Chips and Technologies enters manufacturing agreement with Samsung; partnership gives Chips guaranteed access to leading-edge submicrom fab capacity.

SAN JOSE, Calif.--(BUSINESS WIRE)--Jan. 8, 1996--Chips and Technologies, Inc. announced today that it has completed a new two-year agreement with Samsung Semiconductor, Inc. to provide integrated circuit fabrication capacity for Chips' present and future product lines.

Extending an ongoing seven-year partnership, the new agreement guarantees Chips access to advanced submicron process technology in volume manufacturing.

"As Chips launches significant new products in the next twelve months, this agreement provides us with the leading-edge process capability only a world-class IC manufacturer can supply," said Jim Stafford, president of Chips and Technologies. "It not only gives us the capability to meet demand for our present product lines, particulary our flat panel graphics controllers used in many of the industry's highest performance notebook computers, but also allows us to plan for volume production of our new products."

Chips' product development schedule includes new high-performance graphics controllers with enhanced video capabilities for portable systems and chipsets built around a unique unified memory architecture.

Samsung, the world's largest producer of memory devices and the seventh largest IC manufacturer overall, manufactures ASICs, DRAMs, SRAMs, ROMs, flash memories, and LCD controllers. The company operates eleven fabs in Korea and plans to build three more over the next five years, including its first in the United States.

"Samsung offers deep submicron ASIC capability including 0.6 um and 0.5 um and beyond, with the ability to include value added core cell blocks developed by its technology and manufacturing partners," said H.K. Park, senior executive managing director for Samsung.

"This agreement is a positive step for both companies," said Park. "We gain a commitment from a trusted, long-term customer that helps us plan utilization of our fabs. Chips and its customers gain the assurance that Chips' products will be manufactured at leading-edge, sub-micron facilities with the quality and reliability that only come from a world-class supplier."

About Chips and Technologies

Chips and Technologies, Inc. (NASDAQ:CHPS) is a fabless supplier of highly integrated semiconductor and software solutions which provide graphics, video and other capabilities to portable and desktop computers. -0-

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