ChipPAC & SMIC Report A Non-Exclusive Alliance

[J.A.F._Doorhof]

ChipPAC, Inc. and Semiconductor Manufacturing International Corporation (SMIC) have reported a non-exclusive alliance designed to support customers with end-to-end solutions from wafer fab to packaging and test and final distribution in China and global market. The scope of the relationship covers wafer probe, packaging, assembly and test of semiconductor devices. ChipPAC is one of the world's largest and most diversified providers of semiconductor assembly and test services. Located in Shanghai, China, SMIC is China's first advanced open-IC wafer foundry.

In 2001, SMIC completed its first round of equity financing totaling more than $1 billion and secured commitments from four Chinese banks for an additional $480 million loan. The company recently entered into pilot production producing 8-inch wafers at 0.25-micron (and below) technology, and it is expected to reach full capacity producing 85,000 8-inch wafers per month by the end of 2004. SMIC devices in the initial production phase are expected to include SRAM, ASIC RAM, LOGIC, and other kinds of chips with applications in digital TV, VCD/DVD players, mobile phone, smart IC cards, and other applications.

Richard Chang, president & CEO of SMIC, said, "Our goal is to become the premier foundry provider serving China and the global market. As we move to volume production, customers are looking to develop an efficient and reliable manufacturing supply chain. It is critical to have partners like ChipPAC, which has the scale, experience and portfolio in place to support the demands of our expected growth. ChipPAC's credentials and the company's success in China over the past five years are well recognized, we fully expect to build a long-term relationship with ChipPAC."

CONTACT:
http://www.smics.com
http://www.chippac.com