Chartered and China's IC Design Incubation and Services Centers Collaborate to Nurture Startups' Growth

SINGAPORE and SHANGHAI - July 15, 2004 - Chartered Semiconductor Manufacturing (Nasdaq: CHRT and SGX-ST: Chartered), one of the world's top three dedicated semiconductor foundries, has formed a collaborative network with four incubation and services centers in China to nurture the growth of local integrated circuit (IC) design startup companies. The collaboration is intended to help the startups transition successfully along their product value chain for system-on-chip product development and integration, as well as manage the supply chain to enable design-through-manufacturing success. The incubation and services network includes Shanghai Research Centre for IC Design, Shenzhen IC Design Incubation Co. Ltd, EDA Centre of Chinese Academy of Sciences and Xi'an IC Design Industrialization Base of China.

<> The centers serve as an extension of Chartered's engineering support and customer service model. Through the centers, startup companies gain access to Chartered's process and design-enablement solutions - such as design rules, electrical test specifications, spice models, technology files, libraries, silicon-validated IP and process design kits - for their product definition and design. In addition, startups can access Chartered's multiple-project wafer (MPW) program for product prototyping. Several startups in China have already successfully migrated from chip design to production utilizing Chartered's proven manufacturing processes down to 0.18-micron, paving the way for product commercialization. There are also a growing number of customer product tape-outs running on Chartered's MPW prototyping program as a result of this collaborative network.

"For China's design houses and system companies at the startup phase, Chartered wants to nurture their growth by providing proven business and technical solutions, enabling the startups to transition successfully from design concept to production," said Bo Cheng, vice president and general manager of Asia Pacific at Chartered. "We are pleased to collaborate with China's leading IC design incubation and services centers: Shanghai Research Centre for IC Design, Shenzhen IC Design Incubation Co. Ltd, EDA Centre of Chinese Academy of Sciences based in Beijing and Xi'an IC Design Industrialization Base of China. These centers serve as convenient focal points for the startups from various parts of China to access Chartered's solutions, and help Chartered expand our reach to the rapidly growing community of startup IC design companies located throughout China."

Partner Statements

<>"Shanghai Research Centre for IC Design is positioning itself as the largest technical support platform in China for incubating IC design startups," said Mr. Wang Ye, Vice President at Shanghai Research Centre for IC Design. "We are pleased to collaborate with a top-tier foundry like Chartered, who has demonstrated success in supporting Chinese startups with their commercialization efforts. Our collaboration, which began in October 2002, delivers an integrated total-solutions model from design-through-manufacturing, making it possible for Chinese startups to realize sophisticated SoC products and compete with large enterprises in China and abroad."

"Shenzhen IC Design Incubation Company and Chartered have been working very closely to support IC design companies in Shenzhen and its surrounding areas," said Mr. Zhou Bin, General Manager at Shenzhen IC Design Incubation Company. "Particularly for startups and medium-sized companies, access to design tools, libraries and intellectual properties is critical. Chartered's strengths include its expertise in mixed-signal and radio frequency CMOS capabilities as well as having a comprehensive portfolio of proven design solutions. These capabilities are necessary for helping customers overcome the complexities of designing leading-edge consumer and communications applications and achieve faster time to market. Through our collaboration, we are pleased to see several Shenzhen IC design companies reach the final stages of prototyping and are preparing to start production." <> "To support the long-term growth of the semiconductor industry in China, the EDA Centre of Chinese Academy of Sciences embarks on next-generation nanotechnologies research and development and strengthens the technical knowledge base of the industry through education," Professor Ye Qing, Deputy Director at EDA Centre of Chinese Academy of Sciences. "We are pleased to collaborate with Chartered, who is among the early providers of 90-nanometer capabilities, to offer a scalable design services and prototyping support infrastructure for meeting the requirements of semiconductor companies today while extending roadmap solutions in anticipation of future needs."

"Xi'An IC Design Industrialization Base of China is committed to creating an environment that would incubate the growth of startups located around the Xi'an region," Mr. Lin Jianwen, Director at Xi'An IC Design Industrialization Base of China. "We are pleased to collaborate with Chartered, who is recognized for its world-class design services and prototyping support platform and advanced manufacturing capabilities."

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 four fabrication facilities and has a fifth fab, the company's first 300mm facility, which is expected to begin pilot production by the end of 2004.

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). Information about Chartered can be found at http://www.charteredsemi.com.