SOURCE: STATS ChipPAC

November 24, 2008 16:00 ET

STATS ChipPAC Expands QFN Portfolio to Deliver Increased Functionality and Design Flexibility in a Thin Package Profile

New Strip Etch QFN Version Supports a Wide Range of Die Sizes, Die Stacking and Higher I/O

SINGAPORE -- 11/25/2008, UNITED STATES--(Marketwire - November 24, 2008) - STATS ChipPAC Ltd. ("STATS ChipPAC" or the "Company") (SGX-ST: STATSChP) (SES: S24), a leading semiconductor test and advanced packaging service provider, today announced it has expanded its Quad Flat No-lead (QFN) packaging portfolio with a strip etch version for applications requiring increased design flexibility and higher input/output (I/O) performance in a small, thin package profile.

The new QFN package family, referred to as QFNs-se, features a significantly higher number of very thin I/O terminal pads as compared to conventional single or dual row QFN or leadframe-based Quad Flat Packages (QFP). The QFNs-se can accommodate three or more rows of terminals in a fine fixed or variable pitch, providing a wider pin count range of 50 to 250 I/O as compared to standard QFN packages which have 4 to 156 I/O. The QFNs-se is also considered to be a cost effective alternative to lower ball count Fine Pitch Ball Grid Array (FBGA) packages.

The QFNs-se is available in a lead pitch as low as 0.40mm with a nominal package profile height of 0.55mm. The key to the increased performance and design flexibility of the QFNs-se is the strip etch process used to make this QFN type. The leadframe is completely removed during the strip etch process, achieving more space within the mold cap to allow for thicker die or stacked die configurations. The terminal pads are plated on the leadframe before it is removed, allowing increased flexibility in terminal pitch, combining terminals and connecting terminals to the exposed die paddle. The QFNs-se can accommodate a wide range of die sizes and die stacking without increasing the final body size.

"QFN packages have proven to be very successful for a number of applications requiring good thermal and electrical performance in a small package format. Over time, the QFN package portfolio has expanded to include finer terminal pitch, two peripheral rows and body sizes over 10mm x 10mm in order to handle a variety of applications. QFNs-se represents the next evolution of the QFN portfolio to handle even more pin count and, combined with die shrinks enabled by the advancement of wafer fabrication technology, provides a smaller footprint and lower cost alternative to QFP and certain FBGA type packages," said Dr. Han Byung Joon, Executive Vice President and Chief Technology Officer, STATS ChipPAC.

With QFNs-se, customers have more options such as singulated unit test process or strip test process. Testing multiple devices simultaneously in a strip format offers a reduction in production cycle time and a lower cost of test.

The QFNs-se is particularly well suited for use in wireless handset, handheld consumer products, RF and analog devices, power management, storage products and other similar applications.

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.

About STATS ChipPAC Ltd.

STATS ChipPAC Ltd. is a leading service provider of semiconductor packaging design, assembly, test and distribution solutions in diverse end market applications including communications, digital consumer and computing. With global headquarters in Singapore, STATS ChipPAC has design, research and development, manufacturing or customer support offices in 10 different countries. STATS ChipPAC is listed on the SGX-ST. Further information is available at www.statschippac.com. Information contained in this website does not constitute a part of this release.

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