Chartered plans $2.1 billion fab to help double foundry output by 2001
Semiconductor Business News
(01/20/00, 06:49:59 PM EDT)
SINGAPORE -- Chartered Semiconductor Manufacturing Pte. Ltd. here announced plans to double its silicon foundry capacity to 1.4 million eight-inch equivalent wafers a year by 2001.
Chartered's expansion plans include a new $2.1 billion wafer fab in Singapore, which will have the capacity to process 60,000 eight-inch wafers a month when fully equipped. The new plant will use 0.15-micron process technologies, and it's expected to begin production in the middle of 2001.
The Singapore silicon foundry disclosed its expansion plans while reporting it had returned to profitability in the fourth quarter of 1999. Chartered's net revenues grew 104% to $216.2 million in the fourth quarter compared to $106.0 million during the same period in 1998. The foundry's net income came in at $22.1 million vs. a net loss of $77.2 million in the fourth quarter of 1998.
For the entire year, Chartered posted a net loss of $32.6 million on revenues of $694.3 million--a vast improvement from the company's net loss of $198.8 million on sales of $422.6 million in 1998.
Chartered, the world's third largest pure-play chip foundry, faces stiff competition from its rivals in Taiwan as demand surges for third-party manufacturing services. While Chartered struggled most of 1999 with losses, Taiwan Semiconductor Manufacturing Co. (TSMC) and United Microelectronics Corp. (UMC) racked up strong gains and began expanding their wafer-processing capacity last summer.
UMC expects to drive up its total wafer-processing capacity to 2.4 million eight-inch equivalent wafers in 2000 after reorganizing itself for stronger growth (see Jan. 10 story). Meanwhile, TSMC--the world's largest pure-play foundry--says it will have the capacity to process 3.4 million wafers in 2000 after acquiring Worldwide Semiconductor Manufacturing Corp. (WSMC) and full ownership of a joint-venture fab from Acer Group (see Jan. 7 story).
Chartered is now attempting to keep up in the foundry race to add production capacity. The Singapore company said it will increase capital spending by 102% to $1.4 billion in 2000 from last year's expenditures. In addition to the new $2.1 billion fab, Chartered said it will expand production in its existing Singapore wafer fabs. In 2000, the company expects to have the capacity to process 970,000 eight-inch equivalent wafers. Chartered said it shipped 695,300 wafers to foundry customers in 1999, an increase of 58% from 439,700 in 1998.
"We will continue to invest in technology, capacity, and the right skills to enhance Chartered's role as a long-term, premier pure-play foundry," declared Barry Waite, president and CEO of Chartered.
In 1999, Chartered's revenue growth was strongest among European customers. Including revenues from joint ventures, Chartered's European revenues reached $95.2 million in 1999 from just $6.9 million in 1998.
Chartered's revenues from North American customers totaled $484.5 million in 1999, an increase of 82.6% from $265.4 million in 1998. Revenues from Japanese customers grew 306% to $20.3 million from $5.0 million in 1998. However, Chartered's revenues from Asia-Pacific customers slipped 25.9% to $107.6 million from $145.3 million in 1998.
During the fourth quarter, Chartered said average selling prices for processed wafers increased 37% to $1,131 from $825 in the fourth quarter 1998.
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