Monday, March 17, 2003
Struggling Singaporean foundry chipmaker Chartered Semiconductor Manufacturing Pte. Ltd. said it needs more money that it may not be able to raise, in its 2002 annual report filed to the U.S. Securities and Exchange Commission.
Chartered did manage to raise about $600 million in a poorly subscribed rights issue in 2002 but it trails a long way behind Taiwan Semiconductor Manufacturing Co. Ltd. and United Microelectronics Corp. in the foundry market.
A lack of funds for investment could see the company falling further behind and lose credibility as a foundry supplier. The company is looking for partners to help it equip a 300-mm wafer fab.
The annual report makes depressing reading. It contains the phrase: "We expect to incur substantial capital and research and development expenditures in connection with our growth plans and will require additional financing that may not be available."
Elsewhere the company said its capital expenditure budget for 2003 is about $275 million. This compares with 2000 when Chartered spent $964 million and 2001 when it spent $490 million and 2002 when Chartered spent $420 million on capital expenditure, it said.
The company has set a 2003 budget for R&D of $120 million.
As of December 31, 2002, the company has an accumulated debt of $834.0 million. "We cannot assure you that our net losses or negative operating cash flows will not continue or increase in the future or that we will become profitable," the report said.
By: DocMemory
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