Following significant monthly revenue declines announced by major rivals, TSMC and UMC in recent days, Chartered Semiconductor has provided an update to fourth quarter, 2008 guidance. The Singapore based foundry expects revenues to fall from approximately US$368 million to approximately US$348 million, plus or minus US$5 million, equating to a at least a 24% decline, Q-on-Q.
“As the quarter is progressing, we are seeing some of our customers postponing their deliveries due to, what we believe are, weaker market conditions and their intent to keep inventories low. We are therefore revising our outlook for the fourth quarter. Due to the uncertain business environment that continues to cloud our business visibility,” commented George Thomas, senior vice president & CFO of Chartered.
Fab utilization rates are also declining rapidly. In 3Q08, the utilization rate stood at 85%, however, Chartered had previously guided rates to fall to approximately 63% (mid-point). Now that figure has been lowered to 60% plus or minus 2%.
With utilization rates well below breakeven point, losses are set to increase. Chartered said its net loss was to be in the range of US$80 million, compared to previous guidance of approximately US$57 million. The loss in 3Q08 was US$24.4 million.