Chartered Semiconductor to cut 14% of work force

Feb. 13, 2003 – Singapore – Chartered Semiconductor Manufacturing has outlined its strategy for moving toward a return to profitability. Chartered’s strategy includes a consolidation of its Fab 1 business into Fab 2 by March 2004. Approximately 500 employees will be affected by the consolidation.

Chartered operates five fabs in Singapore. Fab 1 (the company’s only 150mm fab) and Fab 2 both serve mature technology markets. Based on the company’s projections for these markets, they can be adequately served from just Fab 2.

Therefore, in order to significantly reduce its fixed cost base, the company will phase out Fab 1 and consolidate its business into Fab 2. The transition process is expected to take approximately 13 months, during which time Chartered will work with customers to ensure continuity of supply.

The company expects employment in the fab to be maintained through March 31, 2004, and employees are being given the incentive to work through the entirety of this transition period in order to ensure the smooth transfer of business to Fab 2.

Chartered employs about 3,500 people worldwide, and it is not anticipated that the Fab 1 action will result in reductions elsewhere in Chartered’s work force.


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