GlobalFoundries sees Q4 sales up slightly vs Q3

TAIPEI, Oct 13 (BestGrowthStock) – U.S. chipmaker GlobalFoundries
forecast its fourth quarter sales would grow by single-digit
percent from the third quarter, and said it is likely to beat its
own sales target of $3.5 billion for the whole of 2010.

Chief Operating Officer Chia Song Hwee gave the forecasts on
Wednesday during a company technology conference in northern
Taiwan, the event organiser confirmed, without providing other
details.

The privately held company, which competes with bigger
foundry rivals TSMC (2330.TW: ) and UMC (2303.TW: ), has projected
that its capital spending in 2011 will exceed this year’s budget
as it aims to add capacity and upgrades technology.

Taiwan’s TSMC (TSM.N: ) and UMC (UMC.N: ), the world’s two
largest contract chipmakers, have also announced bigger capital
spending for this year when new high-tech gadgets drive fresh
demand for microchips.

However, some analysts warn of a possible supply glut later
this year or early next year if demand slows sharply amid a
fragile global economy.

In the longer term, Globalfoundries is a potential threat to
TSMC and UMC as the company is merging its operations with
recently acquired Chartered Semiconductor in Singapore to create
a single contract chipmaker. [ID:nN12123697]
(Reporting by Baker Li; Editing by Jonathan Standing)

GlobalFoundries sees Q4 sales up slightly vs Q3