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Chartered Semiconductor Manufacturing

Jun 11, 2008

Chartered cuts Q2 gross profit forecast

By Jennifer Tan

SINGAPORE (Reuters) - Chartered Semiconductor Manufacturing warned on Tuesday its second-quarter gross profit would be almost a fifth below its earlier guidance due to higher costs, but kept its net profit forecast thanks to a tax writeback.

In contrast to its bigger Taiwanese rivals TSMC and UMC , Chartered is struggling with rising costs and falling profitability amid sluggish demand.

Analysts say Chartered could benefit from being acquired by a larger rival or merging with a peer to increase scale and broaden its customer base. The company said last month it was open to strategic investors.

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