SINGAPORE: Chipmaker Chartered Semiconductor Manufacturing has reported a 76 per cent drop in first quarter earnings to US$5.3 million.
That works out to 1 cent per diluted American Depositary Share.
Earnings were hit by a slowdown in demand and inventory overhang in the industry.
Going forward, the chipmaker expects second-quarter revenue to be flat due partly to lower shipments of 90 nanometer chips.
However, it is more upbeat about earnings in the second half.
"The computer sector is going to be down. Our leading customer there who is using our 90 nanometre technology, their business [is] weaker. As a result, we're seeing flattish revenue looking into the second quarter," said Chia Song Hwee, Chief Executive, Chartered Semiconductor Manufacturing.
"Getting into the second half of the year, which is historically and typically a stronger quarter for our type of business... chip companies are preparing their products to be incorporated into many of the consumer electronics that will go on sale during the Christmas holiday season.
"Barring any unforeseen circumstances, we should expect to see stronger demand in the second half of the year, which will be helpful of our business."
Chartered's CEO Chia Song Hwee has also dismissed speculation that Chartered may be a takeover target.
Market talk has it that Chartered could be taken over after investment company Temasek Holdings made an offer for the chip tester and assembler, STATS Chippac.
Mr Chia also revealed a fabrication plant may be in the pipeline for mass production of new 45 nanometer chips.
He did not give a timeline for when the plant may be built, only saying that production on these chips may begin in mid-2008.
That works out to 1 cent per diluted American Depositary Share.
Earnings were hit by a slowdown in demand and inventory overhang in the industry.
Going forward, the chipmaker expects second-quarter revenue to be flat due partly to lower shipments of 90 nanometer chips.
However, it is more upbeat about earnings in the second half.
"The computer sector is going to be down. Our leading customer there who is using our 90 nanometre technology, their business [is] weaker. As a result, we're seeing flattish revenue looking into the second quarter," said Chia Song Hwee, Chief Executive, Chartered Semiconductor Manufacturing.
"Getting into the second half of the year, which is historically and typically a stronger quarter for our type of business... chip companies are preparing their products to be incorporated into many of the consumer electronics that will go on sale during the Christmas holiday season.
"Barring any unforeseen circumstances, we should expect to see stronger demand in the second half of the year, which will be helpful of our business."
Chartered's CEO Chia Song Hwee has also dismissed speculation that Chartered may be a takeover target.
Market talk has it that Chartered could be taken over after investment company Temasek Holdings made an offer for the chip tester and assembler, STATS Chippac.
Mr Chia also revealed a fabrication plant may be in the pipeline for mass production of new 45 nanometer chips.
He did not give a timeline for when the plant may be built, only saying that production on these chips may begin in mid-2008.
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