EX-99.3 4 u93229exv99w3.htm EX-99.3 THE COMPANY'S SUPPLEMENTARY INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2007. EX-99.3 The Company's supplementary information
Table of Contents

Exhibit 99.3
CHARTERED SEMICONDUCTOR MANUFACTURING LTD
Supplementary Information for the Year Ended December 31, 2007

 


 

CHARTERED SEMICONDUCTOR MANUFACTURING LTD
AND SUBSIDIARIES
INDEX
         
    Page Number
 
       
    S-1  
 
       
    S-13  
 
       
    S-14  

 


Table of Contents

CHARTERED SEMICONDUCTOR MANUFACTURING LTD
DIRECTORS’ REPORT
FOR THE YEAR ENDED DECEMBER 31, 2007
Directors’ Report
We are pleased to submit this annual report to the members of the Company together with the audited unconsolidated and consolidated financial statements for the year ended December 31, 2007.
Directors
The directors in office at the date of this report are as follows:-
     
James A. Norling
  (Chairman)
Chia Song Hwee
  (President and CEO)
Philip Tan Yuen Fah
  (Chairman of Audit Committee)
Andre Borrel
   
Charles E Thompson
   
Tsugio Makimoto
   
Tay Siew Choon
   
Peter Seah Lim Huat
   
Pasquale Pistorio
   
Steven Hugh Hamblin
   
Maurizio Ghirga
   
Directors’ Interests
According to the register kept by the Company for the purposes of Section 164 of the Companies Act, Chapter 50 (the “Act”), particulars of interests of directors who held office at the end of the financial year (including those held by their spouses and infant children) in shares, debentures, warrants and share options of the Company and in related corporations are as follows:
                 
    At beginning    
    of the year/    
    date of   At end of
    appointment   the year
 
               
The Company— Ordinary shares fully paid
               
 
               
James A. Norling
    36,000       36,000  
Chia Song Hwee
    253,083       274,018  
Andre Borrel
    36,060       36,060  
Charles E Thompson
    75,750       75,750  
Tsugio Makimoto
    19,000       79,000  
Pasquale Pistorio
    2,500,000       2,500,000  
Steven Hugh Hamblin
    10,000       10,000  

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CHARTERED SEMICONDUCTOR MANUFACTURING LTD
DIRECTORS’ REPORT
FOR THE YEAR ENDED DECEMBER 31, 2007
                                 
    At beginning            
    of the year/            
    date of   At end of   Exercise   Exercise
    appointment   the year   price   period
                    S$        
 
                               
The Company — Options to subscribe for ordinary shares                
 
                               
James A. Norling
    58,609             3.46     22/02/2003 to 22/02/2007
 
    1,172,195       1,172,195       3.88     01/05/2002 to 01/05/2012
 
    58,609             1.86     30/08/2003 to 30/08/2007
 
    50,000       50,000       0.72     28/02/2004 to 28/02/2008
 
    60,000       60,000       1.10     29/08/2004 to 29/08/2008
 
    110,000       110,000       1.70     27/02/2005 to 27/02/2009
 
    110,000       110,000       1.16     26/08/2006 to 26/08/2010
 
    120,000       120,000       1.21     25/08/2007 to 25/08/2011
 
          60,000       1.07     31/08/2008 to 31/08/2012
 
                               
Chia Song Hwee
    20,935             1.00     28/11/1998 to 28/11/2007
 
    61,704       61,704       0.80     30/11/1998 to 29/11/2008
 
    26,444       26,444       0.80     30/04/1999 to 29/04/2009
 
    234,439       234,439       2.86     29/10/1999 to 29/10/2009
 
    70,331       70,331       2.86     29/04/2000 to 29/10/2009
 
    410,268       410,268       14.24     06/04/2001 to 06/04/2010
 
    527,487       527,487       10.12     03/10/2001 to 03/10/2010
 
    263,743       263,743       4.05     28/03/2002 to 28/03/2011
 
    263,743       263,743       4.26     15/08/2002 to 15/08/2011
 
    234,439       234,439       3.46     22/02/2003 to 22/02/2012
 
    2,344,391       2,344,391       1.86     30/08/2003 to 30/08/2012
 
    300,000       300,000       0.72     28/02/2004 to 28/02/2013
 
    700,000       700,000       1.10     29/08/2004 to 29/08/2013
 
    1,000,000       1,000,000       1.70     27/02/2005 to 27/02/2014
 
    220,000       220,000       1.02     30/07/2004 to 30/07/2014
 
    1,000,000       1,000,000       1.16     26/08/2006 to 26/08/2015
 
    1,000,000       1,000,000       1.21     25/08/2007 to 25/08/2016
 
          470,000       1.07     31/08/2008 to 31/08/2017
 
                               
Andre Borrel
    46,887             3.46     22/02/2003 to 22/02/2007
 
    46,887             1.86     30/08/2003 to 30/08/2007
 
    40,000       40,000       0.72     28/02/2004 to 28/02/2008
 
    45,000       45,000       1.10     29/08/2004 to 29/08/2008
 
    85,000       85,000       1.70     27/02/2005 to 27/02/2009
 
    60,000       60,000       1.16     26/08/2006 to 26/08/2010
 
    70,000       70,000       1.21     25/08/2007 to 25/08/2011
 
          35,000       1.07     31/08/2008 to 31/08/2012
 
                               
Charles E Thompson
    29,304             3.46     22/02/2003 to 22/02/2007
 
    29,304             1.86     30/08/2003 to 30/08/2007
 
    25,000       25,000       0.72     28/02/2004 to 28/02/2008
 
    35,000       35,000       1.10     29/08/2004 to 29/08/2008
 
    60,000       60,000       1.70     27/02/2005 to 27/02/2009
 
    60,000       60,000       1.16     26/08/2006 to 26/08/2010
 
    70,000       70,000       1.21     25/08/2007 to 25/08/2011
 
          35,000       1.07     31/08/2008 to 31/08/2012

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CHARTERED SEMICONDUCTOR MANUFACTURING LTD
DIRECTORS’ REPORT
FOR THE YEAR ENDED DECEMBER 31, 2007
                                 
    At beginning            
    of the year/            
    date of   At end of   Exercise   Exercise
    appointment   the year   price   period
                    S$        
 
                               
Tsugio Makimoto
    29,304             3.46     22/02/2003 to 22/02/2007
 
    29,304             1.86     30/08/2003 to 30/08/2007
 
    25,000             0.72     28/02/2004 to 28/02/2008
 
    35,000             1.10     29/08/2004 to 29/08/2008
 
    60,000       60,000       1.70     27/02/2005 to 27/02/2009
 
    60,000       60,000       1.16     26/08/2006 to 26/08/2010
 
    70,000       70,000       1.21     25/08/2007 to 25/08/2011
 
          35,000       1.07     31/08/2008 to 31/08/2012
 
                               
Peter Seah Lim Huat
    23,443             3.46     22/02/2003 to 22/02/2007
 
    46,887             1.86     30/08/2003 to 30/08/2007
 
    40,000       40,000       0.72     28/02/2004 to 28/02/2008
 
    45,000       45,000       1.10     29/08/2004 to 29/08/2008
 
    85,000       85,000       1.70     27/02/2005 to 27/02/2009
 
    85,000       85,000       1.16     26/08/2006 to 26/08/2010
 
    95,000       95,000       1.21     25/08/2007 to 25/08/2011
 
          47,500       1.07     31/08/2008 to 31/08/2012
 
                               
Tay Siew Choon
    29,304             3.46     22/02/2003 to 22/02/2007
 
    234,439             3.88     01/05/2002 to 01/05/2007
 
    46,887             1.86     30/08/2003 to 30/08/2007
 
    25,000       25,000       0.72     28/02/2004 to 28/02/2008
 
    35,000       35,000       1.10     29/08/2004 to 29/08/2008
 
    60,000       60,000       1.70     27/02/2005 to 27/02/2009
 
    60,000       60,000       1.16     26/08/2006 to 26/08/2010
 
    70,000       70,000       1.21     25/08/2007 to 25/08/2011
 
          35,000       1.07     31/08/2008 to 31/08/2012
 
                               
Philip Tan Yuen Fah
    85,000       85,000       1.70     27/02/2005 to 27/02/2009
 
    85,000       85,000       1.16     26/08/2006 to 26/08/2010
 
    95,000       95,000       1.21     25/08/2007 to 25/08/2011
 
          47,500       1.07     31/08/2008 to 31/08/2012
 
                               
Pasquale Pistorio
    60,000       60,000       1.16     26/08/2006 to 26/08/2010
 
    70,000       70,000       1.21     25/08/2007 to 25/08/2011
 
          35,000       1.07     31/08/2008 to 31/08/2012
 
                               
Steven Hugh Hamblin
    70,000       70,000       1.21     25/08/2007 to 25/08/2011
 
          35,000       1.07     31/08/2008 to 31/08/2012
 
                               
Maurizio Ghirga
          35,000       1.07     31/08/2008 to 31/08/2012

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CHARTERED SEMICONDUCTOR MANUFACTURING LTD
DIRECTORS’ REPORT
FOR THE YEAR ENDED DECEMBER 31, 2007
The Company — Restricted Share Units (RSUs) *
                 
    At beginning    
    of the year/    
    date of   At end of
    appointment   the year
 
               
James A. Norling
          25,450  
Chia Song Hwee
          325,230  
Andre Borrel
          14,840  
Charles E Thompson
          14,840  
Tsugio Makimoto
          14,840  
Peter Seah Lim Huat
          20,190  
Tay Siew Choon
          14,840  
Philip Tan Yuen Fah
          20,190  
Pasquale Pistorio
          14,840  
Steven Hugh Hamblin
          14,840  
Maurizio Ghirga
          14,840  
 
(*)   RSU will vest in accordance with the terms and conditions of the RSU Plan as disclosed under “Share-Based Compensation Plans”.
The Company — Performance Share Units (PSUs) **
                 
    At beginning    
    of the year/    
    date of   At end of
    appointment   the year
 
               
Chia Song Hwee
          240,320  
 
(**)   PSU will vest in accordance with the terms and conditions of the PSU Plan as disclosed under “Share-Based Compensation Plans”.
Related Corporations
                 
    At beginning    
    of the year/    
    date of   At end of
    appointment   the year
 
               
Global Crossing Limited — common stock of US$0.01 each
 
               
Peter Seah Lim Huat
    1,785       7,771  

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CHARTERED SEMICONDUCTOR MANUFACTURING LTD
DIRECTORS’ REPORT
FOR THE YEAR ENDED DECEMBER 31, 2007
                                 
    At beginning            
    of the year/            
    date of   At end of   Exercise   Exercise
    appointment   the year   price   period
                    US$        
 
                               
Global Crossing Limited — Options to subscribe for common stocks of US$0.01 each
 
                               
Peter Seah Lim Huat
    40,000       40,000       10.16     12/01/2005 to 12/01/2014
                         
    At beginning        
    of the year/        
    date of   At end of    
    appointment   the year   Vesting period
 
                       
Global Crossing Limited — Restricted stock units of common stock of US$0.01 each
 
                       
Peter Seah Lim Huat
    5,625       4,125     08/03/2005 to 08/03/2009
 
    3,294             15/08/2007  
 
          2,420       12/06/2008  
                 
    At beginning    
    of the year/    
    date of   At end of
    appointment   the year
 
               
Green Dot Internet Services Pte Ltd — Ordinary shares fully paid
 
               
Tay Siew Choon
    30,316        
 
               
Singapore Computer Systems Limited — Ordinary shares fully paid
 
               
Tay Siew Choon
    971,000       971,000  
 
               
Singapore Telecommunications Limited — Ordinary shares fully paid
 
               
Chia Song Hwee
    1,610       1,610  
Peter Seah Lim Huat
    3,040       3,040  
Tay Siew Choon
    2,850       2,850  
Philip Tan Yuen Fah
    3,220       3,220  
 
               
Singapore Technologies Engineering Ltd — Ordinary shares fully paid
 
               
Philip Tan Yuen Fah
    120,686       20,000  
Peter Seah Lim Huat
          307,500  

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CHARTERED SEMICONDUCTOR MANUFACTURING LTD
DIRECTORS’ REPORT
FOR THE YEAR ENDED DECEMBER 31, 2007
                                 
    At beginning            
    of the year/            
    date of   At end of   Exercise   Exercise
    appointment   the year   price   period
                    S$        
 
                               
Singapore Technologies Engineering Ltd — Options to subscribe for ordinary shares
 
                               
Peter Seah Lim Huat
    89,000             1.92     13/08/2003 to 12/08/2007
 
    44,500             1.79     07/02/2004 to 06/02/2008
 
    40,500             1.86     12/08/2004 to 11/08/2008
 
    44,500       11,125       2.09     10/02/2005 to 09/02/2009
 
    44,500       11,125       2.12     11/08/2005 to 10/08/2009
 
    44,500       22,250       2.37     08/02/2006 to 07/02/2010
 
    44,500       22,250       2.57     11/08/2006 to 10/08/2010
 
    44,500       33,375       3.01     10/02/2007 to 09/02/2011
 
    44,500       33,375       2.84     11/08/2007 to 10/08/2011
 
          44,500       3.23     16/03/2008 to 15/03/2012
 
          44,500       3.61     11/08/2008 to 10/08/2012
 
                               
Philip Tan Yuen Fah
    55,000             2.29     08/02/2003 to 07/02/2007
 
    27,500       27,500       1.79     07/02/2004 to 06/02/2008
 
    27,500       27,500       1.86     12/08/2004 to 11/08/2008
                 
    At beginning    
    of the year/    
    date of   At end of
    appointment   the year
 
               
SNP Corporation Ltd — Ordinary shares fully paid
 
               
Tay Siew Choon
          197,000  
                                 
    At beginning            
    of the year/            
    date of   At end of   Exercise   Exercise
    appointment   the year   price   period
                    S$        
 
                               
SNP Corporation Ltd — Options to subscribe for ordinary shares
 
                               
Tay Siew Choon
    20,000             0.50     23/04/2002 to 22/04/2011
 
    50,000             0.69     17/04/2003 to 16/04/2007
 
    50,000             0.59     15/04/2004 to 14/04/2008
 
    70,000             1.19     21/04/2005 to 20/04/2009
 
    77,000             0.90     19/04/2006 to 18/04/2010

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CHARTERED SEMICONDUCTOR MANUFACTURING LTD
DIRECTORS’ REPORT
FOR THE YEAR ENDED DECEMBER 31, 2007
                                 
    At beginning            
    of the year/            
    date of   At end of   Exercise   Exercise
    appointment   the year   price   period
                    S$        
 
                               
STT Communications Ltd — Options to subscribe for ordinary shares
 
                               
Peter Seah Lim Huat
    9,750             0.57     30/07/2004 to 29/07/2013
 
    65,000             1.08     29/07/2005 to 28/07/2014
                 
    At beginning    
    of the year/    
    date of   At end of
    appointment   the year
 
               
Singapore Food Industries Limited — Ordinary shares fully paid
 
               
Tay Siew Choon
    676,000       676,000  
Philip Tan Yuen Fah
    210,000       280,000  
                                 
    At beginning            
    of the year/            
    date of   At end of   Exercise   Exercise
    appointment   the year   price   period
                    S$        
 
                               
Singapore Food Industries Limited — Options to subscribe for ordinary shares
 
                               
Philip Tan Yuen Fah
    70,000             0.78     09/08/2003 to 08/08/2007
 
    70,000       70,000       0.76     05/08/2004 to 04/08/2008
 
    70,000       70,000       0.80     10/06/2005 to 09/06/2009
 
    70,000       70,000       0.99     13/06/2006 to 12/06/2010
 
    70,000       70,000       0.92     11/08/2007 to 10/08/2011
 
          80,000       0.89     31/07/2008 to 30/07/2012
                 
    At beginning    
    of the year/    
    date of   At end of
    appointment   the year
 
               
SMRT Corporation Ltd — Ordinary shares fully paid
 
               
Tay Siew Choon+
    30,000       30,000  
 
               
StarHub Ltd — Ordinary shares fully paid
 
               
Peter Seah Lim Huat
    133,720       147,560  

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CHARTERED SEMICONDUCTOR MANUFACTURING LTD
DIRECTORS’ REPORT
FOR THE YEAR ENDED DECEMBER 31, 2007
                                 
    At beginning            
    of the year/            
    date of   At end of   Exercise   Exercise
    appointment   the year   price   period
                    S$        
 
                               
StarHub Ltd — Options to subscribe for ordinary shares
 
                               
Peter Seah Lim Huat
    6,250             0.880     29/11/2004 to 28/11/2008
 
    6,250             0.960     03/04/2005 to 02/04/2009
 
    12,500       6,250       0.985     27/11/2005 to 26/11/2009
 
    17,000       8,500       1.520     31/05/2006 to 30/05/2010
                 
    At beginning    
    of the year/    
    date of   At end of
    appointment   the year
 
               
StarHub Ltd — Conditional award granted under the Starhub Restricted Stock Plan
 
               
Peter Seah Lim Huat
          17,200  
                                 
    At beginning            
    of the year/            
    date of   At end of   Exercise   Exercise
    appointment   the year   price   period
                    S$        
 
                               
STATS ChipPAC Ltd — Options to subscribe for ordinary shares
 
                               
Peter Seah Lim Huat
    45,000             1.08     29/05/2007 to 28/05/2011
 
    40,000             0.925     31/10/2006 to 30/10/2010
 
    40,000             1.01     03/05/2006 to 02/05/2010
 
    35,000             1.06     11/08/2005 to 10/08/2014
 
    70,000       70,000       1.99     06/08/2004 to 05/08/2013
 
    35,000       35,000       1.91     17/02/2005 to 16/02/2014
                     
    At beginning        
    of the year/        
    date of   At end of    
    appointment   the year   Vesting period
 
                   
STATS ChipPAC Ltd — Restricted Share Units (RSUs)
                   
 
                   
Peter Seah Lim Huat
          20,700     16/02/2008 to 16/02/2010

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CHARTERED SEMICONDUCTOR MANUFACTURING LTD
DIRECTORS’ REPORT
FOR THE YEAR ENDED DECEMBER 31, 2007
                 
    At beginning    
    of the year/    
    date of   At end of
    appointment   the year
 
               
Telechoice International Limited — Ordinary shares fully paid
 
               
Peter Seah Lim Huat
    50,000       50,000  
Tay Siew Choon
    60,000       60,000  
 
               
Vertex Investment (II) Ltd — Ordinary shares fully paid
 
               
Tay Siew Choon*
    2       2  
 
               
Vertex Technology Fund Ltd — Ordinary shares fully paid
 
               
Tay Siew Choon ++
    20       20  
                 
    At beginning    
    of the year/    
    date of   At end of
    appointment   the year
 
               
Vertex Technology Fund (II) Ltd — Ordinary shares fully paid
 
               
Tay Siew Choon +++  
    500       500  
 
               
Vertex Technology Fund (II) Ltd — Redeemable preference shares fully paid
 
               
Tay Siew Choon +++  
    500       500  
 
*   Held in the name of United Overseas Bank Trustee Limited
 
+   Held in the name of DBS Nominees (Private) Limited
 
++   Held in the name of HSBC Trustee (Singapore) Limited
 
+++   Held in the name of DBS Vickers Securities Nominees (Singapore) Pte Ltd

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CHARTERED SEMICONDUCTOR MANUFACTURING LTD
DIRECTORS’ REPORT
FOR THE YEAR ENDED DECEMBER 31, 2007
Except as disclosed in this report, no director who held office at the end of the financial year had an interest in shares, debentures, warrants or share options of the Company, or of related corporations, either at the beginning of the financial year, or date of appointment if later, or at the end of the financial year.
Except as disclosed in this report and in the accompanying financial statements, neither at the end of, nor at any time during the financial year, was the Company a party to any arrangement whose object is to enable the directors of the Company to acquire benefits by means of the acquisition of shares in, or debentures of, the Company or any other body corporate.
Directors’ Interests in Contracts
During the financial year, one of the directors of the Company received advisory fees from a related company in his capacity as Corporate Advisor to the company for provision of strategic, organizational and corporate finance advisory services.
Except as disclosed in this report and in the accompanying financial statements, since the end of the last financial year, no director has received or become entitled to receive a benefit by reason of a contract made by the Company or a related corporation with the director or with a firm of which he is a member or with a company in which he has a substantial financial interest.
Share-Based Compensation Plans
(i)   1999 Option Plan
During the financial year, the Company granted a total of 9,005,250 options to eligible participants pursuant to the Chartered Semiconductor Manufacturing Ltd Share Option Plan 1999 (the “1999 Option Plan”). The exercise prices of these options range from S$1.06 to S$1.55. The expiration dates of the options range from 31 August 2012 to 24 October 2017.
The options granted by the Company do not entitle the holders of the options, by virtue of such holding, to any rights to participate in any share issue of any other company.
The Company issued a total of 2,446,044 fully paid ordinary shares pursuant to the exercise of options granted under the 1999 Option Plan at exercise prices ranging from S$0.72 to S$1.86 for cash during the financial year.
At the end of the financial year, the number of unissued shares of the Company under option in relation to the 1999 Option Plan was 115,019,326. The exercise prices of these options range from S$0.69 to S$14.24. The expiration dates of the options range from 28 February 2008 to 24 October 2017.
The basis upon which the option may be exercised and other details of the Company’s 1999 Option Plan are set out in the accompanying consolidated financial statements.
(ii)   ESPP 2004 Plans
During the financial year, the Company issued a total of 1,284,170 fully paid ordinary shares pursuant to the Chartered Semiconductor Manufacturing Ltd Employee Purchase Plan 2004 (the “Chartered ESPP 2004”) and the share purchase plan for the employees of Silicon Manufacturing Partners Pte Ltd (the “SMP ESPP 2004”), collectively “ESPP 2004 Plans” at prices from S$1.02 to S$1.40.
The basis upon which the shares are issued and other details of the Company’s ESPP 2004 Plans are set out in the accompanying consolidated financial statements.

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CHARTERED SEMICONDUCTOR MANUFACTURING LTD
DIRECTORS’ REPORT
FOR THE YEAR ENDED DECEMBER 31, 2007
(iii)   RSU Plan and PSU Plan
In April 2007, the Company’s shareholders approved the “Chartered Semiconductor Manufacturing Ltd Restricted Share Unit Plan 2007” (the “RSU Plan”) and the “Chartered Semiconductor Manufacturing Ltd Performance Share Unit Plan 2007” (the “PSU Plan”), under which restricted share units (“RSUs”) and performance share units (“PSUs”) in respect of ordinary shares in the capital of the Company will, respectively, be granted, free of payment, to selected employees.
RSU Plan
The RSU Plan is a share-based incentive designed to reward, retain and motivate the Company’s employees. The RSU Plan also extends to employees of Silicon Manufacturing Partners Pte Ltd (“SMP”), an associated company of the Company. Each RSU will entitle the holder to one ordinary share of the Company. The RSUs awarded will vest equally on each of the anniversaries of the grant date of the award until the end of the vesting period (each such date, a “Vesting Date”), and ordinary shares will be issued provided the employee remains employed by the Company through such anniversary dates; otherwise the unvested RSUs will be forfeited.
During the financial year, a total of 4,060,510 RSUs were granted by the Company. These RSUs have a vesting schedule of three years. As at the end of the financial year, 4,035,980 RSUs remained outstanding as 24,530 RSUs were forfeited during the period from the date of grant to December 31, 2007.
The RSUs granted by the Company do not entitle the holders of the RSUs, by virtue of such holding, to any rights to participate in any share issue of any other company.
PSU Plan
The PSU Plan is a share-based incentive for senior executives in key positions who are able to drive the strategic direction and performance of the Company. Each PSU will entitle the holder to one ordinary share of the Company. The PSUs awarded will generally vest at the end of the requisite service period and vesting of the awards is contingent upon the achievement of certain pre-determined conditions which will be established at the grant date. Ordinary shares will be issued provided the employee remains employed by the Company at the end of the requisite service period.
During the financial year, a total of 2,315,630 base number of PSUs that may be awarded at the end of a three-year vesting period were granted. As at the end of the financial year, all 2,315,630 PSUs remained outstanding as no PSUs were vested or forfeited during the period from the date of grant to December 31, 2007.
The PSUs granted by the Company do not entitle the holders of the PSUs, by virtue of such holding, to any rights to participate in any share issue of any other company.
Other details of the RSU Plan and the PSU Plan are set out in the accompanying consolidated financial statements.

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CHARTERED SEMICONDUCTOR MANUFACTURING LTD
DIRECTORS’ REPORT
FOR THE YEAR ENDED DECEMBER 31, 2007
Except as set out above and in the accompanying financial statements:
(i)   during the financial year, there were no options granted by the Company or its subsidiaries to any person to take up unissued shares in the Company or its subsidiaries;
 
(ii)   during the financial year, there were no shares issued by virtue of any exercise of option to take up unissued shares of the Company or its subsidiaries; and
 
(iii)   as at the end of the financial year, there were no unissued shares of the Company or its subsidiaries under options granted by the Company or its subsidiaries.
Audit Committee
The financial statements, accounting policies and system of internal accounting controls are the responsibility of the Board of Directors acting through the Audit Committee. The Committee met during the year to review the scope of work of the internal auditors and of the statutory auditors, and the results arising therefrom, including their evaluation of the system of internal controls. The Committee reviewed the independence of the statutory auditors, as well as the assistance given by the Company’s officers to the auditors. The announcements of results and the audited financial statements were reviewed by the Committee prior to their submission to the directors of the Company for adoption.
The Committee has recommended to the Board of Directors that the auditors, KPMG, be nominated for re-appointment as auditors at the forthcoming Annual General Meeting of the Company.
Auditors
The auditors, KPMG, have indicated their willingness to accept re-appointment.
On behalf of the Board of Directors
JAMES A. NORLING
Chairman
CHIA SONG HWEE
President and CEO
Singapore
February 27, 2008

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CHARTERED SEMICONDUCTOR MANUFACTURING LTD
STATEMENT BY DIRECTORS
FOR THE YEAR ENDED DECEMBER 31, 2007
In our opinion:
(a)   the financial statements set out on pages F-2 to F-47, F-49 and F-50 are drawn up so as to give a true and fair view of the consolidated and unconsolidated state of affairs of the Company as at December 31, 2007 and of the consolidated results of the business, consolidated and unconsolidated changes in equity and consolidated cash flows of the Company for the year ended on that date; and
 
(b)   at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they fall due.
The Board of Directors has authorized these financial statements for issue on the date of this statement.
On behalf of the Board of Directors
JAMES A. NORLING
Chairman
CHIA SONG HWEE
President and CEO
Singapore
February 27, 2008

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Shareholders of Chartered Semiconductor Manufacturing Ltd:
We have audited the financial statements of Chartered Semiconductor Manufacturing Ltd and subsidiaries (the “Group”) as of December 31, 2007 and 2006, and for each of the years in the three-year period ended December 31, 2007 and have issued our report thereon dated March 7, 2008.
We conducted our audit in accordance with standards of the Public Company Accounting Oversight Board (United States). Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion:
(a)   the consolidated financial statements of the Group and the balance sheet of the Company are properly drawn up in accordance with the provisions of the Companies Act, Chapter 50 (the “Act”) to give a true and fair view of the state of affairs of the Group and of the Company as at December 31, 2007 and of the statements of operations, comprehensive income (loss), shareholders’ equity and cash flows of the Group for the year ended on that date; and
 
(b)   the accounting and other records required by the Act to be kept by the Company and by those subsidiaries incorporated in Singapore of which we are the auditors have been properly kept in accordance with the provisions of the Act.
KPMG
Certified Public Accountants
Singapore
March 7, 2008

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