Dongbu Electronics Leads Worldwide Foundry Industry in Developing 130nm NOR Flash Memory Wafer Process; Volume Wafer Production to Begin in Q3-06 for Taiwan-Based Eon Silicon Solution.

SEOUL, South Korea -- Dongbu Electronics, a global semiconductor foundry with world class wafer fabs based in South Korea, today announced that it has successfully completed the development of a NOR Flash Memory wafer process in collaboration with Eon Silicon Solution Inc. Dongbu begins volume production of 8-inch (200mm) wafers for Taiwan-based Eon using the new process in Q3-06.

"Our collaboration with Eon has been win-win all the way," asserted Dr. Jae Song, Executive Vice President of Dongbu. "While Eon has won recognition as a world-class developer of NOR Flash Memory, we can also confirm that Eon is truly a world-class strategic partner." Mr. Song noted that beginning with the 8-inch (200mm) NOR Flash wafers to be supplied to Eon in September, Dongbu anticipates ramping wafer starts of the new process at the 130nm node to 3,000 per month during 2007.

According to May Xie, VP of product and testing engineering division of Eon Silicon Solutions, "The quality of Dongbu's work is the best among all of the foundries we've worked with. Moreover, the open mindedness and positive attitude of Dongbu personnel created a productive teamwork environment."

As the first pure-play foundry to complete development of the 130nm NOR Flash process, Dongbu has underscored its strategic focus on providing specialty solutions for mobile applications. Dongbu's new process enables implementation of Flash Memory devices in 32MB, 64MB and 128MB capacities, which can operate at 3.3V. Such devices are ideally suited to serve in mobile applications as well as diverse consumer electronics products that require nonvolatile memory storage.

By the end of this year, Dongbu expects to extend its 130nm NOR Flash processing capability to support implementation of memory devices that operate at 1.8V. Volume production of this lower voltage process, which will target mobile handset applications, is expected to begin early next year.

Dongbu's processing of wafers for NOR Flash memory devices dates back to 2004. At that time, the Korean foundry initiated NOR Flash processing at the 0.18-micron mode. Production of 8-inch (200mm) wafers using this process subsequently ramped to 3,500 per month.

In addition to completing the development of the 130nm NOR Flash process, Dongbu is also focusing on expanding the production 130nm wafers for CMOS Image Sensor (CIS), High Voltage, and LCD Driver IC (LDI) devices. By enabling the production of such specialized devices at ever finer line widths, Dongbu aims to distinguish itself as the preferred "specialty solution partner" among fabless companies large and small.

About Dongbu Electronics

Dongbu Electronics provides world-class CMOS processing for system-on-chip solutions that integrate advanced logic, analog, and mixed-signal technologies. As a "Specialty Solution Partner" in high-growth markets, such as those represented by mobile handsets and flat-panel displays, Dongbu adds high value with specialized processing for CMOS Image Sensor (CIS), High Voltage, Embedded Flash, and LCD Driver IC (LDI) functions. Dongbu's collaborate-and-thrive approach is evident across the entire manufacturing spectrum including prototype development/verification, packaging/module development, complete turnkey solutions, and accelerating time to volume production. The company's stock is publicly traded under 001830 on the Korea Stock Exchange. For more information, click on http://www.dongbuelec.com.