Chartered CEO: Chip Mkt Recovery Timing Uncertain

SINGAPORE (Dow Jones)–Continued uncertainty about when global economic conditions will improve leaves little visibility on when demand for chips will recover, Chartered Semiconductor Manufacturing Ltd (C27.SG) chief executive said Friday.

“I think right now is difficult for us to make a call on” the timing of the recovery, Chia Song Hwee said during an interview Dow Jones Newswires. “Outlook statements from our customers remain cloudy, so no one is able to give specific guidance beyond this current quarter.”

He added that the current industry downturn is a demand-led problem as the outlook for global growth continues to deteriorate.

Chartered reported a net loss of $114 million for the three months ended Dec. 31, down from a net income of $5.9 million a year earlier due to rapidly declining demand and delivery delays as the global economy continued to deteriorate. Revenue fell 0.3% from a year earlier to $351.7 million.

In an attempt to conserve cash, the company said it will cut 600 jobs, or about 8% of its workforce, and slash capital expenditure by 35% from 2008 to $375 million. Chia said during a conference call that the job cuts, which will come mostly from Singapore, will be executed next week.

The company guided for a first-quarter net loss of between $142 million and $152 million on revenue of $232 million to $244 million.

“”The negative macroeconomic environment and difficult end-market conditions are continuing to impact the foundry industry and our business in a significant way as we go into the first quarter of 2009,” Chartered Chief Financial Officer George Thomas said in a statement. “Foundry customers, we believe, are cutting orders even more aggressively as they grapple with worsening visibility in the market place and rising inventories.”

via Dow Jones News Wires

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