ARM and SMIC Collaborate To Develop ARM Core-based Test Chip For China

SMIC to join ARM Foundry Program and offer world-class fabrication facilities for ARM core-based IC designs

CAMBRIDGE, UK and SHANGHAI, CHINA --Sept. 25, 2002 – ARM [(LSE: ARM); (Nasdaq: ARMHY)], the industry's leading provider of 16/32-bit embedded RISC microprocessor solutions, and the leading foundry in China, Semiconductor Manufacturing International Corporation (SMIC), today announced that the two companies have signed an agreement to develop an ARM7TDMI® microprocessor core-based test chip. The test chip, targeted at SMIC's 0.18micron CMOS process, is the first step in enabling fabless design companies to access ARM® microprocessor core technology with a view towards future fabrication.

SMIC was established in Shanghai in August 2000 with the objective of creating world- class wafer fabrication facilities. The ARM7TDMI test chip will enable local semiconductor houses to develop and validate products around ARM's most widely licensed and popular microprocessor cores.

With a customer base already established in China for both companies, this agreement marks the foundation of a complete package of services, from delivery of semiconductor intellectual property through design and validation to manufacturing.

"China is rapidly establishing itself as a leader in semiconductor development and SMIC aims to be the leading provider of fabrication facilities for the country by offering local expertise and local support," said Richard Chang, president and CEO of SMIC. "In order for us to do this, it is important that our potential customers have access to world-leading technology. With ARM's growing presence in China and its global network of Partners, it makes sense for our two companies to collaborate closely."

"SMIC has great vision and the backing it needs to achieve its goals. The current growth of China's electronics industry represents a large market potential, particularly in the consumer segment where the ARM7TDMI core is already deployed extensively," said Jun Tan, president of ARM China operations. "ARM wants to be part of this exciting growth and our agreement underlines our commitment to the country and its technology.

"ARM has already licensed microprocessor technology to a number of organizations in China and this collaboration now completes the package for delivering both semiconductor Intellectual Property (IP) and manufacturing capability to our existing Partners both within and outside of China," added Tan.

The test chip will complete validation by the end of the year, and ARM7TDMI core-based ICs are expected soon thereafter.

About ARM
ARM is the industry's leading provider of 16/32-bit embedded RISC microprocessor solutions. The company licenses its high-performance, low-cost, power-efficient RISC processors, peripherals, and system-chip designs to leading international electronics companies. ARM also provides comprehensive support required in developing a complete system. ARM's microprocessor cores are rapidly becoming a volume RISC standard in such markets as portable communications, hand-held computing, multimedia digital consumer and embedded solutions. More information on ARM is available at www.arm.com

About SMIC
Established in April 2000, SMIC is a Cayman Islands company with its headquarters in Shanghai, China. SMIC offers leading technology, fast turnaround production and customizable outsourced semiconductor manufacturing services for major integrated device manufacturers, fabless design houses and system OEMs. SMIC's key services include IC design, mask shop services, manufacturing, packaging, testing, and providing customers with a one-stop full service solution. For more information, please visit SMIC's website at www.smics.com.

ENDS

ARM and ARM7TDMI are registered trademarks of ARM Limited. All other brands or product names are the property of their respective holders. "ARM" is used to represent ARM Holdings plc (LSE: ARM and Nasdaq: ARMHY); its operating company ARM Limited; and the regional subsidiaries ARM INC.; ARM KK; ARM Korea Ltd.; ARM China, ARM Taiwan; ARM France SAS; and ARM China.