Chartered on a cash hunt?

March 17, 2004 – Singapore foundry Chartered Semiconductor is looking to raise funds this year to boost production at its 300mm Fab 7 facility, according to analysts quoted in a Reuters story. Chartered already has spent $250 million on Fab 7 and could end up spending 10 times that before it’s ready for volume production.

Analysts say the foundry ended 2003 with $900 million in cash, but analysts think it could finish 2004 with only $200-300 million — “working capital for daily operations alone,” according to Netresearch-Asia analyst Russell Tan.

Chartered has planned to have the fab ready for volume production by mid-2005, but an aggressive ramp-up would require more cash than that, added Pranab Sarmah, analyst at the Daiwa Institute of Research.


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