STATS ChipPAC Expands Manufacturing Presence in Singapore With a New Factory

Groundbreaking for New 197,000 Square Foot Factory to Support Expansion Of Advanced Wafer Level Technologies


SINGAPORE--05/01/2012, UNITED STATES--(Marketwire - Jan 5, 2012) - STATS ChipPAC Ltd. ("STATS ChipPAC" or the "Company") (SGX-ST: STATSChP), a leading semiconductor test and advanced packaging service provider, today held the groundbreaking ceremony for a new factory in Singapore. The new 197,000 square foot building will be located next to the Company's current factory in Yishun, Singapore and will enable STATS ChipPAC to expand its manufacturing capabilities for advanced wafer level technologies including embedded Wafer Level Ball Grid Array (eWLB), Wafer Level Chip Scale Packaging (WLCSP), Integrated Passive Devices (IPD) and Through Silicon Via (TSV).

STATS ChipPAC had invested approximately US$250 million in Singapore over the last three years to expand its technology offering and manufacturing capacity. The new factory will allow the Company to further expand its capacity in advanced wafer level packaging and test solutions to support growing customer demand. The Company expects to invest an additional US$220 million in Singapore over the next several years.

"We believe our technology leadership, manufacturing capabilities and new capacity in Singapore will provide a strong foundation for future expansion in our advanced wafer level package offering in eWLB, WLCSP, IPD and TSV. Advanced wafer level technologies are essential to support our customers' requirements for increased performance and functionality in a smaller footprint for sophisticated mobile devices such as smartphones and tablets," said Tan Lay Koon, President and Chief Executive Officer, STATS ChipPAC. "Expanding our global manufacturing footprint in advanced wafer level packaging will further strengthen our leadership in these technologies and reinforce Singapore's position as a leading location for advanced packaging technology."

Wafer level packaging has been one of the highest growth segments in the semiconductor industry with demand that has outpaced the available market capacity. STATS ChipPAC's significant focus on the development of wafer level technologies has resulted in a broader range of advanced process capabilities and package architectures for high performance mobile and consumer applications.

"The new factory in Singapore will greatly contribute to our Company's overall strategic growth initiatives. Our larger presence in Singapore is an important step in enabling us to further optimize our overall manufacturing activities by concentrating on advanced packaging capacity that will generate more cost, productivity and efficiency advantages. The combination of excellent infrastructure and semiconductor ecosystem in Singapore and our depth of technical knowledge and advanced packaging production volume experience will enable our operation in Singapore to thrive in the globally competitive Outsourced Semiconductor Assembly and Test (OSAT) industry," said Lew Hon Sang, Managing Director, STATS ChipPAC Singapore. "In 2010, we celebrated the grand opening of our new 300mm eWLB manufacturing in Singapore. Today's groundbreaking is another major milestone for STATS ChipPAC Singapore."

Once the new building is completed, STATS ChipPAC's combined manufacturing space in Singapore will increase from 595,000 to 792,000 square feet. The new facility is expected to be operational by the fourth quarter of 2012.

Forward-Looking Statements
Certain statements in this release are forward-looking statements that involve a number of risks and uncertainties that could cause actual events or results to differ materially from those described in this release. Factors that could cause actual results to differ include, but are not limited to, uncertainty surrounding the ongoing impact of the flood in Thailand and its impact to our Thailand facility, shortages in supply of key components and disruption in supply chain; general business and economic conditions and the state of the semiconductor industry; prevailing market conditions; demand for end-use applications products such as communications equipment, consumer and multi-applications and personal computers; decisions by customers to discontinue outsourcing of test and packaging services; level of competition; our reliance on a small group of principal customers; our continued success in technological innovations; pricing pressures, including declines in average selling prices; intellectual property rights disputes and litigation; our ability to control operating expenses; our substantial level of indebtedness and access to credit markets; potential impairment charges; availability of financing; changes in our product mix; our capacity utilisation; delays in acquiring or installing new equipment; limitations imposed by our financing arrangements which may limit our ability to maintain and grow our business; returns from research and development investments; changes in customer order patterns; customer credit risks; disruption of our operations; loss of key management or other personnel; defects or malfunctions in our testing equipment or packages; rescheduling or cancelling of customer orders; adverse tax and other financial consequences if the taxing authorities do not agree with our interpretation of the applicable tax laws; classification of our Company as a passive foreign investment company; our ability to develop and protect our intellectual property; changes in environmental laws and regulations; exchange rate fluctuations; regulatory approvals for further investments in our subsidiaries; majority ownership by Temasek Holdings (Private) Limited ("Temasek") that may result in conflicting interests with Temasek and our affiliates; unsuccessful acquisitions and investments in other companies and businesses; labour union problems in South Korea; uncertainties of conducting business in China and changes in laws, currency policy and political instability in other countries in Asia; natural calamities and disasters, including outbreaks of epidemics and communicable diseases; the continued trading and listing of our ordinary shares on the Singapore Exchange Securities Trading Limited ("SGX-ST"). You should not unduly rely on such statements. We do not intend, and do not assume any obligation, to update any forward-looking statements to reflect subsequent events or circumstances.

About STATS ChipPAC Ltd.
STATS ChipPAC Ltd. is a leading service provider of semiconductor packaging design, assembly, test and distribution solutions in diverse end market applications including communications, digital consumer and computing. With global headquarters in Singapore, STATS ChipPAC has design, research and development, manufacturing or customer support offices in 10 different countries. STATS ChipPAC is listed on the SGX-ST. Further information is available at www.statschippac.com. Information contained in this website does not constitute a part of this release.

Contact Information:

Investor Relations Contact:
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