Chartered Semi higher as UOB reiterates 'buy' (UOB Kay Hian)

Chartered Semiconductor was higher in early trade as UOB Kay Hian reiterated its "buy" rating for the stock, saying the market has underestimated the positive impact on the firm from its microprocessor project with Advanced Micro Devices (AMD). At 9.38 am, Chartered Semiconductor, the world's third largest maker of customized semiconductors, was up 0.04 sgd or 2.7 pct at 1.52 on volume of 14. 512 mln shares. UOB Kay Hian said it has a target price of 1.88 sgd for the stock. In 2004, Chartered Semiconductor struck a deal with computer chipmaker AMD to implement, under license, portions of AMD's Automated Precision Manufacturing (APM) software suite and to become an additional manufacturing source of AMD64 microprocessors. "The AMD64 microprocessor project is on schedule for initial production in June 2006 and volume production in the second half. This is the first time AMD has successfully outsourced production of microprocessors after several failed attempt with other foundries," UOB Kay Hian said. "The product is likely to be a dual or quad-core microprocessor for the high-end desktop or server market. We believe the project is comparable to XBox 360 in terms of size given the large die size and AMD's rapid gain in market share."