SINGAPORE -- Citing the continued downturn in the silicon foundry business, Singapore's Chartered Semiconductor Manufacturing Pte. Ltd. here today reduced its quarterly forecast and noted that its wafer-fab utilization rate will fall to the low 30% range.
But the silicon foundry provider said that it may have hit the bottom, as it predicts a possible upturn in the third and fourth quarters of 2001.
Chartered projects that its sales for the second quarter will be down approximately 48% from the first quarter of 2001. This compares to prior guidance of a 25% decline.
The company will record a loss in the range of $0.76 to $0.78 per American Depositary Share (ADS). This compares to prior guidance loss of $0.50 to US$0.52 per ADS.
In the first quarter of this year, it reported a loss of $30.9 million on sales of $206.7 million. This compares to a profit of $37.8 million on sales of $238.4 million in the first quarter of 2000.
And surprisingly, the company's average fab utilization rate is expected to be in the "low 30%" range during the second quarter. In the first quarter of this year, its fab utilization rate slipped to the 40% range.
"Given the current turbulent market environment, it is difficult to predict revenue trends in the coming quarters for both the industry and Chartered," said Barry Waite, president and CEO.
"Our belief continues to be that based on historical patterns and on the severity of the decline seen in the first two quarters of 2001, Chartered's revenues will increase sequentially in both the third quarter and the fourth quarter," he said.
