SINGAPORE--Silicon foundry supplier Chartered Semiconductor Manufacturing Pte. Ltd. today said its revenues and profits in the second quarter will be substantially greater than expected due to higher selling prices for processed wafers and fabs operating at higher capacity.
The Singapore foundry company said it now expects to report second-quarter revenues that are 10% higher than its $238.4 million sales in the first quarter of 2000. The pure-play foundry company also said it anticipates net income being 4-to-5% higher than its $37.8 million profit in the first three months of this year (see April 19 story).
Chartered's gross profit margin was originally expected to be down sharply from the first quarter because of the cost involved in starting up its new Fab 6 plant. However, strong business conditions have revised the outlook to gross profit margins being down just two percentage points from the first quarter's 35% of net revenues.
Based on current industry trends and expected demand for semiconductors, Chartered said it anticipates earnings per share to remain constant in the third and fourth quarters despite the costs of starting up two new 8-inch wafer fabs.
Chartered will post its second-quarter results on July 21.