BUSINESS is starting to look up for loss-making chip foundry Chartered Semiconductor Manufacturing, which reported with better-than-expected utilisation and profits for its first quarter ended Mar 31.

Chartered, the world's third largest chip-maker, lost US$99 million(S$148 million), less than the US$147 million loss it had originally forecast.

Utilisation rate of its manufacturing facilities was 38 per cent, a shade higher than the 37 per cent it originally expected. The forecast then was based on the then-worsening economic downturn.

Revenue was down 38.8 per cent to US$253.5 million; it had reported a small US$2.4 million profit for the same period last year. Loss per share was 3 US cents.

Chief executive, Chia Song Hwee on Friday said that 'the improvement in customer orders and the resulting sequential growth expectation into the second quarter are definitely encouraging signs.'

Chartered expects a 20 percentage point increase in utilisation to 58 per cent for its current quarter, as customers restock their existing product lines and launch new products.

'Due to macroeconomic conditions that continue to be challenging, it is difficult, however, to predict the growth trend beyond the second quarter,' he added.

It is expecting a loss of between US$54 to US$64 million this quarter.