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Stats ChipPAC Introduces Extremely Thin Packaging Solutions With Sub 0.50mm Profiles

Molded Packages With Higher I/O Available in Both Ball Grid Array and Land Grid Array Form Factors

SINGAPORE -- 10/18/2005 -- STATS ChipPAC Ltd. ("STATS ChipPAC" or the "Company") (NASDAQ: STTS) (SGX-ST: STATSChP), a leading independent semiconductor test and advanced packaging service provider, today announced it has added a new family of extremely thin packaging solutions with profile heights of less than 0.50mm to its packaging portfolio.

Space constrained portable electronics such as cell phones, mini disk drives, and miniaturized consumer electronics are driving the need for smaller and thinner packaging solutions to support low vertical profiles. While bare die solutions have typically been utilized for extremely thin profile requirements, STATS ChipPAC now provides semiconductor companies the option of using a substrate based molded package for the same applications. Unlike other extra thin package offerings, terminals can be arrayed across the bottom surface of the package, delivering higher input/output (I/O) in smaller form factors. These extra thin packages are able to accommodate die shrinks without changing the package footprint as well as integrate more than one device within the package, allowing for a very flexible packaging solution.

In order to achieve a maximum profile height of less than 0.50mm, STATS ChipPAC utilizes a 0.13mm two metal layer laminate substrate, wafer thinning down to 75 microns, advanced molding technology, and an optimized bill of materials to minimize warpage of the assembled package. STATS ChipPAC's extra thin design allows a full array of solder balls or lands on the substrate to deliver greater flexibility in (I/O), layout and density in a given package size. STATS ChipPAC's Extremely Thin Fine Ball Grid Array (XFBGA) package features a maximum height of 0.50mm while the Extremely Fine Land Grid Array (XFLGA) package achieves a maximum height of 0.45mm. The technology to support larger ball sizes for XFBGA and two die stack for XFLGA is also available.

"We have taken our deep knowledge base in die stacking and applied key enabling technologies to develop an extra thin package offering for customers," said Scott Jewler, Chief Strategy Officer, STATS ChipPAC. "By combining conventional wire bond equipment and processes with advanced wafer thinning technologies, we are able to offer customers a leading-edge solution that still satisfies the cost sensitive demands of consumer applications."

XFBGA and XFLGA packages are available in single or multiple die solutions utilizing lead free material sets (including low alpha materials), with or without eutectic or lead free solder balls. STATS ChipPAC has currently qualified up to two die in a side-by-side configuration. Additional die configurations are possible based on the application requirements.

About STATS ChipPAC Ltd.

STATS ChipPAC Ltd. ("STATS ChipPAC" or the "Company") (NASDAQ: STTS) (SGX-ST: STATSChP) is a leading service provider of semiconductor packaging design, assembly, test and distribution solutions. A trusted partner and supplier to leading semiconductor companies worldwide, STATS ChipPAC provides fully integrated, multi-site, end-to-end packaging and testing solutions that bring products to market faster. Our customers are some of the largest wafer foundries, integrated device manufacturers (IDMs) and fabless companies in the United States, Europe and Asia. STATS ChipPAC is a leader in mixed signal testing and advanced packaging technology for semiconductors used in diverse end market applications including communications, power, digital consumer and computing. With advanced process technology capabilities and a global manufacturing presence spanning Singapore, South Korea, China, Malaysia and Taiwan, STATS ChipPAC has a reputation for providing dependable, high quality test and packaging solutions. The Company's customer support offices are centered in the United States (California's Silicon Valley, Arizona, Texas, Massachusetts, Florida, Colorado and North Carolina). Our offices outside the United States are located in the Netherlands, United Kingdom, China, Singapore, Japan, Taiwan, South Korea and Malaysia. STATS ChipPAC's facilities include those of its subsidiary, Winstek Semiconductor Corporation, in Hsinchu Valley, Taiwan. These facilities offer new product introduction support, pre-production wafer sort, final test, packaging and other high volume preparatory services. Together with our research and development centers in Singapore and South Korea as well as test facilities in the United States, this forms a global network providing dedicated test engineering development and product engineering support for customers from design to volume production. STATS ChipPAC is listed on both the Nasdaq National Market and the Singapore Exchange Securities Trading Limited. In addition, STATS ChipPAC is also listed on the Morgan Stanley Capital International (MSCI) Index and the Straits Times Industrial Index. Further information is available at www.statschippac.com. Information contained in this website does not constitute a part of this release.

Certain statements in this press 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 press release. Factors that could cause actual results to differ include our ability to successfully integrate the operations of former STATS and ChipPAC and their employees; general business and economic conditions and the state of the semiconductor industry; demand for end-use applications products such as communications equipment and personal computers; reliance on a small group of principal customers; decisions by customers to discontinue outsourcing of test and packaging services; changes in customer order patterns; rescheduling or canceling of customer orders; changes in product mix; capacity utilization; level of competition; pricing pressures including declines in average selling prices; continued success in technological innovations; delays in acquiring or installing new equipment; shortages in supply of key components; availability of financing; exchange rate fluctuations; litigation and other risks described from time to time in the Company's SEC filings, including its annual report on Form 20-F dated March 18, 2005 and the Registration Statement on Form F-3/S-3 (File Nos. 333-119705 and 333-119705-1) of STATS ChipPAC and STATS ChipPAC, Inc. respectively. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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