Growth forecast:
A service of Semiconductor Business News, CMP Media Inc.
Story updated 8 a.m. EDT/5 a.m. PDT, 9/10/98
Chartered's CEO sees 20% growth in foundry's revenues this year
By Will Wade
SANTA CLARA, Calif.--Singapore's Chartered Semiconductor Manufacturing
Pte. Ltd. will see silicon foundry revenues increase by 20% this year, according
to the company's new president and CEO, Barry Waite.
Speaking at a briefing here for analysts and the press, Waite surprised industry
observers with his bullish forecast in light of the difficult times being faced by most
semiconductor manufacturers. Some analysts said if Chartered is able to hit that
growth rate, it suggests a potential shakeup in the rankings of silicon foundries,
which as a group will most likely post flat results this year at best.
Waite, a former chip executive from Motorola Inc., said Chartered's strength this
year is based on business with new and existing fabless customers in North
America, as well as an expanding presence in Europe. And, although the initial
numbers are small, Waite said he was encouraged about the prospects of
penetrating the Japanese semiconductor market.
Compared to what was originally expected, "our numbers are weak this year," he
said during the briefing, which was held on Wednesday in conjunction with
Chartered's annual technology forum for new and potential foundry customers.
"We were expecting to bring in a lot more than 20%," he added.
The briefing was Waite's first major public strategy disclosure since he took the
reins at the Singapore-based foundry in May (see May 5 story ). Waite revealed that Chartered plans to bring a new fab online within the next two years, which will probably use 8-inch wafers.
Surprised by Waite's optimistic growth projection was Jim Hines, principal
analyst for semiconductor contract manufacturing at Dataquest, based in San
Jose. "That number is higher than I had expected," he said.
With the foundry industry expected to stay flat this year, Hines noted that a 20%
gain would likely mean a significant shift in market share among the top-tier
foundries, which would include rivals Taiwan Semiconductor Manufacturing Co.
Ltd. (TSMC) and United Microelectronics Corp. (UMC). However, Hines
added that Chartered does not yet offer 0.25-micron capability and therefore is
not able to compete for that emerging business.
Dataquest estimates show Chartered in third place among the pure-play silicon
foundries, close behind No. 2 UMC and far behind top-ranked TSMC. Industry
estimates collected have placed Chartered's 1997 revenues at about $405
million, which was an increase of 13% over foundry sales of $360 million.
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