ChipPAC Inc. to Introduce Full Ball Grid Array Capability in China Facility; Rapid Growth in China for BGAs, CSPs and Lead Frame Products Solidifies Expansion Needs.

SANTA CLARA, Calif.--(BUSINESS WIRE)--Nov. 23, 1999--

In a strategic move to expand its product offering and foresee the growing needs of its customers, ChipPAC Inc. plans to roll out full Ball Grid Array (BGA) capabilities in China in 2000.

ChipPAC's semiconductor assembly and test facility in Shanghai, China, will use its 400,000-plus sq. ft. facility to accommodate the addition of the BGA line. This expansion of capabilities will strengthen ChipPAC's leadership position in advanced laminate products that address a wide variety of packaging needs and markets. The addition of BGA will serve both the export and domestic China markets.

"We attribute our accelerated capacity expansion in China to the strengthening semiconductor market worldwide. Coupled with the industry upturn is the growing need and potential for increased local China content in products for the domestic China market. The future demand for local China content aligns perfectly with our presence in Shanghai," said Dennis McKenna, ChipPAC president & CEO.

The introduction of full BGA capabilities in ChipPAC Shanghai complements the company's overall plan to be a key player in the rapidly growing China electronics market.

"Introducing BGA capability in our China facility gives our customers a complete offering of benefits. These benefits include short and responsive supply chains to electronics manufacturers in local markets and lower cost structure. It also gives our customers a second assembly source, in addition to our ChipPAC Korea facility. We consider this a substantial value-add for ChipPAC's global customers," said Satya Chillara, Director of Laminate Products for ChipPAC.

Over the next two years, ChipPAC Shanghai plans to offer a full range of standard and advanced packaging (such as CSP) and test capabilities in coordination with the needs of its major, global customers. Significant market expansion is expected in new classes of mobile and portable electronic devices, IC-cards and computer product markets served by ChipPAC and its customers.

Since its opening in 1995, the ChipPAC Shanghai facility has benefited from the growing base of local suppliers, high caliber workforce, and supportive government programs that have encouraged a competitive business environment.

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 lead frame 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, with 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. Visit www.chippac.com for complete information.