ChipPAC, Inc. Ramps Up for Assembly and Testing of M2CSP Package to Meet the Demands of the Booming Wireless and Portable Markets.

Business Editors/High Tech Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--March 16, 2000

Cell Phones, PDA's, GPS and More Benefit from

Packaging Solution that Saves Space

ChipPAC, Inc., a leader in the subcontract assembly, packaging and test industry today announced that they are ramping up for full production of their newest space-saving package -- the M2CSP (Molded Multi-Die Chip Scale Package).

The need for more functionality in a smaller footprint has led to the creation of the M2CSP package, an approach to packaging that stacks two-or-more chips together, as opposed to the traditional one-chip method. The M2CSP package reduces the mounting space on printed circuit boards by as much as half of what is required for two conventional TSOP plastic packages. The M2CSP requires only 154mm2 mounting area on a printed circuit board, while side-by-side TSOPs require 307mm2 mounting area.

As the portable consumer electronics market, particularly cell phones, continues to grow at a healthy rate, the demand for lighter, faster, smaller and smarter products drives the industry. These ultra-small products come with their own set of challenges, primarily the packaging for the chips that run the product. ChipPAC's M2CSP addresses these challenges in an extremely cost-effective solution, utilizing ChipPAC's core competencies and expertise in this area. As an added benefit, ChipPAC customers can select the M2CSP package in any combination of options, including memory/memory, memory/logic, logic/logic, or logic/analog.

"ChipPAC is a world leader in the BGA market, having shipped over 250 million units, with yields exceeding 99.8%. Our M2CSP package is a logical extension of our highly successful BGA package line and we forecast the M2CSP to really take off, in terms of demand and popularity," said Satya Chillara, Director of Product Marketing for ChipPAC. "We are already at full scale production with 4 million M2CSP packages per month, and are in the process of expanding production to 9 million per month to meet demand. The cellular phone market, to name just one product to use the M2CSP package, is set to grow at 29% CAGR from 2000-2003. To support the cellular phone market and other consumer products that require stacked chip packages, the stacked CSP market is expected to grow at an explosive 163% CAGR from 2000-2003. ChipPAC plans to lead this growth by combining mature design rules that produce reliable, quality packages, as well as other proven procedures, with an aggressive production schedule -- with the ultimate goal of getting our customers to volume production as fast as possible."

In addition to the assembly of M2CSP packages, ChipPAC offers full testing capabilities of these packages. "We are the largest supplier in the world for CSP testing, with the most advanced platforms for testing flash and flash/logic," said JB Kim, Director of Test for ChipPAC. "We have an established infrastructure to provide the most appropriate solution for any hardware, including test sockets on CSPs. Whether a customer needs assembly and test or just the test component, ChipPAC is prepared to meet these needs."

Customers who are interested in finding out more about M2CSP packages, can visit the new on-line Customer Center on the ChipPAC website at www.chippac.com.

About ChipPAC, Inc.

ChipPAC, Inc. is one of the few assembly and test companies in the world that is a full-portfolio supplier. The company offers a full array of packaging, from basic 6-pin to 2000-pin BGA/CSP and leaded packages. These packages are offered in wire-bond and flip-chip processes. The company has 3500 employees worldwide, with sales offices in Boston, Dallas, Phoenix, San Diego, Santa Clara, Japan, Korea, Singapore and The Netherlands, and ISO 9002-certified manufacturing facilities located in Ichon, Korea, and Shanghai, China. ChipPAC headquarters are 3151 Coronado Dr., Santa Clara, California 95054, 408-486-5900. ChipPAC Inc. is first in Shaping Solutions(tm).

Visit www.chippac.com for complete information.