Chartered's NanoAccess Offers Foundry-Proven 90-Namometer Silicon Technologies for SoC Manufacturing

MILPITAS, Calif. and SINGAPORE - September 18, 2003 - Chartered Semiconductor Manufacturing (Nasdaq: CHRT and SGX-ST: Chartered), one of the world's top three dedicated semiconductor foundries, today detailed the silicon deliverables for its NanoAccessÔ system-on-chip (SoC) manufacturing technologies at the 90-nanometer (nm) node. Chartered's NanoAccess offerings are based on the semiconductor industry's process platform for 90nm being jointly developed by Chartered and IBM, two of the world's four leading foundries, and 65nm being jointly developed by Chartered, IBM and Infineon.

Chartered announced the immediate availability of the joint Chartered and IBM 90nm design manual and SPICE models to early adopters for design prototyping. Initial process qualification for both FTEOS and low-k dielectric options is targeted for completion by the first quarter of 2004. To further facilitate 90nm design validation for leading-edge customers and intellectual property (IP) partners, Chartered is offering multi-project wafer (MPW) runs starting in October 2003. Chartered has qualified Dai Nippon Printing Co., Ltd. (DNP) for 90nm mask production. Toppan Printing Co., Ltd and its subsidiaries are currently under qualification.

Chartered's NanoAccess 90nm manufacturing technologies are supported with a comprehensive 90nm design ecosystem, which includes open access to third-party design libraries and tools, IP components, as well as design and manufacturing-related services. Details regarding Chartered's NanoAccess Alliance and the schedule of joint design deliverables are outlined in a separate announcement also issued today. (See September 18, 2003 press release, "Chartered Launches NanoAccess Alliance to Enable Chip Design on Foundry-Proven 90nm Process Platform")

"IBM is the recognized leader in advanced semiconductor technology given its sustained record of innovation, and our joint development efforts are already producing results for early adopters of 90nm technologies," said Dr. S.C. Sun, senior vice president of technology development at Chartered. "With our NanoAccess 90nm technologies, we're providing access to the industry's most proven process platform through a dedicated foundry services model and economies of scale that will enable more companies and IP providers to accelerate their move to 90nm."

"By working together with Chartered in creating our 90nm solutions, we are significantly expanding the market reach for our technology investments," said Dr. Bernard S. Meyerson, vice president and chief technologist, IBM Technology Group. "Chartered has demonstrated the ability to successfully productize technology for both fabless suppliers and IDMs. As a result of our alliance, we can focus additional IBM resources on delivering more value to our customers through added features at 90nm, as well as devote more resource to new technologies at 65nm and beyond."

Chartered NanoAccess 90nm Technologies

The complex physics and integration benefits of 90nm geometries require a systems approach to silicon development and manufacturing. Chartered's 90nm strategy is to provide a complete design-to-manufacturing platform and dual-sourcing flexibility based on its joint development and reciprocal manufacturing agreement with IBM. Compatibility is built in at the process, design and mask levels, and in Chartered's Fab 7 with a "copy smart" equipment set to further enhance yield optimizations for Chartered's NanoAccess 90nm technologies. In addition, Chartered is taking measures to accommodate small batch processing for companies with lower volume supply needs.

"IBM's unique research capability puts them in a class by themselves in this new Nano Age," said G. Dan Hutcheson, president of VLSI Research. "Chartered's understanding of the foundry service model can proliferate the jointly developed Chartered/IBM nanotechnology platform, and help seed market demand for the higher volume SoC applications such as high-performance set-top boxes, digital televisions, networking devices, and digital cellular phones."

Chartered's NanoAccess 90nm technologies feature up to nine layers of copper metal for signal routing, multiple threshold voltage transistor options, full low-k offering for performance critical applications, and FTEOS for balanced cost and performance implementations. An optional Triple Gate Oxide capability provides additional avenues for further optimizing power and performance.

NanoAccess Deliverables & Availability

Chartered's NanoAccess silicon deliverables include a 90nm design manual with performance and reliability design rules, electrical parameters, and silicon characterization guidelines. It supports Chartered's standard suite of mixed-signal and embedded memory modules, as well as multiple transistor configurations for flexibility in designing SoCs with peak performance, low leakage devices needed for mobile/handheld applications.

Transistor options include Nominal, High Performance (HP) and Low Power (LP) devices with input/output operating voltages of 3.3, 2.5, 1.8, 1.5 or 1.2 volts. Core transistor operating voltages include 1.0 or 1.2 volts. Initial offerings include multiple threshold voltages in the Nominal option. The LP transistor, which has a typical leakage (Ioff) of 0.02 nanoamps per micron, is well suited for power-sensitive circuits in a chip. For speed critical chips, the HP transistor provides a typical ring oscillator (RO) delay of 7.4 picoseconds per stage. The design manual will be updated in fourth quarter of 2003 to include HP devices.

The SPICE simulation models currently available to Chartered 90nm customers and IP partners were developed using a methodology that isolates and partitions numerous process variables. This streamlines both initial development cycles on 200mm wafers and migration to 300mm.

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.

Chartered Safe Harbour Statement under the provisions of the United States Private Securities Litigation Reform Act of 1995

This news release may contain 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 are subject to certain risks and uncertainties, which could cause actual results to differ materially. Among the factors that could cause actual results to differ materially are changes in market outlook and trends; customer demands, the rate of semiconductor market recovery; economic conditions in the United States as well as globally; the performance level of and technology mix in our fabrication facilities; the successful implementation of our partnership, technology and supply alliances 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 and our First Quarter 2003 Quarterly Report on Form 6-K 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.

NanoAccess is a trademark of Chartered Semiconductor Manufacturing. All other trademarks are the property of their respective owners.

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