Chartered Semiconductor Manufacturing (CHRT) got an after-hours bounce Wednesday when the Singapore-based chipmaker announced that it landed a $653 million to help build a new plant.
In recent postclose trading, shares of Chartered were up 19 cents, or 3.2%, to $6.20; the stock closed the regular trading day with a gain of 1 cent to $6.01.
The loan was made by J.P. Morgan and guaranteed by the Export-Import Bank of the U.S. It will be used to bring Fab 7, the company's first 300-millimeter wafer fabrication facility, into production. When completed, the fab will be able to produce 15,000 of the larger wafers per month.
Because wafers are round, the number of chips each slab of silicon can yield increases geometrically as the diameter of the wafer increases. And that, in turn, helps protect margins and raises capacity.
Chartered has also secured an additional $400 million in financing from other lenders.
Earlier this month, the company said
it expects to lose roughly $50 million, or 20 cents an American depositary share, in the fourth quarter, compared with its old estimate for a loss of $49 million, or 19 cents an ADS. The company put revenue for the quarter at $191 million, down from its previous estimate of $193 million.