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CHARTERED DEMONSTRATES LOW-K SEMICONDUCTOR MANUFACTURING PROCESS FOR HIGH-PERFORMANCE INTEGRATED CIRCUITS

Engineers integrate copper interconnects, low-k dielectric materials
in 0.13-micron silicon

SINGAPORE and MILPITAS, Calif. - July 16, 2001 - Chartered Semiconductor Manufacturing (Nasdaq: CHRT and SGX-ST: Chartered) today announced a new copper, low-k process for the fabrication of next-generation integrated circuits. The technology is initially targeted at semiconductors for communications applications such as high-performance optical networking and broadband data transport systems, and is also expected to be well suited for designs in computing and consumer electronics. A key deliverable of an agreement with Agere Systems to jointly develop manufacturing technologies, the new technology is scheduled for manufacture at Chartered as early as the first quarter of 2002.

Chartered has successfully integrated copper interconnects with low-k dielectric materials in a 0.13-micron technology and has demonstrated yield on a static random access memory (SRAM) test vehicle. It is expected that the system performance of chips can be improved by as much as 20 percent using this copper, low-k fabrication process.

The layout rules applied to the SRAM demonstration vehicle are approximately 5 to 10 percent tighter than current foundry offerings at the 0.13-micron node, enabling designers to realize six-transistor SRAMs with memory cells as small as 1.97µm2. The SRAM was processed using five levels of metal (up to eight are available) and employs state-of- the-art argon fluoride lithography processing at several critical levels.

"The integration and manufacturing of copper with low-k dielectric materials is complex," said Dr. John Martin, chief technology officer at Chartered. "Teams of engineers spent the last 18 months characterizing the performance, reliability and scalability of low-k materials and are now developing a manufacturing process that enables companies to build faster, more efficient systems on silicon. We're extremely pleased with the results achieved to date, and expect even better performance as the technology is scaled to support the smaller physical dimensions of advanced semiconductors. The technology provides for large and fast memories, which, along with copper and low-k, are highly desirable for the communications-networking market."

The technology has been realized using copper metalization and dielectrics systems provided by Novellus Systems. The copper low-k scheme integrates Novellus's chemical vapor deposition (CVD) low-k dielectric system with their copper barrier/seed deposition, copper plating and polymer removal systems. The dielectric constant of the CVD low-k material, known as CORALTM, is in the range of 2.7 to 2.8. This is significantly lower than the 3.6 value offered by currently available fluorinated silicate glass alternatives, which translates to a reduction in interconnect delays by as much as 20 percent.

"With interconnect delays dominating the performance of many of today's high-performance communications ICs, the advantage offered by a five level copper interconnect and low-k solution cannot be overstated," said Drs. Wilbert van den Hoek, executive vice president, integration and advanced development, Novellus Systems. "Chartered's announcement marks an important milestone towards the successful integration of copper and advanced low-k dielectrics, offering a proven platform for addressing the system requirements of leading applications at 0.13-micron and below."

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 substantially completed sixth fab that is in the process of being equipped as a 300mm facility.

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 2000 revenues of over US$1.1 billion. More than 4,300 Chartered employees are based at 11 locations around the world. Information about Chartered Semiconductor Manufacturing can be found at www.charteredsemi.com

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 U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements, including without limitation, statements relating to our collaborative efforts, qualification and production plans in connection with the above-mentioned technology, outlook for developments in the communications industry, our technology roadmap and the appropriateness of our business model and strategy, 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 historical results or those anticipated. Among the factors that could cause actual results to differ materially are: the difficulties, interruptions or unforseen delays in the implementation of our collaborative efforts, anticipated progress, qualification and production plans, the introduction of new competing technologies, or changes in market outlook and customer demand, specifically in the foundry services and communications segments. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained. In addition to the foregoing factors, a description of certain other risks and uncertainties which could cause actual results to differ materially can be found in the section captioned "Risk Factors" in our Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view of management on future events. We undertake 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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