FEB. 14–SINGAPORE– Chartered Semiconductor Manufacturing will close the oldest of its five chip-making plants here by March next year, laying off 500 workers.

The move will save Chartered, one of the world’s largest contract chipmakers, $25 million a year, company officials told the Straits Times daily. It will also allow the company to significantly increase production of more advanced computer chips at its newer plants.
Over the next 14 months, Chartered will phase out operations at its 14-year-old plant, slashing 500 jobs in the process.

The 500 job losses form about 14 percent of its 3,500 staff worldwide. Half of the job losses will involve production operators.

Chartered has lost a total of $801 million in the last two years. Chartered said it is prepared to invest $560 million in the latest chip technology in a bid to catch up with market leaders.