Chartered, IBM and Infineon Collaborate on 65nm Development Program

Aug 6, 2003 | Technology Media

Singapore, East Fishkall, N.Y., and Munich, August 6, 2003 Chartered Semiconductor Manufacturing, IBM and Infineon Technologies AG today announced a joint development agreement to accelerate the move to 65 nanometer (nm) semiconductor manufacturing process technology.

The multi-year engagement closely aligns Infineon's low-power silicon expertise with IBM's leading process technology and Chartered's efforts to drive a common foundry process platform that scales from 90nm through next-generation 65nm technology and provides a path to 45nm. Financial details of the new agreement were not disclosed.

The work will be conducted in IBM’s newly-opened East Fishkill, N.Y., 300mm development lab. IBM and Chartered technologies are among the first on 65nm circuits developed and produced in the new facility, called the Advanced Semiconductor Technology Center or ASTC 300, which began operations last month.

Nearly 200 engineers from the three companies will work together to define industry-leading process technologies for next-generation semiconductors.

"Developing advanced semiconductor technology in the ‘nano era’ is becoming increasingly challenging for the entire industry," said Dr. John E. Kelly III, senior vice president and group executive, IBM Technology Group. “Working together, IBM, Infineon and Chartered can accelerate the development of these technologies yielding 'first time right' chip designs, which will improve time-to-market and cost for our customers."

Chartered, IBM, and Infineon plan to jointly develop a common advanced foundry process at 65nm, as well as variants tuned for high performance and low power. The companies are also exploring extensions to 45nm technology.

To assist foundry customers in designing with these technologies, the companies have also agreed to work together with third-party providers to provide a robust ecosystem of optimized design tools.

Each company will have the ability to implement the jointly developed processes in its own manufacturing facilities. Both IBM and Chartered plan to have the jointly developed 65nm process installed in their respective 300mm fabs, and to be in a position to support Infineon's outsourced demand for 65nm products.

"We believe that the new alliance between IBM, Chartered and Infineon will be very powerful and will rapidly gain momentum to create the leading-edge preferred platform for advanced logic manufacturing technologies," said Dr. Andreas von Zitzewitz, COO of Infineon. "We already have more than 12 years experience in successful R&D cooperation with IBM and are pleased to continue that and look forward to the opportunity to also work with Chartered. This agreement is a further step in Infineon’s strategy to expand our alliance network with leading companies and a major step to successfully reduce cost and risk and to provide leading-edge IC process technologies in a timely manner for the benefits of our customers."

“At a time when chip companies are pressured to deliver sophisticated systems in silicon faster than ever before and get it right the first time, the initial IBM-Chartered technology platform is emerging as a compelling process platform,” said Chia Song Hwee, president and CEO of Chartered. “The joint development model is critical to keeping fabless and fab-lite companies at the leading-edge of process technologies. And, combined with our cost-effective foundry services, it provides an attractive low-risk outsourcing option for world-class IDMs like Infineon.”

About IBM Microelectronics



IBM Microelectronics is a key contributor to IBM’s role as the world’s premier information technology supplier. It develops manufactures and markets state-of-the-art semiconductor and interconnect technologies, products and services. IBM Microelectroics activities are focused in three major areas: custom application specific integrated circuit (ASIC) chips, PowerPC-based standard chip products, and high-tech foundry services. Its superior integrated solutions can be found in many of the world's best-known electronic brands.

IBM is a recognized innovator in the chip industry, having been first with advances like more power-efficient copper wiring in place of aluminum, faster silicon-on-insulator (SOI) and silicon germanium transistors, and improved low-k dielectric insulation between chip wires. These and other innovations have contributed to IBM’s standing as the number one U.S. patent holder for 10 consecutive years. More information about IBM Microelectronics can be found at: http://www.ibm.com/chips.

About Infineon Technologies



Infineon Technologies AG, Munich, Germany, offers semiconductor and system solutions for the automotive and industrial sectors, for applications in the wired communications markets, secure mobile solutions as well as memory products. With a global presence, Infineon operates in the US from San Jose, CA, in the Asia-Pacific region from Singapore and in Japan from Tokyo. In the fiscal year 2002 (ending September), the company achieved sales of Euro 5.21 billion with about 30,400 employees worldwide. Infineon is listed on the DAX index of the Frankfurt Stock Exchange and on the New York Stock Exchange (ticker symbol: IFX). Further information is available at www.infineon.com.

About Chartered



Chartered Semiconductor Manufacturing, one of the world's top three dedicated semiconductor foundries, is forging a customized approach to outsourced semiconductor manufacturing by building lasting and collaborative partnerships with its customers. The Company provides flexible and cost-effective manufacturing solutions for customers, enabling the convergence of communications, computing and consumer markets. In Singapore, Chartered operates five fabrication facilities and has a sixth fab, which will be developed as a 300mm facility.

A company with both global presence and perspective, Chartered is traded on both the Nasdaq Stock Market (Nasdaq: CHRT) and on the Singapore Exchange (SGX-ST: CHARTERED). Chartered's 3,500 employees are based at 11 locations around the world. Information about Chartered can be found at www.charteredsemi.com.

All trademarks or registered trademarks are property of their respective companies.

Chartered Safe Harbor Statement under the provisions of the United States Private Securities Litigation Reform Act of 1995 This news release contains forward-looking statements, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements, including without limitation, statements relating to our development activities with IBM and Infineon; the impact on our manufacturing capabilities and product offerings; the opportunity to jointly develop 45 nm process with IBM and Infineon; and the emergence of the IBM-Chartered technology platform as the standard process platform reflect our current views with respect to future events; and are subject to certain risks and uncertainties, which could cause actual results to differ materially from historical results or those anticipated. Among the factors that could cause actual results to differ materially are: successful implementation of our development efforts with IBM and Infineon; changes in market outlook and trends; the rate of semiconductor market

recovery; economic conditions in the United States as well as globally; customer demands; unforeseen delays or interruptions in our plans for our fabrications facilities (including Fab 7); the performance level or and technology mix in our fabrication facilities; and competition. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained. In addition to the foregoing factors, a description of certain other risks and uncertainties which could cause actual results to differ materially can be found in the section captioned "Risk Factors" in our Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view of management on future events. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Media Contacts:

Rick Bause
IBM
(845) 892-5463; FAX: (845) 892-5542
rbause@us.ibm.com

Tiffany Sparks
Chartered Semiconductor Manufacturing (U.S.)
(408) 941-1185; Fax: (408) 941-1285
tiffanys@charteredsemi.com

Maggie Tan
Chartered Semiconductor Manufacturing (Singapore)
(65) 6360-4705; Fax (65) 6369-1954
tanmaggie@charteredsemi.com

Information Number

INFXX200308.110