GlobalFoundries-Owned Chartered Semiconductor Posts Q3 Results
In theory, Chartered is capable of starting at least 148,000 wafers per month; 172,000 if we include Fab 5 SMP (Chartered has a minority share in this venture.) The company owns five fabs (six if we include Fab 5). GlobalFoundries, in contrast, owns both Module 1 (Fab 36, 300mm wafers, 45nm technology) and Module 2 (300mm wafers, ramping up 32nm bulk silicon). With Fab 2 still years away from completion, GlobalFoundries is limited in its ability to offer customers a variety of process technologies and price points. Chartered isn't nearly so constrained, and at least some of its own fabs could be modernized. At the very least, acquiring the company gave GlobalFoundries' production capability an enormous boost.
By The Numbers:
Chartered reported revenue of $415.2 million in Q3, up 16 percent from Q2, but down 10 percent year-on-year. The company posted a net quarterly loss of $4.7 million, but noted in its report that this includes transaction costs of $8.4 million related to the ATIC acquisition in early September. Chartered's fab capacity utilization rate was 75 percent in the third quarter compared to 60 percent in Q2, but again, was down 10 percent year-on-year. Results from the likes of AMD and Intel have painted a similar picture of quarterly sales; revenue recovered significantly compared to Q4, but was still off by 10-20 percent sequentially, depending on the company.
Despite its improved revenue in Q3, the company's net income was just $27 million, or 0.6 percent of total revenue. The new GlobalFoundries partner shipped just over 449,000 wafers in Q3, with an average selling price (ASP) of $879 per wafer in Q3, compared to $929 per wafer in Q2. Chartered doesn't appear to report its ASPs in terms of percent, probably because it produces across so many different nodes and multiple wafer sizes.
Chartered's leading-edge capacity and total capacity. The (1) states: In thousands 8" equivalent wafers. Includes Chartered's share of minority-owned joint-venture SMP (Fab 5). From 2Q 2008 onwards, also includes capacity from eight-inch fab acquisition (Fab 3E).
Now that GlobalFoundries has itself not two, but seven fabrication plants—eight, if we include Fab 2—it'll be interesting to see what the foundry does with them. Despite its somewhat aged process technology and limited access to 300mm wafers, Chartered is currently capable of producing an estimated 641,400 wafers a quarter (200mm production-equivalent). That figure would jump substantially if the company modernized its production facilities, but ATIC has not yet released any information on how it might update or retire current facilities.