Chartered Launches 0.13-Micron, 0.11-Micron and 90-Nanometer Processes at 300-mm Fab

Yielding 0.13-micron 300-mm wafers exceeding expectations in initial runs; Customer engagements, operational excellence reinforce Chartered's position among technology leaders

SINGAPORE and MILPITAS, Calif. - September 7, 2004 - Chartered Semiconductor Manufacturing (Nasdaq: CHRT and SGX-ST: Chartered), one of the world's top three dedicated semiconductor foundries, has achieved functional 0.13-micron 300-millimeter (mm) wafers from its Fab 7, demonstrating silicon results which exceeded internal targets within five months of the first equipment installation. Additionally, Chartered has launched engineering 300-mm wafers at Fab 7 for its 0.11-micron process, as well for the 90-nanometer (nm) platform it is jointly developing with IBM.

For 200-mm and 300-mm manufacturing, Chartered is already engaging with customers on its 0.13-micron and 0.11-micron solutions, as well as on the landmark 90-nm cross-foundry platform that will be available at both Chartered's Singapore-based Fab 7 and IBM's East Fishkill, New York fab.

"Chartered continues to make progress in readying production and lining up customers for Fab 7, our first 300-mm facility," said Kay Chai "KC" Ang, senior vice president of fab operations at Chartered. "Our design-ready 0.13-micron solutions and the growing industry participation on the Chartered and IBM platform increase customers' confidence that our approach will enable a shorter learning curve to adopt new technologies, greater efficiencies through 300-mm manufacturing, and a cost-effective, flexible model for all their manufacturing needs."

Customers are utilizing Chartered's 0.13-micron solutions from Fab 6, a 200-mm facility, to deliver a broad variety of leading-edge and next-generation system-on-chip (SoC) products, such as high-performance graphics chips, storage and networking products, wireless local area network (WLAN) products, PC peripherals and optical drives.

Additionally, Chartered is offering its 0.11-micron process as an intermediary node to 0.13 micron from its Fab 6 and Fab 7. Chartered's 0.11-micron process offerings are achieved with a 10 percent shrink of Chartered's 0.13-micron design rule, and therefore, reduce implementation risks while lowering the cost per die. Chartered's 0.11-micron solutions support faster speed and enhanced performance, and are targeted for today's fast-moving products such as graphic chips, optical drives and high-speed SRAMs.

Simultaneously, as part of the joint development and reciprocal manufacturing agreement between Chartered and IBM, a team of IBM technical experts are in Singapore to transfer the jointly developed 90-nm technology from IBM's 300-mm facility in East Fishkill, New York. The teams from Chartered and IBM are also working together to qualify the equipment set at Fab 7, and align Fab 7's equipment configuration and process flow with those at IBM's facility to enable the industry's first dual-source 90-nm platform. Following the launch of 90-nm engineering wafers, Fab 7 remains on schedule to manufacture 90-nm silicon-on-insulator (SOI) products for IBM in mid-2005, with Chartered becoming the only dedicated foundry to have advanced SOI capabilities.

Dr. Didier Lamouche, vice president of worldwide semiconductor manufacturing at IBM, will address the technology transfer methods between IBM's facility and Chartered's Fab 7 at Chartered's upcoming Technology Forum in San Jose, Calif. on Thursday, September 16, 2004. For registration and more details, visit http://www.charteredsemi.com/forum.

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.

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 the progress of our 300-mm and 200-mm wafer production for our 0.13-micron, 0.11-micron and 90-nm processes; the impact on our manufacturing capabilities and product offerings; our 90-nm platform joint development activities with IBM and the progress of the industry's first dual-sourcing 90-nm platform; and the expected production dates for 90-nm engineering wafer production and 90-nm SOI products for IBM in Fab 7; reflect Chartered's current views with respect to future events and financial performance, 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: 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 fabrication facilities (including Fab 7); the performance level of and technology mix in our fabrication facilities; changes in capacity allocation in process technology mix, changes in our capacity plans, our progress on leading edge products; the successful implementation of our joint development activities and supply alliance with IBM 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 cautio ned 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.