Fairchild Semiconductor Officially Opens Assembly and Test Facility in Suzhou, China.

Business Editors/High-Tech Writers

SUZHOU, China--(BUSINESS WIRE)--Sept. 29, 2003

State-of-the-Art Facility Expands Back End Manufacturing

Capabilities While Reducing Outsourcing Costs

Fairchild Semiconductor (NYSE: FCS), one of the largest global suppliers of high performance products that optimize system power in multiple end markets, today officially opened the first phase of its 800,000 square foot assembly and test facility and automated warehouse in Suzhou, China. This facility is a key element of the company's global strategy to more than double sales in China by 2004, and the new factory will produce products for both the local China market and for export to the rest of Asia, Europe and the Americas.

"This state-of-the-art facility is a crucial element in supplying our customers with the right products at the right time for their next generation applications," said Kirk Pond, Fairchild's president, CEO and chairman of the Board. "We recognized China as a growing force in the global semiconductor market several years ago, both in consumption of IC's and in the design and manufacture of electronic products, and moved quickly to position ourselves. I'm very pleased that the first completely new facility built by Fairchild is in China."

Fairchild has solidified its focus on China by:

-- expanding alliances with key design houses to develop systems

reference designs;

-- increasing market penetration in the key high-growth market

sectors;

-- realigning product line resources to focus on China;

-- launching leading edge products for target segments;

-- strengthening the sales and marketing efforts locally with the

ultimate establishment of eight offices in China; and

-- establishing three of the company's six Centers of Excellence

in Greater China to assist customers with their power design

requirements for consumer, ultra portable, cell phone and

notebook applications.

According to World Semiconductor Trade Statistics (WSTS, October 2002), the market for IC consumption in China is expected to reach $28.7 billion by 2005, a compound annual growth rate of 25.5%. iSuppli states that between 2002 and 2006 over half of the total global increase in demand for semiconductors will come from China.

The first phase of this project, comprised of 400,000 square feet of assembly/test and automated warehouse space, was completed in just over a year. More than 570 employees have been trained and are in place, currently shipping production volume to customers. Total employment is expected to reach 1,995 by 2005 and 3,500 upon completion of Phase 2. Fairchild expects to save as much as 30% on assembly and test costs with the new facility, when compared to purchasing outsourced assembly/test services.

With the new factory, Fairchild will reduce the amount of outsourced assembly and test production required, balance the company's dependence on outside contractors, ensure more effective cost control, enhance production ramps for new products, strengthen the supply and logistic channel and provide needed assembly and test capacity.

"Our Suzhou team is to be congratulated for the outstanding rate of delivery they accomplished to complete phase one of this state-of-the-art facility," said Pond. "The Suzhou plant will support our focus to provide industry-leading products that optimize system power for our global customers."

The facility is located within the China-Singapore Suzhou Industrial Park (CSSIP) in Suzhou, Jiangsu Province, China. The China-Singapore Suzhou Industrial Park is one of China's most successful industrial locations. Jiangsu Province is second only to Guangdong Province in terms of electronics production.

Fairchild Semiconductor:

Fairchild Semiconductor (NYSE: FCS) is a leading global supplier of high performance products for multiple end markets. With a focus on developing leading edge power and interface solutions to enable the electronics of today and tomorrow, Fairchild's components are used in computing, communications, consumer, industrial and automotive applications. Fairchild's 10,000 employees design, manufacture and market power, analog & mixed signal, interface, logic, and optoelectronics products from its headquarters in South Portland, Maine, USA and numerous locations around the world. Please contact us on the web at www.fairchildsemi.com.

Special Note on Forward-Looking Statements:

The statements in the above press release may contain forward-looking statements that are based on management's assumptions and expectations and that involve risk and uncertainty. Other forward-looking statements may also be found in this news release. Forward-looking statements usually, but do not always, contain forward-looking terminology such as "we believe," "we expect," or "we anticipate," or refer to management's expectations about Fairchild's future performance. Many factors could cause actual results to differ materially from those expressed in forward-looking statements. Among these factors are the following: changes in overall global or regional economic or political conditions (including as a result of terrorist attacks and responses to them); changes in demand for our products; changes in inventories at our customers and distributors; technological and product development risks; availability of manufacturing capacity; availability of raw materials; competitors' actions; loss of key customers; order cancellations or reduced bookings; changes in manufacturing yields or output; and significant litigation. These and other risk factors are discussed in the company's quarterly and annual reports filed with the Securities and Exchange Commission (SEC) and available at the Investor Relations section of Fairchild Semiconductor's web site at investor.fairchildsemi.com or the SEC's web site at www.sec.gov.