Chartered Semiconductor Forecasts a Loss for Q3

Chip maker Chartered Semiconductor predicted it will post a loss in the third quarter as growth slows and rising costs bite. The world's third largest contract chip maker was only able to report a net profit in the second quarter because of a US$50 million tax benefit, and expects to post a net loss of US$29 million for the three months ending September 30, it said Friday. Chartered reported a net profit of US$43.4 million in the second quarter as revenue increased 41 percent year-on-year to US$457.6 million. One major problem for the company is falling prices. Average selling prices per silicon wafer fell to US$864 in the second quarter, from US$892 in the first quarter. Hundreds or even thousands of chips can be made on one silicon wafer, depending on the type of chip. The declining value of the U.S. dollar is also part... [read full story]