Posted by: bigtalksingapore | September 8, 2009

Chartered Semiconductor Singapore Going down the drain, finally ?

The news headline on Singapore paper was “A multi-billion dollar deal that could help turn  Chartered Semiconductor’s fortunes around is in the works.” (See Attachment #1)

Sound pretty positive right ?
In fact it sound like it’s money drop from heaven and everyone will benefit !

I like to look at it in different angles from Singapore media.

Here is my BigTalk point of view….

  1. Temasak Holdings has 62 percent stake in Chartered Semiconductor and they fully support the deal (See Attachment #2, Tag #1).
    I am guessing that Temasak Holding is probably thinking “Thank god, we can finally off-load this money losing business. We already got lots of problem explaining to Singapore tax payers about the billions we lose. Some more, once we off load it, they can retrench all the staff they want and it’s not my fault.”
    If Chartered Semiconductor is really losing big buck, does it mean that Temasak Holdings has been holding it up all these years with Singapore tax payers money ?
    if Chartered really fall with Temasak Holding still in control, it will be another big tight slap.
    Not good considering Singapore next election is coming.
    .
  2. I think ATIC (Abu Dhabi’s Advance Technology Investment Company) is mainly looking to acquire the business deal of Microsoft Xbox (See Attachment #3, Tag #1).
    Why ? Because they already admitted, there are lots of overlap (Attachment #3, Tag #4).
    .
  3. JP Morgan  said “We believe the acquisition does present potential threat for TSMC and UMC in the advance technology foundry business” (See Attachment #3, Tag #2).
    First of all, look at a comic strip from Straits Times back in 2002 (Attachment #4)
    Chartered Semiconductor has been in the losing since 2002, what make you think it can catch up with the money infusion. Back then, Temasak Holding already got lots of money to spend and they still lose.
    Unless of cos, they replace majority of the people in Chartered Semicon and change the whole culture.
    By the way, who’s JP Morgan ? Are they the same group of people who help to bring down the US market by giving good rating for sub prime loan ?
    Can they be trusted or do they really know their stuff ? Ha Ha Ha…
    .
  4. DBS analyst, Ms Tan,  said that the equity price could be higher if the market gets better (See Attachment #3, Tag #3). But still she advised the shareholder to accept the offer.
    I always get the feeling the analyst said one time and act another.
    I think the analyst, Ms Tan, is thinking that the situation is not getting any better but reluctant to say it outright.
    .
  5. Chartered CEO Mr Chia said “The vast majority of employees will not be affected” (Attachment #3, Tag #5).
    But then he also said that “..putting two existing businesses together with a lot of overlap and trying to squeeze out cost” (Attachment #3, Tag #4).
    Another contradiction.
    If there is overlap and you want to reduce cost, the only way out is to retrench people.
    Do you think ATIC will want to retrenched their own people ? Slowly wait hor..
    So why is Mr Chia saying this, I can only guess that he do it to calm his own Chartered people.
    If not his people will not have the mood to work and affect their product quality and quantity.
    When the retrenchment come, I doubt Mr Chia would be around to be “Hantam” by his people.
    I think the retrenchment will not come until the next Singapore election is over (Probably beginning next year).
    .
  6. Chartered already retrenched 600 staff  (540 from Singapore) early this year (Attachment #3, Tag #6).
    Gee, was it done in preparation  for this take-over by ATIC ?
    .

20090908A2_AbuDhabiStateFundOfferUS$1p8BillionToBuyCharteredSemicon_TodayPg1

Attachment #1: Today, 8 Sep 2009, Page 1

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20090908A1_AbuDhabiStateFundOfferUS$1p8BillionToBuyCharteredSemicon_MyPaperPgA14

Attachment #2: My Paper, 8 Sep 2009, Page A14

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20090908A3_AbuDhabiStateFundOfferUS$1p8BillionToBuyCharteredSemicon_TodayPgB1

Attachment #3:  Today, 8 Sep 2009, Page B1

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20090908A1_CharteredSemiconComic

Attachment #4: The Straits Times, 9 Oct 2002

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Responses

  1. […] GIC, Temasek State Fund Investments – The Temasek Review: Temasek rebuts Wall Street Journal again, but fails to answer key questions – Big Talk Singapore: Chartered Semiconductor Singapore Going down the drain, finally? […]

  2. And if you read the reports carefully, ATIC is interested in Chartered’s mature technology…

    That means that CSM’s “cutting edge” technology is way lagging behind its Taiwanese peers…

    Still don’t bail out?

  3. […] Temasek rebuts Wall Street Journal again, but fails to answer key questions – Big Talk Singapore: Chartered Semiconductor Singapore Going down the drain, finally? – Sgpolitics.net: Preposterous to suggest that Temasek Holdings does not manage citizens’ […]


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