6-K

United States
Securities and Exchange Commission

Washington, D.C. 20549

Form 6-K

Report of Foreign Private Issuer Pursuant
to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934
For the quarter ended March 31, 2006

Commission File Number 000-27811

CHARTERED SEMICONDUCTOR
MANUFACTURING LTD

(Exact name of registrant as specified in its charter)

Not Applicable
(Translation of registrant’s name into English)

Republic of Singapore
(Jurisdiction of incorporation or organization)

60 Woodlands Industrial Park D
Street 2, Singapore 738406
(65) 6362-2838
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F þ          Form 40-F o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes o          No þ

If “Yes” is marked, indicate below the file number assigned to registrant in connection with Rule 12g3-2(b). Not applicable.

TABLE OF CONTENTS

EX-99.1 News Release of the Company dated April 21, 2006 relating to its first quarter 2006 results.

TABLE OF CONTENTS

1. Other Events

On April 21, 2006, the Company issued a news release announcing its first quarter 2006 results. A copy of the news release dated April 21, 2006 is attached hereto as Exhibit 99.1.

2. Exhibit

99.1     News Release of the Company dated April 21, 2006.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunder duly authorized.

Date: April 21, 2006

CHARTERED SEMICONDUCTOR MANUFACTURING LTD
By: /s/ George Thomas
Name:	George Thomas
Title:	Senior Vice President and Chief Financial Officer

EXHIBIT INDEX

99.1 News Release of the Company dated April 21, 2006 relating to its first quarter 2006 results.

EX-99.1

Exhibit 99.1

N e w s   R e l e a s e

Investor Contacts:
Suresh Kumar	Lim Li Chuen
(1) 408.941.1110	(65) 6360.4060
sureshk@charteredsemi.com	lclim@charteredsemi.com
Media Contacts:
Chartered U.S.:	Chartered Singapore:
Tiffany Sparks	Maggie Tan
(1) 408.941.1185	(65) 6360.4705
tiffanys@charteredsemi.com	maggietan@charteredsemi.com

All currency figures stated in this report are in US dollars.
The financial statement amounts in this report are determined in accordance with US GAAP.

In order to provide investors additional information regarding the Company’s financial results as determined in accordance with US GAAP, in this report Chartered also provides information on its total business base revenues, which include the Company’s share of Silicon Manufacturing Partners (“Revenues including Chartered’s share of SMP”). Silicon Manufacturing Partners (SMP or Fab 5) is a minority-owned joint-venture company and under US GAAP reporting, SMP revenues are not consolidated into Chartered’s revenues (“Revenues”). References to revenues including Chartered’s share of SMP in this report are therefore not in accordance with US GAAP. To ensure clarity, in Appendix A of this report we have included a reconciliation table which provides comparable data based on revenues determined in accordance with US GAAP, which do not include the Company’s share of SMP.

CHARTERED REPORTS RESULTS FOR FIRST QUARTER 2006

• Chartered revenues of $355.2 million in 1Q 2006, up 95.9 percent from 1Q 2005 and down 3.3 percent sequentially. Revenues including Chartered’s share of SMP of $386.1 million, up 96.9 percent from 1Q 2005 and down 3.3 percent sequentially.

• Net income of $25.3 million, compared to net loss of $84.5 million in 1Q 2005 and net income of $26.5 million in the previous quarter.

SINGAPORE — April 21, 2006 — Chartered Semiconductor Manufacturing (Nasdaq: CHRT and SGX-ST: CHARTERED), one of the world’s top dedicated semiconductor foundries, today announced its results for first quarter 2006.

“Chartered revenues and revenues including our share of SMP in first quarter 2006 were up almost 100 percent compared to the year-ago quarter. Sequentially, Chartered revenues and revenues including our share of SMP were down approximately three percent, in line with guidance we provided on March 3, 2006. For the first time in our history, revenues from 0.13 micron and more advanced technologies contributed approximately 50 percent of our total business base revenues, reflecting the progress we have made in enhancing our business mix through advanced technologies. Net income for the quarter was $25 million, significantly better than the previous guidance,” said George Thomas, senior vice president & CFO of Chartered.

Summary of First Quarter 2006 Performance

• Revenues were $355.2 million in first quarter 2006, up 95.9 percent from $181.4 million in first quarter 2005. Revenues including Chartered’s share of SMP were $386.1 million, up 96.9 percent from $196.1 million in first quarter 2005, primarily due to significant growth in the consumer sector followed by the communications sector and to a lesser extent the computer sector. Sequentially, revenues were down 3.3 percent from $367.2 million in fourth quarter 2005. Revenues including Chartered’s share of SMP were also down 3.3 percent from $399.4 million in fourth quarter 2005 primarily due to weakness in the computer and consumer sectors partially offset by strength in the communications sector.

• Gross profit was $92.4 million, or 26.0 percent of revenues, up from a gross loss of $9.7 million, or negative 5.4 percent of revenues in the year-ago quarter, primarily due to significantly higher revenues. Despite lower revenues, gross profit was up $4.4 million sequentially from $88.0 million, or 24.0 percent of revenues in fourth quarter 2005, due to lower cost per wafer resulting from a higher production level in advanced technologies in first quarter 2006.

• Research and development (R&D) expenses were $34.1 million, compared to $27.3 million in the year-ago quarter, primarily due to higher activities related to library and intellectual property development and the advanced 65-nanometer (nm) technology node.

• Pre-production fab start-up cost was nil in first quarter 2006 as Fab 7 started commercial production during second quarter 2005. Pre-production fab start-up cost was $14.8 million in first quarter 2005.

• Sales and marketing expenses were $13.8 million, up 31.1 percent compared to $10.5 million in the year-ago quarter, primarily due to higher payroll related expenses. Compared to the previous quarter, sales and marketing expenses were up 35.3 percent from $10.2 million, primarily due to higher payroll related expenses and higher financial support for pre-contract customer prototyping activities.

• General and administrative (G&A) expenses were $10.3 million, compared to $9.3 million in first quarter 2005, primarily due to higher payroll related expenses.

• Other operating income of $4.0 million consisted of gain from the disposal of fixed assets, primarily from Fab 1.

• Equity in income of Chartered’s minority-owned joint-venture fab, SMP (Fab 5), was an income of $10.2 million compared to a loss of $9.0 million in the year-ago quarter, primarily due to significantly higher revenues.

• Other income (loss), net, was a charge of $0.5 million compared to a credit of $2.5 million in the year-ago quarter and a credit of $1.9 million in fourth quarter 2005, primarily due to the recognition of an impairment loss on investments.

• Net interest expense was $14.0 million, compared to a net interest expense of $2.4 million in the year-ago quarter, primarily due to lower interest capitalization associated with the ramp of Fab 7 and higher interest expense resulting from higher interest rates and higher outstanding debt, partially offset by higher interest income.

• The financial position of Chartered’s consolidated joint venture fab, Chartered Silicon Partners (CSP or Fab 6), continued to be in capital deficit in first quarter 2006, and therefore none of the loss of $6.1 million in the first quarter was allocated to the minority interest. CSP’s loss in first quarter 2006 decreased compared to the previous quarter, primarily due to lower cost per wafer resulting from a higher production level and lower depreciation. At the end of first quarter 2006, CSP’s capital deficit was $400.7 million.

• Net income was $25.3 million, or 7.1 percent of revenues, compared to a net loss of $84.5 million, or negative 46.6 percent of revenues, in the year-ago quarter, and a net income of $26.5 million, or 7.2 percent of revenues, in the previous quarter. Net income for first quarter 2006 included $2.1 million related to stock-based compensation cost.

• Basic earnings per American Depositary Share (ADS) and basic earnings per share in first quarter 2006 were $0.09 and $0.01 respectively, compared with basic loss per ADS and basic loss per share of $0.34 and $0.03 respectively in first quarter 2005. Basic earnings (loss) per share is computed by deducting from net income or adding to net (loss) the accretion to redemption value of the convertible redeemable preference shares and using the weighted-average number of common shares outstanding.

Wafer Shipments and Average Selling Prices (eight-inch equivalent)

• Shipments in first quarter 2006 were 318.2 thousand wafers, an increase of 81.1 percent compared to 175.8 thousand wafers in first quarter 2005, and an increase of 1.1 percent compared to 314.8 thousand wafers shipped in fourth quarter 2005. Shipments including Chartered’s share of SMP in first quarter 2006 were 349.4 thousand wafers, an increase of 87.6 percent compared to 186.2 thousand wafers in first quarter 2005 and an increase of 1.0 percent compared to 345.8 thousand wafers in fourth quarter 2005.

• Average selling price (ASP) was $1,089 per wafer in first quarter 2006, a decrease of 4.4 percent compared to $1,139 per wafer in fourth quarter 2005, primarily due to pricing decline in advanced technology nodes. ASP including Chartered’s share of SMP was $1,080 per wafer in first quarter 2006, a decrease of 4.4 percent from $1,130 per wafer in fourth quarter 2005.

Capacity and Utilization

• Capacity utilization in first quarter 2006 was 82 percent compared to 59 percent in the year-ago quarter, and 79 percent in fourth quarter 2005. Capacity in first quarter 2006 was up approximately 35 percent compared to first quarter 2005 and down approximately two percent compared to fourth quarter 2005 due to fewer days. Capacity utilization is based on total wafer shipments and total capacity, both of which include Chartered’s share of SMP.

Utilization Table

Data including Chartered’s share of SMP

Thousand 8" equivalent wafers	1Q 2005			2Q 2005			3Q 2005			4Q 2005			1Q 2006
Total wafers shipped		186.2			224.5			295.2			345.8			349.4
Total capacity		317.0			346.5			401.4			435.9			427.5
Utilization		59	%		65	%		74	%		79	%		82	%

Capacity by Fab

(Thousand 8" equivalent wafers)	1Q 2005		2Q 2005		3Q 2005		4Q 2005		1Q 2006		Est. 2Q 2006
Fab 2		130.6		137.7		139.2		145.7		142.6		144.1
Fab 3		71.4		74.3		74.2		74.2		69.5		70.3
Fab 5 (Chartered’s share)		34.5		35.8		36.2		35.6		34.3		34.6
Fab 6		80.5		89.4		100.5		112.9		114.5		115.8
Fab 7 (a)		—		9.3		51.3		67.5		66.6		71.6
Total		317.0		346.5		401.4		435.9		427.5		436.4

(a) Fab 7 started commercial shipment in June 2005.

Market Dynamics

The following business statistics tables provide information on revenues including Chartered’s share of SMP by market sector, region and technology.

Breakdown by Market Sector

Revenues including Chartered’s share of SMP (Percentage of Total)

	1Q 2005			2Q 2005			3Q 2005			4Q 2005			1Q 2006
Communications		37	%		44	%		38	%		29	%		34	%
Computer		31	%		34	%		25	%		22	%		19	%
Consumer		27	%		16	%		32	%		45	%		45	%
Other (b)		5	%		6	%		5	%		4	%		2	%
Total		100	%		100	%		100	%		100	%		100	%

Breakdown by Region

Revenues including Chartered’s share of SMP (Percentage of Total)

	1Q 2005			2Q 2005			3Q 2005			4Q 2005			1Q 2006
Americas		68	%		58	%		72	%		74	%		70	%
Europe		13	%		17	%		10	%		9	%		12	%
Asia-Pacific		13	%		16	%		11	%		11	%		15	%
Japan		3	%		5	%		4	%		4	%		3	%
Other (b)		3	%		4	%		3	%		2	%		—
Total		100	%		100	%		100	%		100	%		100	%

Breakdown by Technology (micron)

Revenues including Chartered’s share of SMP (Percentage of Total)

	1Q 2005			2Q 2005			3Q 2005			4Q 2005			1Q 2006
0.09 and below		0	%		0	%		24	%		28	%		25	%
Up to 0.13		32	%		23	%		17	%		20	%		25	%
Up to 0.15		4	%		6	%		4	%		4	%		2	%
Up to 0.18		18	%		18	%		9	%		12	%		11	%
Up to 0.25		11	%		11	%		10	%		6	%		9	%
Up to 0.35		21	%		26	%		21	%		20	%		18	%
Above 0.35		11	%		12	%		12	%		8	%		10	%
Other (b)		3	%		4	%		3	%		2	%		—
Total		100	%		100	%		100	%		100	%		100	%

(b) 1Q 2005 — 4Q 2005: Includes revenues from services related to generation of customers’ mask sets.

Recent Highlights and Events

• Chartered concluded a refinancing plan to reduce interest cost and term out its debt maturity profile. The company raised US$300 million of 6.25 percent senior notes due 2013, issued at a price of 99.053 percent, through a public offering. Proceeds from the offering were used to prepay US$300 million principal amount of existing bank loans in April 2006.

• Chartered also replaced the call option transaction that it had entered into in August 2004, which would have expired on April 2, 2006, with a new call option transaction for the same 214.8 million of Chartered ordinary shares. For additional details, please refer to Chartered’s press release dated March 29, 2006.

• Chartered, IBM and Samsung announced the availability of design-for-manufacturability (DFM) technology, models, design kits and data files from leading EDA and DFM suppliers in support of the companies’ 65nm Common Platform technology. The DFM support strengthens the companies’ design enablement strategy, which includes a set of common reference flows and technology kits that support the use of the most popular EDA tools, libraries and IP cores.

Review and Outlook

“Based on current demand levels from our customers, we expect Chartered revenues to be up approximately two percent and revenues including our share of SMP to be up approximately one percent in second quarter 2006, compared to the previous quarter. We are forecasting this modest growth despite the lower demand for video game consoles due to the seasonality factor, as stronger demand from applications in the computer and communications sectors more than offset the decline in video game consoles,” said Thomas.

“We expect a utilization rate of approximately 83 percent for the second quarter, after comprehending a capacity increase of two percent. Revenues from 0.13-micron and below technologies, including 90nm, are expected to represent around 50 percent of our total business base revenues and 90nm revenues alone are expected to contribute approximately 20 percent of our total business base revenues. With this business outlook, we expect a net income of around $16 million for the second quarter 2006.”

The outlook for second quarter 2006 is as follows:

	1Q 2006	2Q 2006 Guidance
	Actual	Midpoint and range	Sequential change
Revenues	$355.2M	$363M, ± $4M	Up 1% to 3%
Revenues including Chartered’s share of SMP	$386.1M	$391M, ± $5M	Flat to up 3%
ASP (c)	$1,089	$1,065, ± $20	Flat to down 4%
ASP including Chartered’s share of SMP (c)	$1,080	$1,058, ± $25	Flat to down 4%
Utilization	82%	83%, ± 2%	—
Gross profit (loss)	$92.4M	$90M, ± $4M	—
Net income (loss) (d)	$25.3M	$16M, ± $5M	—
Basic earnings (loss) per ADS	$0.09	$0.05, ± $0.02	—

(c)	Eight-inch equivalent wafers.
(d)	Net income includes the negative profit impact from losses attributable to minority interest, which was $3.0 million in first quarter 2006, and is projected to be nil in second quarter 2006.

CEO Closing Comments

“We believe that customer and product diversity are mitigating the impact of weaker demand from certain applications to which we have high exposure, reflecting the improving fundamentals of the company. As additional products enter production phase in second half of the year, we expect 90nm revenues to resume growth in third quarter 2006,” said Chia Song Hwee, president & CEO of Chartered.

“More encouraging is that we are already engaging with multiple customers at the 65nm node and are further pursuing new markets and customers in 90nm and 65nm technologies to build a pipe line of customers as we continue to ramp our advanced capacity. As we continue to focus on execution and address new market opportunities, sustaining profitability and lowering our breakeven utilization rate still remain top priorities for the management,” concluded Chia.

Webcast Conference Call Today

Chartered will be discussing its first quarter 2006 results and second quarter 2006 outlook on a conference call today, April 21, 2006, at 8:30 a.m. Singapore time (US time 5:30 p.m. PT/8:30 p.m. ET, Thursday, April 20, 2006). A webcast of the conference call will be available to all interested parties on Chartered’s Web site at www.charteredsemi.com, under Investor Relations, or at http://ir.charteredsemi.com.

Mid-Quarter Guidance

The Company provides a guidance update midway through each quarter. For second quarter 2006, the Company anticipates issuing its mid-quarter guidance update, via news release, on Tuesday, June 6, 2006, Singapore time.

APPENDIX A

US GAAP Reconciliation Table

In order to provide investors additional information regarding the company’s financial results as determined in accordance with US GAAP, in this report Chartered also provides information on its total business base revenues, which include the Company’s share of Silicon Manufacturing Partners (“Revenues including Chartered’s share of SMP”). SMP is a minority-owned joint-venture company and under US GAAP reporting, SMP revenues are not consolidated into Chartered’s revenues (“Revenues”). References to revenues including Chartered’s share of SMP in this report are therefore not in accordance with US GAAP. To ensure clarity, the tables below provide a reconciliation.

							2Q 2006
	1Q 2005		4Q 2005		1Q 2006		Guidance
	Actual		Actual		Actual		Midpoint
Revenues (e)	$	181.4M	$	367.2M	$	355.2M	$	363M
Chartered’s share of SMP revenues	$	14.7M	$	32.2M	$	30.9M	$	28M
Revenues including Chartered’s share of SMP	$	196.1M	$	399.4M	$	386.1M	$	391M
ASP (e) (f)	$	996	$	1,139	$	1,089	$	1,065
ASP of Chartered’s share of SMP revenues (f)	$	1,403	$	1,038	$	992	$	978
ASP including Chartered’s share of SMP (f)	$	1,019	$	1,130	$	1,080	$	1,058

(e)	Determined in accordance with US GAAP.
(f)	Eight-inch equivalent wafers.

Breakdown by Market Sector

Revenues (US GAAP) (Percentage of Total)

	1Q 2005			2Q 2005			3Q 2005			4Q 2005			1Q 2006
Communications		37	%		43	%		36	%		28	%		31	%
Computer		29	%		32	%		24	%		19	%		18	%
Consumer		28	%		18	%		35	%		48	%		49	%
Other (g)		6	%		7	%		5	%		5	%		2	%
Total		100	%		100	%		100	%		100	%		100	%

Chartered’s share of SMP revenues (Percentage of Total)

	1Q 2005			2Q 2005			3Q 2005			4Q 2005			1Q 2006
Communications		33	%		44	%		54	%		42	%		75	%
Computer		59	%		51	%		37	%		51	%		22	%
Consumer		7	%		3	%		7	%		6	%		3	%
Other		1	%		2	%		2	%		1	%		—
Total		100	%		100	%		100	%		100	%		100	%

Revenues including Chartered’s share of SMP (Percentage of Total)

	1Q 2005			2Q 2005			3Q 2005			4Q 2005			1Q 2006
Communications		37	%		44	%		38	%		29	%		34	%
Computer		31	%		34	%		25	%		22	%		19	%
Consumer		27	%		16	%		32	%		45	%		45	%
Other (g)		5	%		6	%		5	%		4	%		2	%
Total		100	%		100	%		100	%		100	%		100	%

Breakdown by Region

Revenues (US GAAP) (Percentage of Total)

	1Q 2005			2Q 2005			3Q 2005			4Q 2005			1Q 2006
Americas		73	%		63	%		74	%		76	%		72	%
Europe		8	%		11	%		9	%		8	%		12	%
Asia-Pacific		14	%		17	%		11	%		11	%		13	%
Japan		2	%		5	%		3	%		3	%		3	%
Other (g)		3	%		4	%		3	%		2	%		—
Total		100	%		100	%		100	%		100	%		100	%

Chartered’s share of SMP Revenues (Percentage of Total)

	1Q 2005			2Q 2005			3Q 2005			4Q 2005			1Q 2006
Americas		15	%		17	%		43	%		49	%		45	%
Europe		74	%		66	%		28	%		28	%		18	%
Asia-Pacific		—			4	%		9	%		17	%		30	%
Japan		11	%		13	%		20	%		6	%		7	%
Total		100	%		100	%		100	%		100	%		100	%

Revenues including Chartered’s share of SMP (Percentage of Total)

	1Q 2005			2Q 2005			3Q 2005			4Q 2005			1Q 2006
Americas		68	%		58	%		72	%		74	%		70	%
Europe		13	%		17	%		10	%		9	%		12	%
Asia-Pacific		13	%		16	%		11	%		11	%		15	%
Japan		3	%		5	%		4	%		4	%		3	%
Other (g)		3	%		4	%		3	%		2	%		—
Total		100	%		100	%		100	%		100	%		100	%

Breakdown by Technology (micron)

Revenues (US GAAP) (Percentage of Total)

	1Q 2005			2Q 2005			3Q 2005			4Q 2005			1Q 2006
0.09 and below		—			—			26	%		31	%		27	%
Up to 0.13		33	%		26	%		18	%		21	%		27	%
Up to 0.15		—			—			—			—			—
Up to 0.18		17	%		14	%		6	%		9	%		7	%
Up to 0.25		12	%		12	%		11	%		7	%		9	%
Up to 0.35		22	%		29	%		23	%		21	%		19	%
Above 0.35		13	%		15	%		13	%		9	%		11	%
Other (g)		3	%		4	%		3	%		2	%		—
Total		100	%		100	%		100	%		100	%		100	%

Chartered’s share of SMP Revenues (Percentage of Total)

	1Q 2005			2Q 2005			3Q 2005			4Q 2005			1Q 2006
0.09 and below		—			—			—			—			—
Up to 0.13		10	%		3	%		—			—			—
Up to 0.15		53	%		50	%		47	%		45	%		26	%
Up to 0.18		37	%		47	%		43	%		40	%		56	%
Up to 0.25		—			—			5	%		3	%		5	%
Up to 0.35		—			—			5	%		12	%		13	%
Above 0.35		—			—			—			—			—
Total		100	%		100	%		100	%		100	%		100	%

Revenues including Chartered’s share of SMP (Percentage of Total)

	1Q 2005			2Q 2005			3Q 2005			4Q 2005			1Q 2006
0.09 and below		—			—			24	%		28	%		25	%
Up to 0.13		32	%		23	%		17	%		20	%		25	%
Up to 0.15		4	%		6	%		4	%		4	%		2	%
Up to 0.18		18	%		18	%		9	%		12	%		11	%
Up to 0.25		11	%		11	%		10	%		6	%		9	%
Up to 0.35		21	%		26	%		21	%		20	%		18	%
Above 0.35		11	%		12	%		12	%		8	%		10	%
Other (g)		3	%		4	%		3	%		2	%		—
Total		100	%		100	%		100	%		100	%		100	%

(g) 1Q 2005 — 4Q 2005: Includes revenues from services related to generation of customers’ mask sets.

About Chartered

Chartered Semiconductor Manufacturing (Nasdaq: CHRT, SGX-ST: CHARTERED), one of the world’s top dedicated semiconductor foundries, offers leading-edge technologies down to 65 nanometer (nm), enabling today’s system-on-chip designs. The company further serves the needs of customers through its collaborative, joint development approach on a technology roadmap that extends to 45nm. Chartered’s strategy is based on open and comprehensive design enablement solutions, manufacturing enhancement methodologies, and a commitment to flexible sourcing. In Singapore, the company operates a 300mm fabrication facility and four 200mm facilities. Information about Chartered can be found at www.charteredsemi.com.

Safe Harbor Statement under the provisions of the United States Private Securities Litigation Reform Act of 1995

This news release contains forward-looking statements, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements, including without limitation, statements relating to our outlook for the second quarter of 2006; projected revenues and average selling prices (including Chartered’s share of SMP), utilization rate, gross profit, net income or profit and earnings per ADS and the expected growth of wafer shipments and revenue (including Chartered’s share of SMP); our expectation of revenue contribution from 0.13-micron and below technologies including 90nm; the revenue from (i) 0.13-micron and below technologies and (ii) 90nm as a percentage of our total business base revenues; the percentage growth of 90nm revenues; engagement of multiple customers at 65nm and pursuit of new markets and customers in the 65nm and 90nm technologies and the estimated capacity by fabs for the second quarter 2006 reflect our current views with respect to future events and financial performance and are subject to certain risks and uncertainties, which could cause actual results to differ materially from historical results or those anticipated. Among the factors that could cause actual results to differ materially are changes in the demands from our major customers, excess inventory, life cycle, market outlook and trends or specific products; competition from other foundries; unforeseen delays, interruptions, performance level and technology mix in our fabrication facilities; our progress on leading-edge products; changes in capacity plans, allocation and process technology mix, unavailability of materials, equipment, manpower and expertise; access to or delays in technological advances or our development of process technologies; the successful implementation of our partnership, technology and supply alliances (including our joint development agreements with IBM, Infineon and Samsung); the growth rate of fabless companies, the outsourcing strategy of integrated device manufacturers (“IDM”) and our expectation that IDMs will utilize foundry capacity more extensively; demand and supply outlook in the semiconductor market and the economic conditions in the United States as well as globally. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained. In addition to the foregoing factors, a description of certain other risks and uncertainties which cause actual results to differ materially can be found in “Item 3. Key Information — D. Risk Factors” in our 2005 annual report on Form 20-F filed with the US SEC. You are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s current analysis of future events. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

CHARTERED SEMICONDUCTOR MANUFACTURING LTD AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of US Dollars, except share and per share data)

	Determined in accordance with US GAAP
	Three Months Ended March 31,
	2005			2006
Net revenue	$	181,353		$	355,231
Cost of revenue		191,067			262,842
Gross profit (loss)		(9,714	)		92,389
Operating expenses:
Research and development		27,315			34,144
Fab start-up costs		14,821			—
Sales and marketing		10,507			13,770
General and administrative		9,311			10,297
Other operating expense (income)		(24	)		(3,951	)
Total operating expenses		61,930			54,260
Operating income (loss)		(71,644	)		38,129
Equity in income (loss) of SMP		(9,032	)		10,170
Other income (loss), net		2,501			(534	)
Interest expense, net		(2,426	)		(13,972	)
Foreign exchange loss, net		(478	)		(1,995	)
Income (loss) before income taxes		(81,079	)		31,798
Income tax expense		3,439			6,528
Net income (loss)		(84,518	)		25,270
Less: Accretion to redemption value of convertible redeemable preference shares		—			2,424
Net income (loss) available to common shareholders	$	(84,518	)	$	22,846
Net earnings (loss) per common share and ADS
Basic net earnings (loss) per common share	$	(0.03	)	$	0.01
Diluted net earnings (loss) per common share	$	(0.03	)	$	0.01
Basic net earnings (loss) per ADS	$	(0.34	)	$	0.09
Diluted net earnings (loss) per ADS	$	(0.34	)	$	0.08
Number of common shares (in millions) used in computing :
Basic net earnings (loss) per common share		2,509.8			2,513.9
Effect of dilutive options		—			354.3
Diluted net earnings (loss) per common share		2,509.8			2,868.2
Number of ADS (in millions) used in computing :
Basic net earnings (loss) per ADS		251.0			251.4
Effect of dilutive options		—			35.4
Diluted net earnings (loss) per ADS		251.0			286.8

CHARTERED SEMICONDUCTOR MANUFACTURING LTD AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of US Dollars)

	Determined in accordance with US GAAP
	As of
	December 31,		March 31,
	2005		2006
			(Unaudited)
ASSETS
Cash and cash equivalents	$	819,856	$	852,697
Marketable investments		22,467		22,719
Receivables, net		184,897		192,906
Inventories		134,240		154,518
Other current assets		122,116		90,485
Total current assets		1,283,576		1,313,325
Investment in SMP		50,384		50,045
Technology licenses, net		106,612		103,732
Property, plant and equipment, net		2,049,695		2,026,795
Other non-current assets		27,027		40,163
Total assets	$	3,517,294	$	3,534,060
LIABILITIES, CONVERTIBLE REDEEMABLE PREFERENCE SHARES AND SHAREHOLDERS’ EQUITY
Payables	$	166,681	$	210,974
Current installments of long-term debt and capital lease obligations		322,453		546,219
Other current liabilities		244,119		207,254
Total current liabilities		733,253		964,447
Long-term debt and capital lease obligations, excluding current installments		1,169,034		894,970
Other non-current liabilities		17,970		40,190
Total liabilities		1,920,257		1,899,607
Convertible redeemable preference shares		250,663		253,087
Shareholders’ equity		1,346,374		1,381,366
Total liabilities, convertible redeemable preference shares and shareholders’ equity	$	3,517,294	$	3,534,060

CHARTERED SEMICONDUCTOR MANUFACTURING LTD AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of US Dollars)

	Determined in accordance with US GAAP
	For The Three Months Ended
	March 31,			March 31,
	2005			2006
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	(84,518	)	$	25,270
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Equity in (income) loss of SMP		9,032			(10,170	)
Cash dividends received from SMP		6,300			10,513
Depreciation and amortization		110,601			131,634
Foreign exchange (gain) loss, net		77			(529	)
Gain on disposal of property, plant and equipment		(27	)		(3,951	)
Others, net		(3,197	)		6,593
Changes in assets and liabilities:
Receivables		21,176			(12,351	)
Inventories		(2,309	)		(20,278	)
Other current assets		2,781			(2,679	)
Payables and other liabilities		47,171			977
Net cash provided by operating activities		107,087			125,029
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for property, plant and equipment		(203,784	)		(65,683	)
Payments for technology licenses		(2,542	)		(4,425	)
Purchases of marketable investments		—			(600	)
Refundable deposits placed with a vendor		—			(15,000	)
Refund of deposits placed with a vendor		—			35,000
Proceeds from sale of property, plant and equipment		28			8,586
Proceeds from redemption and maturity of marketable investments		25,000			—
Return of capital from SMP		—			4,133
Others		(1,032	)		(596	)
Net cash used in investing activities		(182,330	)		(38,585	)
CASH FLOWS FROM FINANCING ACTIVITIES
Debt
Borrowings		372,124			—
Repayments		(219,201	)		(82,691	)
Capital lease payments		—			(1,409	)
Receipts of customer deposits		40,000			45,183
Refund of customer deposits		(1,634	)		(21,839	)
Issuance of ordinary shares		946			872
Others		—			5,752
Net cash provided by (used in) financing activities		192,235			(54,132	)
Net increase in cash and cash equivalents		116,992			32,312
Effect of exchange rate changes on cash and cash equivalents		(77	)		529
Cash and cash equivalents at the beginning of the period		539,399			819,856
Cash and cash equivalents at the end of the period	$	656,314		$	852,697