STATS ChipPAC Announces Expansion Plans in South Korea

SINGAPORE -- 19 NOVEMBER 2012, UNITED STATES--(Marketwire - Nov 19, 2012) -  STATS ChipPAC Ltd. ("STATS ChipPAC" or the "Company") (SGX-ST: STATSChP), a leading semiconductor test and advanced packaging service provider, today announced plans to expand its semiconductor assembly and test operation in South Korea. The Company has signed a non-binding memorandum of understanding to invest in a new integrated facility in the Incheon Free Economic Zone, an international business district located in the Incheon metropolitan area that is adjacent to Seoul, South Korea.

The integrated facility will include approximately 95,000 square meters (1 million square feet) of land with options for future expansion. The integrated facility will be used for manufacturing, research and development, and administration. Construction is scheduled to begin in the third quarter of 2013 and the new facility is expected to be operational in the second half of 2015. STATS ChipPAC intends to integrate its existing facilities in South Korea into the new, larger facility to achieve a more efficient, cost effective manufacturing flow and provide flexibility for future expansion.

"STATS ChipPAC Korea is an important strategic manufacturing operation with an illustrious history of delivering the most advanced packaging and test technologies with proven manufacturing capabilities that extend back over 27 years to when the factory was first established. We are very confident that our expansion in South Korea will increase our overall competitiveness in advanced flip chip, advanced wirebonding and three dimensional (3D) packaging technologies where we have established a strong leadership position in the industry," said Tan Lay Koon, President and Chief Executive Officer, STATS ChipPAC. "The expansion and integration of our operations in South Korea align with our ongoing growth over the last several years in advanced technologies for the electronics mobility and convergence markets."

STATS ChipPAC Korea's sizeable flip chip technology portfolio ranges from large single die fcBGA packages with passive components used for graphics, CPU and ASIC devices to smaller fcFBGA packages including single die, multi-die and stacked configurations that combine wire bond and flip chip technology within a single package. In terms of 3D technology, STATS ChipPAC Korea provides advanced Package-on-Package (PoP), Package-in-Package (PiP) and System-in-Package (SiP) technologies that integrate one or more integrated circuits or passives into a single solution for mobile, digital consumer and data storage applications.

"We are proud of the leadership position we have in advanced packaging technologies and the extensive manufacturing experience we have demonstrated over the years. We are excited to begin a new phase of expansion in South Korea with the opportunity to increase the level of manufacturing efficiency, capabilities and overall capacity for our customers," said Sang-Jin Maeng, Managing Director, STATS ChipPAC Korea. "We believe our strategic partnership with Incheon International Airport Corporation (IIAC) will facilitate our future growth in South Korea due to the exceptional business infrastructure in Yeongjongdo and close proximity to Incheon International Airport for accessibility and efficient supply chain logistics."

Forward-Looking Statements
Certain statements in this 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 release. Factors that could cause actual results to differ include, but are not limited to, the timing and impact of the expected closure of the Thailand Plant as well as the estimated associated cost for the closure; the amount of the business interruption insurance claim due to flooding of the Thailand Plant; the ability to shift production to other manufacturing locations, shortages in supply of key components and disruption in supply chain; general business and economic conditions and the state of the semiconductor industry; prevailing market conditions; demand for end-use applications products such as communications equipment, consumer and multi-applications and personal computers; decisions by customers to discontinue outsourcing of test and packaging services; level of competition; our reliance on a small group of principal customers; our continued success in technological innovations; pricing pressures, including declines in average selling prices; intellectual property rights disputes and litigation; our ability to control operating expenses; our substantial level of indebtedness and access to credit markets; potential impairment charges; availability of financing; changes in our product mix; our capacity utilisation; delays in acquiring or installing new equipment; limitations imposed by our financing arrangements which may limit our ability to maintain and grow our business; returns from research and development investments; changes in customer order patterns; customer credit risks; disruption of our operations; loss of key management or other personnel; defects or malfunctions in our testing equipment or packages; rescheduling or cancelling of customer orders; adverse tax and other financial consequences if the taxing authorities do not agree with our interpretation of the applicable tax laws; classification of our Company as a passive foreign investment company; our ability to develop and protect our intellectual property; changes in environmental laws and regulations; exchange rate fluctuations; regulatory approvals for further investments in our subsidiaries; majority ownership by Temasek Holdings (Private) Limited ("Temasek") that may result in conflicting interests with Temasek and our affiliates; unsuccessful acquisitions and investments in other companies and businesses; labour union problems in South Korea; uncertainties of conducting business in China and changes in laws, currency policy and political instability in other countries in Asia; natural calamities and disasters, including outbreaks of epidemics and communicable diseases; the continued trading and listing of our ordinary shares on the Singapore Exchange Securities Trading Limited ("SGX-ST"). You should not unduly rely on such statements. We do not intend, and do not assume any obligation, to update any forward-looking statements to reflect subsequent events or circumstances.

About STATS ChipPAC Ltd.
STATS ChipPAC Ltd. is a leading service provider of semiconductor packaging design, assembly, test and distribution solutions in diverse end market applications including communications, digital consumer and computing. With global headquarters in Singapore, STATS ChipPAC has design, research and development, manufacturing or customer support offices in 10 different countries. STATS ChipPAC is listed on the SGX-ST. Further information is available at www.statschippac.com. Information contained in this website does not constitute a part of this release.