By Jennifer Tan
HONG KONG (Reuters) - Contract chip maker Chartered Semiconductor Manufacturing Ltd. (CSMF.SI: Quote, Profile, Research, Stock Buzz) said on Wednesday that revenue growth in 2006 would be "pretty good", led by robust semiconductor demand for consumer devices.
"In Q1 2005, our revenue was just below US$200 million, and in Q1 this year, we're going for $386 million, based on the mid-point of our guidance. That gives us a pretty good run-rate for the year compared to 2005," Chief Executive Chia Song Hwee said at the Reuters Global Technology, Media and Telecoms Summit.
"We'll benefit from stronger demand in Q3 and the first half of Q4. With a good start in Q1, and if Q2 shapes up to be a good quarter, then we would expect a pretty good year," he said in Hong Kong.
Chartered (CHRT.O: Quote, Profile, Research, Stock Buzz) is neck and neck with China's Semiconductor Manufacturing International Corp. (SMIC) (0981.HK: Quote, Profile, Research, Stock Buzz) in the market for custom-built microchips, which is dominated by larger rivals Taiwan Semiconductor Manufacturing Co. Ltd. (2330.TW: Quote, Profile, Research, Stock Buzz) and United Microelectronics Corp. (2303.TW: Quote, Profile, Research, Stock Buzz).
Singapore-based Chartered, 60-percent owned by Singapore's state-owned investment firm Temasek Holdings TEM.UL, returned to profit in the December quarter, its first profitable quarter after four straight quarterly losses due to an industry slump.
In January, Chartered said first-quarter sales would ease 2-5 percent to $381-$391 million from the fourth quarter, including a share of revenues from a joint-venture factory.
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Chia said there was a decline in orders for the chips that power Microsoft Corp.'s (MSFT.O: Quote, Profile, Research, Stock Buzz) Xbox 360 game console. Continued...
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