CHARTERED AND INFINEON SIGN
MULTI-YEAR VOLUME MANUFACTURING AGREEMENT
Qualification of leading semiconductor company's OptiMOS technology
slated for later this year, with volume production ramping in early 2004
SINGAPORE and MUNICH - July 9, 2003 - Chartered Semiconductor Manufacturing (NASDAQ: CHRT and SGX-ST: Chartered), one of the world's top three dedicated semiconductor foundries, today announced it has signed a multi-year agreement to provide volume manufacturing for Infineon Technologies AG (FSE/NYSE: IFX).
The manufacturing agreement includes Infineon's OptiMOS technology, with potential extension to its CoolMOS technology. These processes are used to manufacture power MOSFETs, which are employed in a variety of computer, communications, consumer, industrial and automotive applications, where fast switching of high voltage or high current is required. The OptiMOS process fits well within the tooling capabilities of Chartered's Fab 2, but involves significantly fewer masking layers than a typical CMOS process flow. The price per wafer is accordingly lower than that for the usual CMOS products run in Fab 2.
As part of its capacity extension plans, Infineon will initially transfer its OptiMOS technology process to Fab 2, where it is scheduled to be qualified by the end of 2003. Volume production is scheduled to ramp in 2004. As part of the agreement, Chartered will also supply non-OptiMOS technologies to Infineon.
"We are looking forward to a successful partnership with Chartered. Such cooperations are an important part of our capacity extension plans and enhance our ability to meet the increasing demand for Power Management & Supply devices," said Loh Kin Wah, President & Managing Director of Infineon's Asia-Pacific Operations.
"Chartered is pleased that another of the world's leading semiconductor companies has selected Chartered as its long-term manufacturing partner, and we are excited about our new agreement with Infineon," said Bruno Guilmart, senior vice president of worldwide sales and marketing at Chartered. "More and more, semiconductor companies are looking for a foundry partner that can provide flexible and reliable outsourcing solutions, and our agreement with Infineon reflects our ability to respond to the needs of industry leaders. And through volume manufacturing agreements like this one, Chartered continues to execute to our strategic plan to enhance our growth potential in the area of mature capacity and improve our cost structure as we continue our return to profitability."
About Chartered
Chartered Semiconductor Manufacturing, one of the world's top three dedicated semiconductor foundries, is forging a customized approach to outsourced semiconductor manufacturing by building lasting and collaborative partnerships with its customers. The Company provides flexible and cost-effective manufacturing solutions for customers, enabling the convergence of communications, computing and consumer markets. In Singapore, Chartered operates five fabrication facilities and has a sixth fab, which will be developed as a 300mm facility.
A company with both global presence and perspective, Chartered is traded on both the Nasdaq Stock Market (Nasdaq: CHRT) and on the Singapore Exchange (SGX-ST: CHARTERED). Chartered's 3,500 employees are based at 11 locations around the world. Information about Chartered can be found at www.charteredsemi.com.
About Infineon Technologies
Infineon Technologies AG, Munich, Germany, offers semiconductor and system solutions for the automotive and industrial sectors, for applications in the wired communications markets, secure mobile solutions as well as memory products. With a global presence, Infineon operates in the US from San Jose, CA, in the Asia-Pacific region from Singapore and in Japan from Tokyo.
In the fiscal year 2002 (ending September), the company achieved sales of Euro 5.21 billion with about 30,400 employees worldwide.
Infineon is listed on the DAX index of the Frankfurt Stock Exchange and on the New York Stock Exchange (ticker symbol: IFX). Further information is available at www.infineon.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 United States Private Securities Litigation Reform Act of 1995. These forward-looking statements, including without limitation statements relating to the scope of the technology used under the manufacturing agreement; the qualification and timing thereof of OptiMOS technology and the timing for volume production are subject to certain risks and uncertainties, which could cause actual results to differ materially from historical results or those anticipated. For example, changes in the market outlook, specifically in the foundry services; customer demands, the successful implementation of our alliance with Infineon; the successful qualification of technology under the multi-year agreement; the performance level of our fabrication facilities 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 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.
