STATS ChipPAC’s fcCuBE® Technology Surpasses 100 Million Unit Milestone

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Reflects strong adoption in mobile applications with accelerated diversification in consumer and networking markets

Singapore – 20 August 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 it has shipped over 100 million semiconductor packages with the Company’s fcCuBE® technology, advanced flip chip packaging with fine pitch copper (Cu) column bumps, Bond-on-Lead (BOL) interconnection and enhanced assembly processes.

fcCuBE® technology is well established in the mobile market with the most significant production volume to date in small chip scale packages where the performance, size and cost benefits successfully address customer requirements in smartphones, tablets and wearable devices. The compelling performance and cost advantages of fcCuBE are also accelerating the diversification of this advanced technology into large die packages for consumer and networking applications where very high performance, reliability and processing speeds are imperative.

"The exceptional success of fcCuBE in the mobile market over the last year is a reflection of the complex performance and form factor requirements that our customers face and the clear advantages of this advanced technology. Demand for greater functionality and significantly higher processing speeds in consumer and networking devices is also driving flip chip packaging technology for ICs containing ultra low K dielectrics, very large package sizes, very fine bump pitches and lead-free solder," said Dr. Han Byung Joon, Executive Vice President and Chief Technology Officer, STATS ChipPAC. "fcCuBE has proven to be a scalable technology that cost effectively addresses the technical requirements for high performance devices."

In consumer applications such as set top boxes (STB) and digital television (DTV) ICs, higher functionality, faster data rates and increased bandwidth are required for enhanced user interfaces, rich graphics and outstanding audio quality. Wire bonding technology, a popular packaging choice in the past, is often unable to successfully address the increased thermal and electrical performance requirements for next generation consumer applications and, as a result, semiconductor companies are turning to high performance flip chip interconnect to differentiate their products. The BOL interconnection and very fine pitch Cu bumps in fcCuBE technology deliver exceptionally high I/O density and bandwidth with excellent electromigration (EM) performance for high current carrying applications such as STB and DTV ICs at a cost competitive price point for customers.

The functional and performance requirements for networking devices continue to evolve as well, driving demand for larger and thinner packages supporting very high current densities and bandwidth requirements. These high performance devices also require a steady and consistent supply of power which becomes challenging as device functionality increases. In addition, there are yield and reliability concerns that arise from the larger package sizes and very fine pitch interconnection that is required to produce higher I/O densities. fcCuBE technology significantly reduces the substrate layer count and complexity, achieving a thinner, lower cost package with high power integrity, superior control over thermal performance and higher resistance to EM over standard flip chip packages.

"Over the course of the last year, rapidly increasing density, performance and bandwidth challenges have become a driving force for customers who are looking for a powerful, cost effective flip chip technology to support their next generation mobile, consumer and networking applications," said Chong Khin Mien, Senior Vice President of Product and Technology Marketing, STATS ChipPAC. "The growth in our fcCuBE production volume is a clear vote of customer confidence in our ability to deliver an advanced packaging solution that best meets the cost and performance targets for their specific product requirements."

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; the amount of the business interruption insurance claim due to flooding of the Thailand Plant; 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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