STATS ChipPAC’s fcCuBE® Technology Achieves Significant Growth in 2013

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Performance and cost advantages drive customer adoption and key design wins in mobile, consumer and cloud computing


Singapore – 26 February 2014

– STATS ChipPAC Ltd. (“STATS ChipPAC” or the “Company” – SGX-ST: STATSChP), a leading provider of advanced semiconductor packaging and test services, announced today that unit shipments of semiconductor packages utilising the Company’s patented fcCuBE® technology more than quadrupled in 2013 compared to 2012. The performance and cost advantages of this advanced flip chip packaging technology has driven adoption by customers in the mobile, consumer and cloud computing markets.

The most significant area of growth and adoption of fcCuBE technology to date has been in application processors, baseband processors, power management and connectivity integrated circuits (ICs) for the low to high-end mobile market as well as global positioning systems (GPS) and set top box chipsets in the consumer market. Key building blocks of this innovative flip chip technology, namely copper (Cu) column bumps and Bond-on-Lead (BOL) design and interconnection, have delivered clear advantages to customers by providing a higher routing density at a lower cost.

“With the ever increasing demand for sophisticated devices with faster processing speeds and higher input/output (I/O) in the smallest footprint possible, fcCuBE delivers a lower cost flip chip package with enhanced reliability across a wide range of configurations. The scalability of fcCuBE to support customers with progressively finer bump pitches and increasing I/O densities for advanced silicon (Si) nodes at a lower cost has been a key factor in the significant increase we have seen in our design wins. We provide customers with a strong competitive advantage in markets where the performance and cost advantages of flip chip interconnect may not have been feasible before,” said Dr. Han Byung Joon, Executive Vice President and Chief Technology Officer, STATS ChipPAC.

The advantages of fcCuBE are driving wider customer adoption from cost sensitive markets such as mobile and consumer to networking and cloud computing where increased routing density and performance are imperative. fcCuBE’s unique BOL interconnect structure provides scalability to very fine bump pitches and high I/O while alleviating stress-related chip to package interaction (CPI), a common phenomenon associated with lead free and copper column bump structures. This is particularly important for mid- to high-end networking and consumer applications such as Ethernet processor, graphics processing units (GPUs), network storage ICs, memory controllers and digital television (DTV) ICs.

An important feature of fcCuBE technology is the inherent compatibility of the basic design with both mass reflow (MR) and Thermo-Compression Bonding (TCB) processes. STATS ChipPAC’s uniquely developed MR process supports bump pitches down to 80um and below, providing customers a lower cost alternative to TCB at these pitches. TCB is utilised for more complex face-to-back or face-to-face bonding of processes necessitated by Through Silicon Via (TSV) technology.

Dr. Raj Pendse, STATS ChipPAC’s Vice President and Chief Marketing Officer noted, “The attributes of fcCuBE® technology offer our customers a scalable path for first level interconnection of new Si nodes. Furthermore, fcCuBE® complements our other flagship technologies such as fan-out wafer level packaging, providing customers the optimum solution across the full spectrum of IC designs and end 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 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; prevailing market conditions; demand for end-use applications products such as communications equipment, consumer and multi-applications and personal computers; decisions by customers to discontinue outsourcing of test and packaging services; level of competition; our reliance on a small group of principal customers; our continued success in technological innovations; pricing pressures, including declines in average selling prices; intellectual property rights disputes and litigation; our ability to control operating expenses; our substantial level of indebtedness and access to credit markets; potential impairment charges; availability of financing; changes in our product mix; our capacity utilisation; delays in acquiring or installing new equipment; limitations imposed by our financing arrangements which may limit our ability to maintain and grow our business; returns from research and development investments; changes in customer order patterns; customer credit risks; disruption of our operations; shortages in supply of key components and disruption in supply chain; inability to consolidate our Malaysia operations into our China operations and uncertainty as to whether such plan will achieve the expected objectives and results; loss of key management or other personnel; defects or malfunctions in our testing equipment or packages; rescheduling or cancelling of customer orders; adverse tax and other financial consequences if the taxing authorities do not agree with our interpretation of the applicable tax laws; classification of our Company as a passive foreign investment company; our ability to develop and protect our intellectual property; 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; labour union problems in South Korea; uncertainties of conducting business in China and changes in laws, currency policy and political instability in other countries in Asia; natural calamities and disasters, including outbreaks of epidemics and communicable diseases; the continued trading and listing of our ordinary shares on the Singapore Exchange Securities Trading Limited (“SGX-ST”). 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. (SGX-ST Code: S24) 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 throughout Asia, the United States and Europe. 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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