|
Chartered Semiconductor raises $610 million for Fab 7 expansion |
|
|
|
May 18, 2007 at 10:36 AM |
 Chartered Semiconductor Manufacturing has secured a loan worth $610 million for the purchase of process equipment from U.S. tool suppliers as part of the foundry's plans to expand capacity at its 300mm facility, Fab 7.
Chartered said that the funds would be used for the second phase of capacity ramp at its most advanced facility. The credit facility comes in two tranches and has an availability period of between three to five years.
Chia Song Hwee, President and CEO of Chartered, noted in a recent conference call with financial analysts that Fab 7 should be ramped to 25,000wspm with capital spending plan unchanged at $800 million. Fab 7 has a maximum capacity of 45,000wspm, according to Chartered.
Current capacity at Fab 7 reached 15,000wspm in the first quarter of 2007. However, reliable sources told Semiconductor Fabtech recently that Chartered is currently being qualified by Texas Instruments for the first time as part of TI's plans to shift 50 percent of digital CMOS requirements to foundries.
At this point, TI has qualified both TSMC and UMC for 65nm Bulk CMOS requirements and had noted but did not identify in a recent investor day conference the third foundry TI was planning to use.
Chartered's Hwee had also said that 65nm bulk-CMOS production would exceed SOI by the end of 2007.
J.P. Morgan agreed the loan and is guaranteed by the Export-Import Bank of the United States.
Recipients of the capital spending include Applied Materials, Novellus Systems, LAM Research, Varian Semiconductor, KLA as well as other U.S. equipment suppliers.
|
