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Chartered Uses "Communications-Smart" Approach to Deliver 0.13-Micron Capability

Leading foundry to offer more SOC capacity for high performance applications
MILPITAS, CA and SINGAPORE, September 19, 2000 - Chartered Semiconductor Manufacturing (Nasdaq:CHRT and SGX-ST:Chartered), one of the world's top three silicon foundries, today detailed major milestones and capabilities for its 0.13-micron manufacturing process. The 0.13-micron technology offering includes a suite of application-specific transistor options that are optimized for key communications solutions. The first in a series of technology platforms targeting performance-driven systems on chip, the all-copper, low-k dielectric 0.13-micron process will be ready for early adopter customers in the fourth quarter of this year, prototype designs in the second quarter of 2001, and ramp up to pilot production one quarter later.
This announcement follows the August disclosure of the Company's strategic alliance with communications semiconductor leader Lucent Technologies Microelectronics Group. A joint Bell Labs and Chartered team of R&D engineers are tuning the Chartered 0.13-micron process to the rigorous performance, silicon density, and reliability requirements of communications applications. Chartered believes its "communications-smart" approach to silicon manufacturing will produce robust, reliable solutions that are especially well suited for communications products, as well as consumer and peripheral electronics.
Dr. John Martin, Chartered's chief technology officer, described the new 0.13-micron process at the Company's annual Technology Forum in Santa Clara, California today, and also revealed preliminary research and development results for its multi-generation roadmap down to 0.08-micron.

The New Frontier
"Simply providing state-of-the-art process geometries is no longer enough of a competitive edge, nor is it a long-term customer strategy," said Jim Feldhan, president of Semico Research and the keynote speaker at Chartered's Technology Forum. "Chartered is taking a progressive approach by focusing on specific market segments. They have lined up the right partners and have the right technical vision to service customers in dynamic markets like broadband communications, wireless and networking."
Echoing this point, Chartered's president and CEO Barry Waite told Technology Forum attendees, "The industry is on the verge of a whole new frontier of opportunity fueled in large part by the communications revolution. Winning the time-to-production, time-to-market, and time-to-revenue race requires that today's pioneers reshape business models, forge new alliances, and initiate unprecedented levels of collaboration."

Primed for System-on-Chip
Building on both Chartered's proven practice of offering plug-in modules for baseline technology and the application expertise of Lucent's Bell Labs developers, customers will benefit from communications-smart modules for embedded memory, mixed-signal, and/or RFCMOS applications. Key features include a high-speed option targeted at the broadband data communications segment, as well as a low-power, low-leakage option optimized for wireless applications. The RFCMOS and mixed-signal offering is a continuation of Chartered's comprehensive roadmap for emerging Bluetooth market solutions. It will also be supported by Chartered's global network of electronic design automation (EDA) partners.
"In-depth analysis proves that Chartered's 0.13-micron technology is primed for system on chip. The device and interconnect design rules are excellent. They enable maximum gate-packing density and very high utilization, so you can put lots of transistors on a single chip. Our studies yielded calculations in the range of 260,000 raw gates per square mm, which in our experience, is close to the practical limit of 0.13-micron solutions," said Tushar Gheewala, president and CEO of In-Chip Systems, Inc., a silicon architecture company.
"The communications segment of the semiconductor industry is the fastest growing, and is also the most demanding in terms of expertise, reliability, and quality. We targeted this segment as the benchmark for ensuring that our foundation technology for system on chip meets the needs of the full spectrum of high performance applications across market segments," added Chartered's Dr. Martin.
Since 1997, Chartered has seen an increasing percentage of its production shift to communications-related markets, with shipments to companies in this segment accounting for 52 percent of revenues for the 12 months ending June 2000.

About Chartered

Chartered Semiconductor Manufacturing is one of the world's top three silicon foundries. The Company's business model is distinguished by its strategy to build trusted long-term relationships, where manufacturing is part of a larger customer-service focus that includes joint development and implementation of new process technologies supporting novel applications within the broad communications market. Chartered operates five semiconductor fabrication facilities at its Singapore headquarters, with a sixth fab under construction.
A company with both global presence and perspective, Chartered is traded on both the Nasdaq Stock Market in the United States (NASDAQ:CHRT) and on the Singapore Exchange Securities Trading Limited in Singapore (SGX-ST:CHARTERED). The Company reported 1999 revenues of US$694.3 million. More than 3400 Chartered employees are based at 11 locations around the world.

Chartered Safe Harbor Statement under the provisions of the United States Private Securities Litigation Reform Act of 1995
This news release contains forward-looking statements, as defined in the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements, including without limitation, the statements relating to the availability of Chartered's 0.13-micron technology process, the appropriateness of its business strategy and technology roadmap reflect our current views with respect to future events and are subject to certain risks and uncertainties which could cause actual results to differ materially from those anticipated. For example, changes in the market outlook, customer demand, and the availability of materials, equipment and manpower could affect the above-mentioned forward-looking statements. Although Chartered believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be attained. A description of certain of the risks and uncertainties which could cause actual results to differ materially from those indicated in the forward-looking statements can be found in the section captioned "Risk Factors" in the Chartered's Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission. Chartered undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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