Document:

<PAGE>
                                                                    Exhibit 4.40

                                               Confidential Treatment Requested:
 The portions of this document marked by "xxxxx" have been omitted pursuant to a
      request for confidential treatment and have been filed separately with the
                                              Securities and Exchange Commission

                         FIRST SUPPLEMENTAL AGREEMENT TO
                     THE REFUNDABLE CROSS DEPOSIT AGREEMENT

This First Supplemental Agreement (the "Supplemental Agreement") is made and
entered into effective as of December 19, 2003 between

CHARTERED SEMICONDUCTOR MANUFACTURING LTD ("Chartered"), with its principal
place of business at 60 Woodlands Industrial Park D, Street 2, Singapore 738406
(hereinafter referred to as "Chartered"),

And

INTERNATIONAL BUSINESS MACHINES CORPORATION ("IBM"), having an office for the
conduct of business at 2070 Route 52, Hopewell Junction, NY 12533, U.S.A.

and is supplemental to the Refundable Cross Deposit Agreement made and entered
into between such parties and effective the 26th November 2002 (the "Refundable
Cross Deposit Agreement").

Chartered and IBM shall hereinafter be jointly referred to as the "Parties" or
individually as a "Party".

NOW THEREFORE, the parties agree as follows:

1.   DEFINITIONS

     Initial capitalized expressions in this Supplemental Agreement shall,
     unless the context otherwise requires, bear the same meaning and
     construction as in the Refundable Cross Deposit Agreement. In addition for
     the purpose of this Supplemental Agreement, the words below in bold letters
     have the following meanings:

     "IBM'S SUPPLEMENTAL PREPAID CAPACITY PERIOD" means the period commencing on
     the first day of the calendar quarter in which IBM first purchases from
     Chartered more than xxxxx wafers under all agreements collectively, and
     ending three (3) years thereafter, or, if Section 4 is applicable, four (4)
     years thereafter.

2.   IBM'S SUPPLEMENTAL PREPAID CAPACITY DEPOSIT

     IBM shall, pursuant to Section 3.5 of the Refundable Cross Deposit
     Agreement, make an IBM's Supplemental Capacity Deposit in the amount of
     xxxxx. The first xxxxx of such IBM's Supplemental Capacity Deposit shall be
     made on or before xxxxx and the balance of such IBM's Supplemental Capacity
     Deposit shall be made on or before xxxxx.

3.   PRICING OF WAFERS

     Notwithstanding Section 2.2 and Exhibit A of the Refundable Cross Deposit
     Agreement:

<PAGE>

(a)  during the IBM's Supplemental Prepaid Capacity Period, and provided that
     IBM's Prepaid Capacity Deposit has not yet been fully refunded pursuant to
     Section 3.4 of the Refundable Cross Deposit Agreement, the price of the
     first xxxxx wafers supplied by Chartered to IBM under all agreements
     collectively in each calendar quarter shall be determined in accordance
     with xxxxx, subject however, in the case of products supplied by Chartered
     to IBM under the IBM Fabrication Subcontract Agreement between the Parties
     and effective as of December 19, 2003, to the provisions on pricing in such
     IBM Fabrication Subcontract Agreement between the Parties and effective as
     of December 19, 2003; for the avoidance of doubt, the refund provisions of
     Section 3.4 of the Refundable Cross Deposit Agreement shall apply to each
     of these first xxxxx wafers;

(b)  during the IBM's Supplemental Prepaid Capacity Period, the price of the
     next xxxxx wafers supplied by Chartered to IBM under all agreements
     collectively in each calendar quarter shall be xxxxx, subject however, in
     the case of products supplied by Chartered to IBM under the IBM Fabrication
     Subcontract Agreement between the Parties and effective as of December 19,
     2003, to the provisions on pricing in such IBM Fabrication Subcontract
     Agreement between the Parties and effective as of December 19, 2003; for
     the avoidance of doubt, the refund provisions of Section 3.4 of the
     Refundable Cross Deposit Agreement shall not apply to each of these next
     xxxxx wafers; for the further avoidance of doubt, if IBM's Prepaid Capacity
     Deposit has been fully refunded pursuant to Section 3.4 of the Refundable
     Cross Deposit Agreement, then this subparagraph (b) shall, instead, apply
     to the first xxxxx wafers supplied by Chartered to IBM under all agreements
     collectively in each calendar quarter falling in IBM's Supplemental Prepaid
     Capacity.

(c)  during IBM's Supplemental Prepaid Capacity Period, the price of all
     additional wafers supplied by Chartered to IBM under all agreements
     collectively in each calendar quarter shall be determined in accordance
     with xxxxx, subject however, in the case of products supplied by Chartered
     to IBM under the IBM Fabrication Subcontract Agreement between the Parties
     and effective as of December 19, 2003, to the provisions on pricing in such
     IBM Fabrication Subcontract Agreement between the Parties and effective as
     of December 19, 2003; for the avoidance of doubt, (i) the refund provisions
     of Section 3.4 of the Refundable Cross Deposit Agreement shall not apply to
     any of such additional wafers, and (ii) IBM shall not be obliged to make
     any IBM's Supplemental Prepaid Capacity Deposit in connection with any of
     such additional wafers.

4.   EXTENSION OF IBM'S SUPPLEMENTAL PREPAID CAPACITY PERIOD

     In the event that, after three (3) years have lapsed from the first day of
     the calendar quarter period in which IBM first purchases from Chartered
     more than xxxxx wafers under all agreements collectively, IBM has purchased
     from Chartered less than xxxxx wafers in that three (3)-year period at the
     price(s) determined in accordance with Section 3(b) of this Supplemental
     Agreement, the IBM's Supplemental Prepaid Capacity Period shall be
     continued for a further one (1) year. During such fourth year of IBM's
     Supplemental Prepaid Capacity Period, if applicable, if IBM desires to
     purchase, at a price of xxxxx, more than xxxxx wafers to complete purchase
     of a cumulative total of xxxxx wafers at such price, then IBM and Chartered
     shall discuss and then agree on a mutually acceptable solution.

5.   REFUNDABILITY OF DEPOSIT

5.1  In the event that either the IBM Fabrication Subcontract Agreement between
     the Parties and effective as of December 19, 2003 or the Manufacturing
     Agreement

<PAGE>

     No.001254 made between the Parties and effective as of January 31, 2003 is
     lawfully terminated by IBM, or in the event the Refundable Cross Deposit
     Agreement is lawfully terminated by IBM under Sections 8.1(b), 8.1(c),
     8.1(f), 8.1(g) or 8.1(i), then the IBM's Supplemental Capacity Deposit made
     pursuant to this Supplemental Agreement shall be refunded by Chartered to
     the following extent:

     R = xxxxx - N  x  xxxxx
         ---------
           xxxxx

     where

     "R" is the dollar value of the portion of IBM's Supplemental Prepaid
     Capacity Deposit to be refunded; and

     "N" is the aggregate number of wafers sold by Chartered to IBM during the
     IBM's Supplemental Prepaid Capacity Period at the price(s) determined in
     accordance with Section 3(b) of this Supplemental Agreement. For purposes
     of this equation, the maximum value for N is xxxxx.

6.   INCORPORATION BY REFERENCE

     Sections 8, 9, 10, 11,12 and 13 of the Refundable Cross Deposit Agreement
     are incorporated by reference into this Supplemental Agreement and shall
     apply to this Supplemental Agreement as if set out in full herein.

IN WITNESS WHEREOF the Parties have hereunto entered into this Supplemental
Agreement as at the date first above written.

/s/ Chia Song Hwee
------------------
Name:  Chia Song Hwee
Title: President and Chief Executive Officer
       for and on behalf of
       CHARTERED SEMICONDUCTOR MANUFACTURING LTD

/s/ Dr. John Kelly, III
-----------------------
Name:  Dr John Kelly, III
Title: Senior Vice President and Group Executive, Technology Group
       for and on behalf of
       INTERNATIONAL BUSINESS MACHINES CORPORATION<PAGE>
                                                                  Execution Copy

                                                                    Exhibit 4.58

                       DATED THE 1ST DAY OF NOVEMBER 2002

                                     Between

                         SINGAPORE TECHNOLOGIES PTE LTD
                                     (STPL)

                                       and

                    CHARTERED SEMICONDUCTOR MANUFACTURING LTD
                                    (Company)

                 ==============================================

                             SUPPLEMENTAL AGREEMENT

                                     TO THE

                ST GROUP MANAGEMENT & SUPPORT SERVICES AGREEMENT

                              DATED 1 NOVEMBER 1999

                 ==============================================
<PAGE>
TABLE OF CONTENTS

<TABLE>
<CAPTION>

         CONTENTS                                                           PAGE
<S>      <C>                                                                <C>
1.       INTERPRETATION                                                       3

2.       AMENDMENTS TO ST GROUP MANAGEMENT & SUPPORT SERVICES AGREEMENT       3

3.       INCORPORATION                                                        4

4.       PARTIAL INVALIDITY                                                   4

5.       EFFECTIVE DATE                                                       4

6.       GOVERNING LAW AND ARBITRATION                                        4

APPENDIX - COMPUTATION OF CONSIDERATION                                       5
</TABLE>

                                       2
<PAGE>
THIS SUPPLEMENTAL AGREEMENT is made on the 1st day of November 2002 BETWEEN:-

(1)  SINGAPORE TECHNOLOGIES PTE LTD, a company incorporated in Singapore and
having its registered office at 51 Cuppage Road #09-01 StarHub Centre, Singapore
229469 ("STPL"); and

(2)  CHARTERED SEMICONDUCTOR MANUFACTURING LTD, a company incorporated in
Singapore and having its registered office at 60 Woodlands Industrial Park
Street 2, Singapore 738406 (the "Company").

and is supplemental to the ST Group Management & Support Services Agreement (the
"ST Group Management & Support Services Agreement") dated 1 November 1999
entered into between (1) STPL and (2) the Company.

STPL and the Company shall hereinafter be individually referred to as a "Party"
and collectively, as the "Parties".

     WHEREAS:-

A.   The Parties have signed the ST Group Management & Support Services
Agreement whereby STPL has agreed to render to the Company, and the Company has
agreed to accept from STPL, the Services for the Consideration and upon the
terms and conditions set out in the ST Group Management & Support Services
Agreement.

B.   Pursuant to Clause 2.1 of the ST Group Management & Support Services
Agreement, the Parties have agreed to vary the Services and the method and basis
of determination of the Consideration on the terms and subject to the conditions
of this Supplemental Agreement.

     In consideration of the mutual covenants contained herein, the Parties
hereby agree as follows:-

1.   INTERPRETATION

1.1  This Supplemental Agreement shall be construed as one with the ST Group
Management & Support Services Agreement and except as otherwise provided in this
Supplemental Agreement, all terms and references used in the ST Group Management
& Support Services Agreement and which are defined or construed in the ST Group
Management & Support Services Agreement but are not defined or construed in this
Supplemental Agreement, shall have the same meaning and construction in this
Supplemental Agreement as in the ST Group Management & Support Services
Agreement.

1.2  References to "Clause" and "Appendix" are to be construed as references to
the clauses of, and appendices to, the ST Group Management & Support Services
Agreement.

1.3  The headings in this Supplemental Agreement are inserted for convenience
only and shall be ignored in construing this Supplemental Agreement.

2.   AMENDMENTS TO ST GROUP MANAGEMENT & SUPPORT SERVICES AGREEMENT

     The Parties agree, subject to the provisions of this Supplemental
Agreement, that the ST Group Management & Support Services Agreement be and is
hereby amended, by deleting the existing Appendix thereto and replacing it with
the following new Appendix attached hereto.

3.   INCORPORATION

3.1  Except to the extent expressly amended by the provisions of this
Supplemental Agreement, the terms and conditions of the ST Group Management &
Support Services Agreement are hereby confirmed and shall remain in full force
and effect.

                                       3
<PAGE>
3.2  The ST Group Management & Support Services Agreement and this Supplemental
Agreement shall be read and construed as one document and this Supplemental
Agreement shall be considered to be part of the ST Group Management & Support
Services Agreement, and without prejudice to the generality of the foregoing,
where the context so allows references in the ST Group Management & Support
Services Agreement to "this Agreement" shall be read and construed as references
to the ST Group Management & Support Services Agreement as amended and
supplemented by this Supplemental Agreement.

4.   PARTIAL INVALIDITY

     The illegality, invalidity or unenforceability of any provision of this
Supplemental Agreement under the law of any jurisdiction shall not affect its
legality, validity or enforceability under the law of any other jurisdiction nor
the legality, validity or enforceability of any other provision.

5.   EFFECTIVE DATE

     This Supplemental Agreement shall take effect from the date hereof.

6.   GOVERNING LAW AND ARBITRATION

6.1  This Supplemental Agreement shall be governed by and construed in
accordance with, the laws of Singapore.

6.2  Any dispute arising out of or in connection with this Supplemental
Agreement including any question regarding its existence, validity or
termination, shall be referred to and finally resolved by arbitration in
Singapore in accordance with the Arbitration Rules of the Singapore
International Arbitration Centre ("SIAC Rules") for the time being in force,
which SIAC Rules are deemed to be incorporated by reference into this Clause.

     IN WITNESS WHEREOF the parties hereto have set their hands the day and year
first abovewritten.

<TABLE>
<S>                                         <C>
STPL
SIGNED By                                   )
                                            )
for and on behalf of                        ) /s/ Teo Soon Hock
SINGAPORE TECHNOLOGIES PTE LTD              ) Group Financial Controller
in the presence of:                         )
                       /s/ Josephine Ng
                       Finance Manager

The Company
SIGNED By                                   )
                                            )
for and on behalf of                        ) /s/ George Thomas
CHARTERED SEMICONDUCTOR MANUFACTURING LTD   ) Vice President and Chief Financial
                                            ) Officer
in the presence of:                         )
                      /s/ Keshmira Irani
                      Finance Manager
</TABLE>

                                       4
<PAGE>
APPENDIX

COMPUTATION OF CONSIDERATION

The Consideration payable to STPL shall be calculated on the following basis :

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------
S/N   DESCRIPTION OF SERVICES                       FEE BASIS                           AMOUNT
                                                                                        (S$'000)
---------------------------------------------------------------------------------------------------
<S>   <C>                                           <C>                                 <C>
1     Executive Resource Support
      Comprising support provided to CSM            Total basic headcount cost of       210
      Executive Resource and Compensation           STPL Executive Resource
      Committee ("ERCC") in the design and          Department ("STPL ER") multiplied
      implementation (including benchmarking) of    by a factor of 1.8 divided by the
      compensation structure for executives, and    total number of companies STPL ER
      together with CSM, support to CSM ERCC in     is providing this Service to.
      the implementation of decisions and support
      for administration of compensation of
      executives under CSM ERCC.
---------------------------------------------------------------------------------------------------
2     Internal Audit
      Comprising continuing audit plans,            2 equivalent headcount cost         220
      monitoring statutory compliance and
      compliance with relevant procedures and
      policies.
---------------------------------------------------------------------------------------------------
3     Finance
      Comprising treasury related activities,       2 equivalent headcount cost         350
      risk management, and accounting systems,
      policies, guidelines and procedures
---------------------------------------------------------------------------------------------------
4.    Information Technologies
                                                    Based on reimbursement of its       520
                                                    share of group wide licences and
                                                    IT infrastructure e.g. Lotus
                                                    Notes,  Frango
---------------------------------------------------------------------------------------------------
5.    STPL Franchise
      Comprising benefits derived from the STPL     Based on 0.25% of Group Sales or
      global network and affiliation to STPL, and   S$5 million, whichever is lower.    4,700

      Financial leverage such as bank guarantee     Based on 0.5% of ST Financial
      support, provision of standby credit          Support or S$5 million, whichever
      facilities, improved credit rating, easier    is lower.
      access to funding and lower cost of
      borrowing.
---------------------------------------------------------------------------------------------------
GRAND TOTAL                                                                             6,000
---------------------------------------------------------------------------------------------------
</TABLE>

                                       5
<PAGE>
Where :

CSM means the Company.

Group Sales means the actual sales of the Company and its subsidiaries
worldwide. As the Consideration is payable in advance, the Consideration for
this Service shall be determined based on the planned sales of the Company and
its subsidiaries worldwide at the beginning of the year, and at the end of the
year, the final Consideration payable for such Service shall be determined based
on the actual sales. STPL shall refund to the Company any excess payment and the
Company shall make payment to STPL of any shortfall in payment within fourteen
(14) days after the determination of the final Consideration payable for such
Service shall be determined based on the actual sales. STPL shall refund to the
Company any excess payment and the Company shall make payment to STPL of any
shortfall in payment within fourteen (14) days after the determination of the
final Consideration payable for such Service.

ST Financial Support means the projected annual average outstanding amount of
(a) standby credit facilities provided by STPL to the Company and (b) guarantee
facilities provided by STPL to third parties to secure loans granted by such
third parties to the Company.

For the avoidance of doubt, the headcount cost allocated in the Appendix above
shall be applicable for from the date hereof and shall be adjusted upon mutual
agreement.

                                       6

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