Chartered's woes continue

Chartered Semiconductor Manu-facturing Ltd (特許半導體), the world's No. 3 provider of made-to-order chips, had its ninth-straight quarterly loss and said it's customers don't expect a rebound until later this year.

The net loss contracted to US$75.7 million, or US$0.30 an American depositary share, from a record US$128.4 million, or US$0.81, a year earlier, the company said.

Singapore-based Chartered has lost US$876.7 million since the start of 2001 on falling prices and sluggish chip-industry sales, which rose less than 2 percent last year.

Excess manufacturing capacity at Chartered and rivals such as Taiwan Semiconductor Manufacturing Co (台積電) may keep the company unprofitable until at least the end of next year, some analysts said.

"It's headed in the right direction but they've got quite a ways to go still," said Mark FitzGerald, an analyst with Banc of America Securities, who rates the shares "neutral."

"Looking at global chip sales, they're still weak," he said.

The company's sales in the first quarter rose 23 percent to US$103.8 million from US$84.4 million as shipments and factory usage increased.

Chartered Semiconductor sha-res, which peaked at US$16.03 in March 2000, have fallen 5.6 percent this year. Agencies of Singapore's government own about 60 percent of the company.

"Most of our customers remain cautious in their outlook, and don't expect significant growth to resume in their end markets until later this year," Chief Financial Officer George Thomas said in a statement. "Global economic weakness continues to pace the semiconductor market recovery."

The company said in February that it will shut its oldest chip factory and focus on making more advanced chips.

It also has struck a venture with International Business Machines Corp to develop techniques for making a new breed of chips that it hopes will boost profits.

The company's most advanced chips accounted for 43 percent of revenue in the first-quarter, Chartered said. Prices on average fell 9.5 percent and will fall again this quarter, it said.

Chartered forecast sales in the current quarter will rise 10 percent to 15 percent from the first quarter to about US$117 million, while its loss will widen to about US$102 million, or US$0.41 per American depositary share.