 29 million is expected. Doll. The reason for the deteriorating business outlook, according to the leadership of Chartered, lies in the rising cost of energy.
Meanwhile, Chartered announced its intention to invest in addition to the amount previously planned for this year, another 160 million. Doll. to deploy a 45-nm process technology. The company expects to start mass production according to the new standards next year. Of course, the additional capex required to keep up with the industry will exacerbate the company’s profitability issue. However, postponing the development of 45nm production is even more unprofitable, since only a transition to finer standards can lead to an improvement in the unit cost.
Now production at 130 and 65 nm standards provides 55% of the company’s revenue.
Chartered shipped 548,500 wafers with chips to customers in just the quarter, up 43.7% from a year ago. It is noteworthy that during the same time, the share of income provided by orders from companies that produce microcircuits for computers decreased from 30 to 17%. In other words, orders for chips for communication systems and consumer electronics began to play a big role.
Sources: Chartered Semiconductor Manufacturing, EE Times