Chartered Semiconductor Manufacturing Q2 2007 Earnings Call Transcript

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2007-07-26 23:43:59.0

Tags: Chartered Semiconductor Manufacturing Ltd.

Question-and-Answer Session

Operator

Ladies and gentlemen our question and answer session will be conducted electronically. [Operator Instructions].

And our first question comes from Randy Abrams of Credit Suisse.

Randy Abrams – Credit Suisse First Boston

Yes, I wanted to follow up on your comments on 65 nm, maybe elaborate a bit more on what is keeping some of those customers from ramping more aggressively. Some of the new ones beyond your processor customers. And could you talk about any new applications that you’re adding or have added over the last quarter on 65 nm.

Chia Song Hwee - President and Chief Executive Officer

Yes Randy. We have actually? we have multiple customers being qualified and ready for production. However the volume that is showing up is somewhat less than what we were told previously. So this is basically a reply [ph] to our comment that the ramp is slower than anticipated. I think in general, it is not surprising to see that we have technology migration and new product introduction. The pace at which customers' products are able to go into production, the timing is very hard to call. So we are facing that kind of issues that are not uncommon in the new technology migration.

Now, as far as the applications standpoint, other than the game device as well as the baseband? and we do have other customers that are? that will bring out their product on 65 nm baseband. Other products would be in the wireless space and also in the high definition TV space.

Randy Abrams – Credit Suisse First Boston

Okay, thanks for that. And if your PC customer, following again in the third quarter, maybe talk you could about how close you are to the minimum in that customer? And is there any visibility into rebound beyond third quarter with that customer reselling or a bit better revenue growth in the next quarter?

Chia Song Hwee - President and Chief Executive Officer

The inter-quarter level is down to the minimum. There is a risk of us going below the minimum beyond the third quarter. That’s as much as we can say at the moment. But I think you will be able to see that the inventory level of the customer in that space is still at the high level.

Operator

And moving on to next from Daiwa Securities, we’ll hear from Pranab Kumar.

Pranab Kumar Sarmah - Daiwa Institute of Research

 

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