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CHARTERED DETAILS PLANS FOR SINGAPORE'S FIRST 300mm
FACILITY
New
fab scheduled to open in 2002 at an estimated cost of
$3.5 billion
MILPITAS, Calif. and SINGAPORE - FEBRUARY 14, 2001
- Chartered Semiconductor Manufacturing (Nasdaq: CHRT
and SGX-ST: Chartered), one of the world's top three
silicon foundries, today detailed its plans for Singapore's
first 300mm facility. Pilot production on Fab 7, Chartered's
largest wafer fabrication project, is scheduled to begin
in 2002.
The Company, which has five fabs in Singapore, has revised
its original plans to ramp Fab 7 by foregoing an interim
step to bring it up as a 200mm facility. Instead, Chartered
will accelerate the cost and utilization benefits of
300mm wafers qualified on Chartered's most advanced
processes. To meet its customers' 200mm demands, Chartered
will maximize its existing capacity, including the scheduled
expansion of the operational capabilities of Fab 6 first
brought online in 2000.
The more advanced configuration of Fab 7, now expected
to cost $3.5 billion, is an important part of Chartered's
plan to double its capacity in the next three years.
It also reflects a significant portion of the Company's
2001 plans for capital equipment spending, up by 30
percent from 2000.
The new 300mm fab will be fitted with state-of-the-art
manufacturing technology, optimized for volume production
of Chartered's leading-edge process technologies down
to 0.10-micron. The fab's 170,000 square-feet of clean-room
space will be capable of producing in excess of 30,000
300mm wafers per month in full production.
"Clearly, 300mm is the manufacturing option of choice
for the future, and we are excited to be moving forward
with our strategy for capitalizing on the 300mm market
opportunity forecasted to ramp up in mid-2002," said
John Docherty, senior vice president, manufacturing
operations and technology at Chartered. "Despite short-term
uncertainty around the softening in end-market demand,
we feel it is important to invest prudently now for
the long-term needs of our customers, while retaining
our flexibility to respond to their capacity requirement
for other production technologies."
Docherty added, "Our decision to move forward on a 300mm
strategy for Fab 7 will result in a factory with a longer
life-span and will substantially increase the value
to our customers over an expanded period of time. We
remain confident in our long-term vision and our business
fundamentals, and we believe semiconductor inventory
corrections that are occurring in the first half of
2001 will pass by the time our Fab 7 is in production
mode next year."
Fab 7 is an integral component in Chartered's "communications-smart"
strategy of targeting high-growth end markets in telecommunications,
wireless and other connectivity-related applications.
The Company receives the highest percentage of its revenues
from this segment, and focuses its R&D and product engineering
efforts toward providing optimized silicon manufacturing
solutions for customers in these markets.
About Chartered
Chartered Semiconductor Manufacturing is one of the
world's top three silicon foundries. The Company's business
model is distinguished by its strategy to build trusted
long-term relationships, where manufacturing is part
of a larger customer-service focus that includes joint
development and implementation of new process technologies
supporting novel applications within the broad communications
market. Chartered operates five semiconductor fabrication
facilities at its Singapore headquarters, with a sixth
fab under construction.
A Company with both global presence and perspective,
Chartered is traded on both the Nasdaq Stock Market
in the United States (Nasdaq: CHRT) and on the Singapore
Exchange Securities Trading Limited in Singapore (SGX-ST:
CHARTERED). The Company reported 2000 revenues of over
US$1.1 billion. More than 4,300 Chartered employees
are based at 11 locations around the world. Information
about Chartered Semiconductor Manufacturing can be found
at www.charteredsemi.com
Safe Harbor Statement under the provisions of
the United States Private Securities Litigation Reform
This news release contains forward-looking statements,
as defined in the safe harbor provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements, including without limitation,
statements relating to our plans for Fab 7 and expected
pilot production date; our long term outlook and near
term outlook for the year 2001 and beyond; our capital
expenditures, production capacity plans; the outlook
for longer-term growth in the foundry services market;
and the appropriateness of our business model and strategy.
These statements reflect our current views and are subject
to certain risks and uncertainties, which could cause
actual results to differ materially from historical
results or those anticipated. Among the factors that
could cause actual results to differ materially are:
the successful implementation of our partnership, technology
and supply alliances; unforeseen delays or interruptions
in our plans for our fabrication facilities, including
Fab 7; the performance level of our fabrication facilities;
changes in market outlook and trends, specifically in
the foundry services and communications segments; economic
conditions in the geographical locations where our customers
and their markets are located; customer demands; availability
of materials, equipment, manpower and timely regulatory
approvals, availability of financings and terms thereof;
continued success in technological advances. Although
we believe the expectations reflected in such forward-looking
statements are based upon reasonable assumptions, we
can give no assurance that our expectations will be
attained. In addition to the foregoing factors, a description
of certain other risks and uncertainties which could
cause actual results to differ materially can be found
in the section captioned "Risk Factors" in our Annual
Report on Form 20-F filed with the U.S. Securities and
Exchange Commission. You are cautioned not to place
undue reliance on these forward-looking statements,
which are based on the current view of management on
future events. We undertake no obligation to publicly
update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
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