Chartered Extends Technology Development Agreement with IBM to 32nm

Leading Foundry Continues Proven Joint-Development Model to Provide Customers with Access to Innovation

SINGAPORE -- February 26, 2007 -- Chartered Semiconductor Manufacturing, one of the world’s top dedicated foundries, today announced the extension of its joint development efforts with IBM to include 32-nanometer (nm) bulk complementary metal oxide semiconductor (CMOS) technology. Financial terms were not disclosed.

The extension to 32nm builds on the multi-year agreement that the two companies first signed in November 2002. The joint collaboration has enabled Chartered to accelerate its technology roadmap for leading-edge manufacturing solutions, spanning four major generations of advanced process technology, including 90nm, 65nm, 45nm and 32nm logic processes.

“Today’s announcement demonstrates IBM and Chartered’s commitment to next-generation technology, and promises to extend our track record of success in developing solutions for our customers,” said Lisa Su, vice president, Semiconductor Research and Development Center, IBM. “The combination of Chartered’s manufacturing horsepower and IBM’s innovation roadmap positions us well for continued leadership in the future.”

“We are pleased to be jointly collaborating on our fourth process generation with IBM to develop customer-centric solutions,” said Liang-Choo “LC” Hsia, senior vice president, technology development at Chartered. “Since we first entered into our joint development effort, the industry has recognized the value and importance of the collaborative model as a cost-effective approach to accelerating technology development, and the results of our collaboration have served as a platform for providing customers with world-class, flexible sourcing solutions.”

As with previous nodes, 32nm development activities will be conducted at IBM's state-of-the-art 300 millimeter (mm) semiconductor fabrication facility in East Fishkill, N.Y. Each company will have the ability to implement the jointly developed processes in its own manufacturing facilities.

About Chartered

Chartered Semiconductor Manufacturing, one of the world’s top dedicated semiconductor foundries, offers leading-edge technologies down to 65 nanometer (nm), enabling today’s system-on-chip designs. The company further serves its customers’ needs through a collaborative, joint development approach on a technology roadmap that extends to 32nm. Chartered’s strategy is based on open and comprehensive design enablement solutions, manufacturing enhancement strategies, and a commitment to flexible sourcing. In Singapore, the company operates a 300mm fabrication facility and four 200mm facilities. Information about Chartered can be found at www.charteredsemi.com.