STMicroelectronics, STATS ChipPAC and Infineon to Set New Milestone in Establishing Wafer-Level-Packaging Industry Standard

SOURCE:

STATS ChipPAC

2008-08-07 04:30:00

STMicroelectronics, STATS ChipPAC and Infineon to Set New Milestone in Establishing Wafer-Level-Packaging Industry Standard

STMicroelectronics, STATS ChipPAC and Infineon to Set New Milestone in Establishing Wafer-Level-Packaging Industry Standard

Leading Semiconductor Makers Team Up With Advanced Packaging Provider to Jointly Develop Next-Generation of eWLB Wafer-Level Packaging Technology

GENEVA and SINGAPORE and NEUBIBERG, GERMANY–(EMWNews – August 7, 2008) –

STMicroelectronics (NYSE: STM), STATS ChipPAC (SGX-ST: STATSChP) (SES: S24), and Infineon Technologies AG (FSE/NYSE: IFX) today announced that

they have signed an agreement to jointly develop the next-generation of

embedded Wafer-Level Ball Grid Array (eWLB) technology, based on Infineon’s

first-generation technology, for use in manufacturing future-generation

semiconductor packages.

ST and Infineon, two of the world’s leading semiconductor makers, have

joined forces with STATS ChipPAC, a leader in advanced three dimensional

(3D) packaging solutions, to fully exploit the potential of Infineon’s

existing eWLB packaging technology, which has been licensed by Infineon to

ST and STATS ChipPAC. The new R&D effort, for which the resulting IP will

be owned by the three companies, will focus on using both sides of a

reconstituted wafer to provide solutions for semiconductor devices with a

higher integration level and a greater number of contact elements.

The eWLB technology uses a combination of traditional ‘front-end’ and

‘back-end’ semiconductor manufacturing techniques with parallel processing

of all the chips on the wafer, leading to reduced manufacturing costs. This

together with the increased level of integration of the silicon’s overall

protective package, in addition to a dramatically higher number of external

contacts, means the technology can provide significant cost and size

benefits for makers of cutting-edge wireless and consumer products.

ST’s decision to work with Infineon to jointly develop and use this

innovative technology, with its greater integration level of package size,

marks an important milestone for eWLB on its way to becoming an industry

standard for cost-efficient and highly integrated wafer-level packages. ST

plans to use the technology in several products of its ST-NXP Wireless

joint venture and in other application markets, with first samples expected

by the end of 2008 and production by early 2010.

“The eWLB technology is an excellent complement for our next-generation

leading-edge products, especially in wireless applications,” stated Carlo

Cognetti, Director, Advanced Packaging Technology, STMicroelectronics. “The

eWLB technology sets new milestones in innovation, cost competitiveness and

dimensions and we believe that, together with Infineon, we will pave the

way to a new powerful package technology platform.”

“We are pleased that ST has selected our trend-setting eWLB technology for

its IC packaging and see this partnership as a great recognition for the

excellence of our technology,” stated Wah Teng Gan, Vice President of

Assembly & Test at Infineon Asia Pacific. “With ST as a new partner, and

furthermore STATS ChipPAC as a well-known leader in 3D packaging solutions

acknowledging our technology, we see a shift in the packaging industry

towards the energy efficient and high-performance eWLB technology.”

“We are very pleased that Infineon and ST have selected STATS ChipPAC as a

joint development partner to develop the next generation of eWLB technology

and to manufacture products on both generations of eWLB technology,” said

Dr. Han Byung Joon, Executive Vice President and Chief Technology Officer,

STATS ChipPAC. “The depth of technical expertise at Infineon and ST,

combined with the knowledge we have on driving integration technology and

flexibility at the silicon level, are essential to delivering this

breakthrough technology.”

About eWLB

eWLB is a revolutionary packaging technology, introduced by Infineon in

fall 2007. It sets the benchmark in integration level and efficiency and

paves the way to providing the industry and end consumers with a new

generation of energy-efficient, high-performing mobile devices. With these

new packaging processes the benefits of Wafer-Level Ball Grid Array (WLB)

technology — namely, cost-optimized production and enhanced performance

features — can be extended: All operations are performed at wafer level,

as with WLBs, signifying concurrent processing of all the chips on the

wafer in one step. The trend-setting package technology sets the benchmark

in integration level and efficiency, namely a 30-percent reduction of

dimension compared to conventional lead-frame laminate packages and an

almost infinite number of contact elements.

About Infineon

Infineon Technologies AG, Neubiberg, Germany, offers semiconductor and

system solutions addressing three central challenges to modern society:

energy efficiency, communications, and security. In the 2007 fiscal year

(ending September), the company reported sales of Euro 7.7 billion

(including Qimonda sales of Euro 3.6 billion) with approximately 43,000

employees worldwide (including approximately 13,500 Qimonda employees).

With a global presence, Infineon operates through its subsidiaries in the

U.S. from Milpitas, CA, in the Asia-Pacific region from Singapore, and in

Japan from Tokyo. Infineon is listed on the Frankfurt Stock Exchange and on

the New York Stock Exchange (ticker symbol: IFX).

Further information is available at www.infineon.com.

This news release is available online at www.infineon.com/press/

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 Singapore Exchange Securities

Trading Limited (SGX-ST). Further information is available at

www.statschippac.com. Information contained in this website does not

constitute a part of this release.

STATS ChipPAC Ltd- 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, general business and economic conditions and the state of the

semiconductor industry; level of competition; demand for end-use

applications products such as communications equipment and personal

computers; decisions by customers to discontinue outsourcing of test and

packaging services; our reliance on a small group of principal customers;

our continued success in technological innovations; pricing pressures,

including declines in average selling prices; availability of financing;

prevailing market conditions; our ability to meet the applicable

requirements for the termination of registration under the Exchange Act;

our ability to meet specific conditions imposed for the continued listing

or delisting of our ordinary shares on the Singapore Exchange Securities

Trading Limited (SGX-ST); our substantial level of indebtedness; potential

impairment charges; delays in acquiring or installing new equipment;

adverse tax and other financial consequences if the South Korean taxing

authorities do not agree with our interpretation of the applicable tax

laws; our ability to develop and protect our intellectual property;

rescheduling or canceling of customer orders; changes in our product mix;

intellectual property rights disputes and litigation; our capacity

utilization; limitations imposed by our financing arrangements which may

limit our ability to maintain and grow our business; changes in customer

order patterns; shortages in supply of key components; disruption of our

operations; loss of key management or other personnel; defects or

malfunctions in our testing equipment or packages; 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; labor union problems in

South Korea; uncertainties of conducting business in China and other

countries in Asia; natural calamities and disasters, including outbreaks of

epidemics and communicable diseases; and other risks described from time to

time in the Company’s SEC filings, including its annual report on Form 20-F

dated March 7, 2008. 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 STMicroelectronics

STMicroelectronics is a global leader in developing and delivering

semiconductor solutions across the spectrum of microelectronics

applications. An unrivalled combination of silicon and system expertise,

manufacturing strength, Intellectual Property (IP) portfolio and strategic

partners positions the Company at the forefront of System-on-Chip (SoC)

technology and its products play a key role in enabling today’s convergence

markets. The Company’s shares are traded on the New York Stock Exchange, on

Euronext Paris and on the Milan Stock Exchange. In 2007, the Company’s net

revenues were $10 billion. Further information on ST can be found at

www.st.com.

Contact information:

Tham Kah Locke
STATS ChipPAC Investor Relations
Tel: (65) 6824 7788
email:
Lisa Lavin
STATS ChipPAC Media Relations
Tel: (208) 939 3104
email:

Christoph von Schierstädt
Infineon Technologies AG
Media Relations, C MR
phone: +49 (089) 234-22984
Fax: +49 (089) 234-9551420
mobile: +49 160 96901486

Michael Markowitz
STMicroelectronics
Director of Technical Media Relations
Tel: +1 212 8218959
Email:

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