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STMicroelectronics, STATS ChipPAC and Infineon to Set New Milestone in Establishing Wafer-Level-Packaging Industry Standard


Leading semiconductor makers team up with advanced packaging provider to jointly develop next-generation of eWLB wafer-level packaging technology

Geneva, Singapore and Neubiberg, Germany, August 2008 - STMicroelectronics (NYSE: STM), STATS ChipPAC (SGX-ST: STATSChP), and Infineon Technologies AG (FSE/NYSE: IFX) today announced that they have signed an agreement to jointly develop the next-generation of embedded Wafer-Level Ball Grid Array (eWLB) technology, based on Infineon’s first-generation technology, for use in manufacturing future-generation semiconductor packages.

ST and Infineon, two of the world’s leading semiconductor makers, have joined forces with STATS ChipPAC, a leader in advancthree dimensional (3D) packaging solutions, to fully exploit the potential of Infineon’s existing eWLB packaging technology, which has been licensed by Infineon to ST and STATS ChipPAC. The new R&D effort, for which the resulting IP will be owned by the three companies, will focus on using both sides of a reconstituted wafer to provide solutions for semiconductor devices with a higher integration level and a greater number of contact elements.

The eWLB technology uses a combination of traditional ‘front-end’ and ‘back-end’ semiconductor manufacturing techniques with parallel processing of all the chips on the wafer, leading to reduced manufacturing costs. This together with the increased level of integration of the silicon’s overall protective package, in addition to a dramatically higher number of external contacts, means the technology can provide significant cost and size benefits for makers of cutting-edge wireless and consumer products.

ST’s decision to work with Infineon to jointly develop and use this innovative technology, with its greater integration level of package size, marks an important milestone for eWLB on its way to becoming an industry standard for cost-efficient and highly integrated wafer-level packages. ST plans to use the technology in several products of its ST-NXP Wireless joint venture and in other application markets, with first samples expected by the end of 2008 and production by early 2010.

”The eWLB technology is an excellent complement for our next-generation leading-edge products, especially in wireless applications,” stated Carlo Cognetti, Director, Advanced Packaging Technology, STMicroelectronics. “The eWLB technology sets new milestones in innovation, cost competitiveness and dimensions and we believe that, together with Infineon, we will pave the way to a new powerful package technology platform.”

“We are pleased that ST has selected our trend-setting eWLB technology for its IC packaging and see this partnership as a great recognition for the excellence of our technology,” stated Wah Teng Gan, Vice President of Assembly & Test at Infineon Asia Pacific. “With ST as a new partner, and furthermore STATS ChipPAC as a well-known leader in 3D packaging solutions acknowledging our technology, we see a shift in the packaging industry towards the energy efficient and high-performance eWLB technology.”

“We are very pleased that Infineon and ST have selected STATS ChipPAC as a joint development partner to develop the next generation of eWLB technology and to manufacture products on both generations of eWLB technology,” said Dr. Han Byung Joon, Executive Vice President and Chief Technology Officer, STATS ChipPAC. “The depth of technical expertise at Infineon and ST, combined with the knowledge we have on driving integration technology and flexibility at the silicon level, are essential to delivering this breakthrough technology.”
STATS ChipPAC Ltd- Forward-looking Statements
Certain statements in this release are forward-looking statements that involve a number of risks and uncertainties that could cause actual events or results to differ materially from those described in this release. Factors that could cause actual results to differ include, but are not limited to, general business and economic conditions and the state of the semiconductor industry; level of competition; demand for end-use applications products such as communications equipment and personal computers; decisions by customers to discontinue outsourcing of test and packaging services; our reliance on a small group of principal customers; our continued success in technological innovations; pricing pressures, including declines in average selling prices; availability of financing; prevailing market conditions; our ability to meet the applicable requirements for the termination of registration under the Exchange Act; our ability to meet specific conditions imposed for the continued listing or delisting of our ordinary shares on the Singapore Exchange Securities Trading Limited (SGX-ST); our substantial level of indebtedness; potential impairment charges; delays in acquiring or installing new equipment; adverse tax and other financial consequences if the South Korean taxing authorities do not agree with our interpretation of the applicable tax laws; our ability to develop and protect our intellectual property; rescheduling or canceling of customer orders; changes in our product mix; intellectual property rights disputes and litigation; our capacity utilization; limitations imposed by our financing arrangements which may limit our ability to maintain and grow our business; changes in customer order patterns; shortages in supply of key components; disruption of our operations; loss of key management or other personnel; defects or malfunctions in our testing equipment or packages; changes in environmental laws and regulations; exchange rate fluctuations; regulatory approvals for further investments in our subsidiaries; majority ownership by Temasek Holdings (Private) Limited “Temasek” that may result in conflicting interests with Temasek and our affiliates; unsuccessful acquisitions and investments in other companies and businesses; labor union problems in South Korea; uncertainties of conducting business in China and other countries in Asia; natural calamities and disasters, including outbreaks of epidemics and communicable diseases; and other risks described from time to time in the Company’s SEC filings, including its annual report on Form 20-F dated March 7, 2008. You should not unduly rely on such statements. We do not intend, and do not assume any obligation, to update any forward-looking statements to reflect subsequent events or circumstances.


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