STATS ChipPAC Expands Capacity for Wafer Level Packaging

SINGAPORE--06/17/2009, UNITED STATES, Jun 16 (MARKET
WIRE) --
STATS ChipPAC Ltd. ("STATS ChipPAC" or the "Company") (SGX-ST: STATSChP),
a leading semiconductor test and advanced packaging service provider,
today announced that it is expanding capacity for full turnkey wafer
level packaging in its Singapore operation.

Wafer level packages remain one of the highest growth semiconductor
packages due to increasing demand in mobile applications requiring the
smallest, lightest devices that are able to deliver high performance and
reliability. As one of the most compact packaging methods available, wafer
level packages differ from laminate and leadframe based packages in that
all of the process steps are performed at the wafer level prior to the
singulation of the die from the wafer. Full turnkey wafer level packaging
includes wafer bump, test and die level services such as tape and reel.

STATS ChipPAC has been on a steady production ramp with wafer level
packaging services and more than doubled its production volume in 2008.
The Company intends to continue to expand its Singapore wafer level
operation and is on track to achieve another 50% increase in wafer level
capacity by the third quarter of 2009. Singapore has proven to be an
excellent logistics choice to support growth in wafer level packaging for
a number of reasons including its strategic location and close proximity
to other countries within Asia, an experienced workforce and an efficient
import and export process.

"Despite the slowdown in the global economy, there continues to be
customer demand for high performance packages with the smallest possible
form factor. For semiconductor companies interested in converting
conventional packages to wafer level packaging solutions to achieve
increased functionality and higher input/output performance at a lower
cost, the available manufacturing capacity in the market has been
limited," said Wan Choong Hoe, Executive Vice President and Chief
Operating Officer, STATS ChipPAC. "We are making a focused investment to
strategically expand our wafer level capacity to service the growing
demand from our customers."

STATS ChipPAC's wafer level packaging solutions include a wide range of
technologies for wafer repassivation, redistribution and IPD layers
combined with electronics industry preferred lead free SAC alloys in both
fine and large pitch applications. Additionally, a complete turnkey
process flow is available with flexible backend assembly capability
supporting high volume wafer sort, automatic optical inspection and
backend processing of bare die into tape and reel or waffle pack.

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, our ability to continue to expand our wafer level operations
in Singapore, extent of deterioration in 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; customer credit risks; possible future application of
push-down accounting; 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; our ability to generate cash;
potential impairment charges; availability of financing; adverse tax and
other financial consequences if the South Korean taxing authorities do
not agree with our interpretation of the applicable tax laws;
classification of the Company as a passive foreign investment company;
our ability to develop and protect our intellectual property;
rescheduling or canceling of customer orders; changes in our product mix;
our capacity utilization; 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; 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; 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);
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 changes in laws,
currency policy and political instability in 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 filings with the U.S. Securities and Exchange Commission,
including its annual report on Form 20-F dated March 9, 2009. 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.

Investor Relations Contact:
Tham Kah Locke
Vice President of Corporate Finance
Tel: (65) 6824 7788, Fax: (65) 6720 7826
email: Email Contact

Media Contact:
Lisa Lavin
Deputy Director of Corporate Communications
Tel: (208) 867 9859
email: Email Contact

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