The Q4 average selling price (ASP) rose 29 percent over the year ago quarter and for the entire year of 2004, the ASP improved by 19 percent versus the ASP for fiscal 2003. The total volume of wafers shipped during 2004 also increased by 54 percent year-over-year.
"Needless to say, we had a difficult fourth quarter," said Bruce Gray, president and interim CEO for Silterra. "We were hit hard by the industry-wide inventory correction, particularly in the consumer segment, which had grown very nicely in the previous four quarters."
A major reduction in demand from Asian customers drove revenue share from the region down to 38 percent compared to the 62 percent share from North America, reversing the split in the previous quarter. For the year, North America accounted for a similar 62 percent of the total revenue while Asia had a 38 percent share.
"Weaknesses in demand have created a significant slowdown in the worldwide semiconductor industry, particularly in the wafer foundry business," stated Gray. "Demand is relatively flat in the networking and computational market segments and is still extremely soft in the consumer space, especially for DVD controllers. We are hoping the business situation improves later this year when several of our new technologies begin to ramp up to higher manufacturing levels."
Silterra, the first wafer foundry to offer high-density, high-voltage processes for the latest generation of color display drivers, expects the new technologies to contribute to an increasingly larger revenue share in 2005. The company also expects its 0.13-micron process technology, scheduled to start production in July, to contribute to revenue in the second half of 2005.
About Silterra Malaysia Sdn. Bhd.:
Silterra Malaysia Sdn. Bhd. is a leading semiconductor wafer foundry that provides advanced foundry standard CMOS logic, high-voltage and mixed-signal/RF technologies. The company's wafer fab has a designed capacity of 40,000 eight-inch wafers per month. Silterra, which is committed to world-class service and environmental friendliness, received Notable Mention in the Malaysian Prime Minister's Hibiscus Award competition for Environmental Performance in 2003. The company is ISO 9001:2000 and ISO 14001 certified. Silterra's headquarters and factory are located in Kulim, Malaysia, and has offices in San Jose (California), Scottsdale (Arizona), Hsinchu (Taiwan) and Munich (Germany). For additional information on Silterra or its services, please visit www.silterra.com.
Contact:
Silterra Malaysia Sdn. Bhd. Steve Della Rocchetta, 408-530-0885 Email Contact or Media contact Katie Olivier, 972-774-9850 Email Contact
