Chartered Extends Technology Development Agreement with IBM to 32nm

SINGAPORE—(BUSINESS WIRE)—February 26, 2007— Chartered Semiconductor Manufacturing (Nasdaq: CHRT)(SGX-ST:Chartered), 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 (Nasdaq: CHRT)(SGX-ST:CHARTERED), 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.

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 our joint collaboration activities with IBM and our ability to deliver leading-edge manufacturing capacity spanning four major generations of advanced process technology, the extension of our joint collaboration with IBM, the recognition by the industry of our joint collaboration with IBM and our success in developing solutions for our customers, reflect our 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: the success of our joint development efforts with IBM and the extension to 32nm; the transfer of the technology from IBM's facility to our facility; changes in the demands from our major customers, excess inventory, life cycle, market outlook and trends or specific products; competition from other foundries; unforeseen delays, interruptions, performance level and technology mix in our fabrication facilities; our progress on leading-edge products; changes in capacity plans, allocation and process technology mix, unavailability of materials, equipment, manpower and expertise; the successful implementation of our partnership, technology and supply alliances; the growth rate of fables companies, the outsourcing strategy of integrated device manufacturers ("IDM") and our expectation that IDMs will utilize foundry capacity more extensively; demand and supply outlook in the semiconductor market and the economic conditions in the United States as well as globally. 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 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.

Contact:

Chartered Semiconductor Manufacturing
Tiffany Sparks, (1) 408-941-1185 (U.S.)
Email Contact
Khor Hwee Eng, (65) 6360-1748 (Singapore)
Email Contact




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