ChipPAC Qualifies LFCSP™ – Highest Volume Package Technology Since BGA Expanded Chip Scale Capability Offers Better Performance and Lower Cost for IC Packages Under 100 Pins SANTA CLARA, California, May 24, 2001 - ChipPAC, Inc. (Nasdaq: CHPC), one of the largest service providers in semiconductor packaging, test and distribution, today announced expansion of its product line with the successful qualification of LFCSP™ Packaging, the company's new, lead -frame Chip Scale Package. LFCSP is a more flexible, lower cost CSP solution offering higher performance for devices under 100 pins. It is ideally suited for RF wireless, memory, micro-controller, power management, analog and discrete applications for such products as high-end laptop computers, cellular phones and PDAs. With capacity for 2 million units/month in Korea and 10 million/month in Malaysia, ChipPAC is the industry's only dual-source supplier of chip packages in this class. "Our LFCSP package gives customers the electrical and thermal performance needed for space-critical applications," said Marcos Karnezos, Chief Technology Officer for ChipPAC. The 7x7mm LFCSP-48 represents a 50% improvement over its closest equivalent leaded package in electrical, thermal and space considerations. It achieves 1.03 nH self-inductance; a selfcapacitance value of only 0.15 pF; Theta JA of 30 degrees C/Watt; and a power dissipation rating greater than 1.8 Watts (still air). "Indeed, with this caliber of electrical performance, our LFCSP technology may well prove to be the most flexible and cost effective for nearly all applications under 100 pins," continued Dr. Karnezos, "as we fully expect volume-manufacturing costs to dip below those of traditional SOIC." Only 0.9mm thick, ChipPAC's LFCSP is a leadframe-based, molded, "land grid array" style package with a number of patentpending features. These structural features provide enhanced reliability, specifically for the critical, internal down-bonds to the die attach pad, the backside of which is exposed on the package bottom for direct solder-attachment to the PC board. Packaging is available in both JEDEC MO-220-compliant and custom versions, with body sizes from 2x2 to 12x12mm, and pin counts from 3 to 100. High throughput and maximum material utilization is achieved because of the matrix, leadframe-strip design for molded arrays and high-speed, saw singulation processing. Rather than using the typical pre-taped products from leadframe suppliers, ChipPAC maximizes quality and further reduces costs by using a superior, in-house coverlay tape lamination process to eliminate mold flash. Combined with extensive in-house design, characterization, and test capabilities, this manufacturing approach allows new pin counts and body sizes to be created within a few weeks. And high volume test services are in place for products ranging from discrete FET's to RF devices with applications over 2GHz. Already the broadest portfolio supplier within the SAT industry, the qualification of LFCSP Packaging is part of ChipPAC's ongoing business strategy of developing advanced packaging and test technologies to extend current relationships and attract new customers to the company. About ChipPAC, Inc. ChipPAC is a full-portfolio provider of semiconductor packaging, test and distribution services that combines a history of innovation and reliability with more than a decade of experience satisfying some of the largest - and most demanding customers in the industry. With advanced process technology capabilities and a global manufacturing presence spanning Korea, China, Malaysia and the United States, ChipPAC has established a reputation for providing dependable, high quality packaging solutions. For more information, visit the company's web site at www.chippac.com. Forward-Looking Statements: This press release includes forward-looking statements, as that term is defined in the Private Securities Reform Act of 1995, which are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These forward looking statements include statements regarding the trends in our financial performance, expected continued demand for our services and products, growth in our end markets, access to new customers, ability to fulfill customer demand, and our position to capitalize on growth in the semiconductor industry. Some of these risks and uncertainties are detailed in documents filed with the Securities and Exchange Commission, and include, but may not necessarily be limited to, fluctuations in customer demand, raw material costs, exchange rates, timing and success of new product and service introductions, competitive conditions in the semiconductor foundry industry, the ongoing quality of and capacity to provide the Company's services, and the ability of the Company's principal suppliers to provide materials and equipment on a timely and cost competitive basis. The Company undertakes no obligation to update the information in this press release.