Reflecting continued scarcity of 200mm mature process capacity at the major foundries, Chartered Semiconductor has purchased a 1996-built 200mm fab from Hitachi for $233 million in cash, the company has announced. 

Renesas Technology, a current foundry customer of Hitachi Semiconductor Singapore Pte Ltd (HNS), will be retained by Chartered at the facility, which is worth approximately $250 million to $300 million in future wafer fabrication services, according to Chartered Semiconductor.

“Chartered remains committed to providing a full suite of foundry services to customers, enabling them to deliver market-leading solutions not only in advanced technologies but also in mature technologies,” said Chia Song Hwee, President and CEO of Chartered. “This announcement reflects the progress we have made so far with our value-added technology offerings and allows us to capitalize the investments we have already made in that area by adding immediately available capacity near our existing campus with a trained employee base of approximately 800 people.”

The purchase of the 200mm fab from Hitachi will allow Chartered to reduce capital spending by $40 million in 2008 as less spending on 200mm capacity expansions at its four other 200mm fabs will be required to meet customer demand. Chartered said that capital spending would now be $590 million in 2008.