The net loss in the three months to March fell to 75.7 million US dollars from 128.4 million dollars for the same quarter a year earlier.

Revenue in the March quarter was up 23 percent at 103.8 million dollars, the world's third biggest contract chipmaker said in a statement.

Compared to the previous quarter, revenue fell 3.8 percent from 107.9 million dollars in the December quarter and the net loss was down 30 percent from 108.7 million dollars.

"In the first quarter, revenues of our total business base, which include our share of SMP, grew 13 percent sequentially, as we saw increased demand in all segments of our business, particularly in the computer segment," said chief executive Chia Song Hwee.

Chartered has a minority stake in SMP, a joint venture wafer manufacturing plant with Lucent Technologies.

The state-linked company warned of weaker prospects in the current quarter because of the Severe Acute Respiratory Syndrome (SARS) outbreak and continued weakness in the world's major economies.

"Global economic weakness continues to pace the semiconductor market recovery. The war in Iraq and the outbreak of SARS in various parts of the world adds additional uncertainty to the outlook," said chief financial officer George Thomas.

"Most of our customers remain cautious in their outlook and don't expect significant growth to resume in their end markets until later this year, meaning that our visibility remains poor," he said.

For the June quarter, Chartered forecast a net loss of between 97 and 107 million dollars with revenue seen at 114 to 120 million dollars.

At 10:17 am (0217 GMT), Chartered shares were unchanged at 67.5 Singapore cents (37.9 US cents) and the Straits Times index was 0.71 points higher at

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