Singapore chipmaker Chartered Semiconductor will spend up to US$1.2 billion on its newest wafer fabrication plant this year and next, chief executive Chia Song Hwee said on Friday.

Mr Chia said US$400 million will be spent this year and between US$700 and US$800 million rolled out in 2005 for the company's Fab 7, which will start pilot-production of 12-inch (300 millimetre) engineering wafers in the third quarter.

He said Chartered Semiconductor expects the plant to break even by the end of next year if production reaches 9,000-10,000 wafers per month.

The company on Friday started moving in equipment for the plant, which has a capacity to produce up to 30,000 12-inch wafers a month.