CHARTERED RE-SIZES WORKFORCE IN LINE WITH CURRENT OUTLOOK
SINGAPORE - October 25, 2002 - Chartered Semiconductor Manufacturing (Nasdaq: CHRT and SGX-ST: Chartered) today
announced it is reducing its worldwide workforce by approximately 300 people, or about 7 percent of its total
employment. This action is being taken as result of a reassessment of the pace of recovery in the global
semiconductor industry.
Approximately 60 percent of the affected employees are manufacturing operators in Chartered's Singapore fabs. The
balance of the affected employees are primarily operations, support and administrative staff, whose positions
are being consolidated or eliminated. Approximately 275 of the affected employees are based in Singapore, and
the rest are located at Chartered sites around the world.
"This is an unfortunate, but necessary and prudent business decision," said Chia Song Hwee, president and
CEO of Chartered. "We felt it was essential to act in the most fair and compassionate way possible to our
affected employees, with a compensation package that includes career transition assistance, job counseling
and other elements."
Chartered expects to incur a one-time charge of approximately $5 million dollars in the fourth quarter
associated with the workforce reduction. Annual savings in payroll and benefits is expected to be
approximately $8 million.
"From a business perspective, this re-sizing was carefully implemented and will not affect our ability
to serve our customers," Chia added. "We will be consolidating jobs in a manner to gain efficiencies to
help Chartered's competitiveness."
For details on Chartered's third quarter results and outlook for fourth quarter 2002, please see the
company's earnings release, which was issued today.
About Chartered
Chartered Semiconductor Manufacturing, one of the world's top three silicon foundries, is forging a
customized approach to outsourced semiconductor manufacturing by building lasting and collaborative
partnerships with its customers. The Company provides flexible and cost-effective manufacturing solutions
for customers, enabling the convergence of communications, computing and consumer markets. In Singapore,
Chartered operates five fabrication facilities and has a sixth fab in the process of being developed as a
300mm facility.
A company with both global presence and perspective, Chartered is traded on both the Nasdaq Stock Market
(Nasdaq: CHRT) and on the Singapore Exchange (SGX-ST: CHARTERED). Chartered's 3,500 employees are based at
12 locations around the world. Information about Chartered can be found at www.charteredsemi.com.
Safe Harbor Statement under the provisions of the United States Private Securities Litigation Reform Act of 1995
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 the one-time charge and annual savings in payroll and benefits associated with the workforce reduction;
reflect our current views with respect to future events and financial performance, 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: changes in market outlook
and trends, specifically in the foundry services and communications and computer segments; the rate of semiconductor
market recovery; economic conditions in the United States as well as globally; customer demands; unforeseen delays
or interruptions in our plans for our fabrication facilities (including Fab 7); the performance level of and
technology mix in our fabrication facilities; the successful implementation of our partnership, technology and
supply alliances; and competition. 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.
