SAN DIEGO -- January 16, 2001 -- Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced a US$25 million investment in ChipPAC, Inc. (Nasdaq: CHPC), one of the world's largest and most diversified providers of semiconductor test and packaging services, and an agreement for supply of assembly and test services for Qualcomm CDMA Technologies' (QCT) Mobile Station Modem (MSM™) integrated circuits. This investment, which was finalized in August 2000, combined with ChipPAC's recent announcement of direct sales in China, allows QCT to assemble and test QCT chips in China for future Chinese customers, and guarantees capacity availability for semiconductor production in China.
"China represents one of the fastest growing and most lucrative semiconductor markets in the world," said Dennis McKenna, chief executive officer and president of ChipPAC. "Our relationship with Qualcomm will enhance our growth and expansion into this strategic market and lay the groundwork for offering Chinese consumers advanced CDMA wireless products."
"ChipPAC demonstrates the leadership and consistent record of performance that QCT looks for in developing working partnerships in the semiconductor industry," said Don Schrock, president of Qualcomm CDMA Technologies. "ChipPAC's ability to serve local customers and supply chains in China, and provide back-end assembly and test facilities, complements QCT's CDMA integrated circuit and system software expertise, and will enhance the productivity of both companies."
ChipPAC is one of the largest independent suppliers of high-end test and packaging solutions, including ball grid array (BGA) packages, the industry's most advanced, mass-produced semiconductor package. The Company also provides advanced packaging services that address the needs of semiconductors used in wireless and wire line communications, including flip-chip, chip-scale, and stacked die technologies. ChipPAC employs more than 7,000 professionals, with worldwide headquarters located in Santa Clara, Calif. Its ISO 9002-certified manufacturing facilities are located in Inchon, Korea, Shanghai, China, and Kuala Lumpur, Malaysia. Additional information is available at http://www.chippac.com.
QCT is a developer and supplier of CDMA integrated circuits, hardware and software solutions, and tools, with more than 118 million cumulative shipments of MSM chips worldwide. QCT offers wireless position location technology by SnapTrack, a wholly owned subsidiary of Qualcomm. QCT supplies chipsets to the world's leading CDMA handset and infrastructure manufacturers including: Acer Peripherals, Inc., ALPS ELECTRIC CO., LTD.; CASIO COMPUTER CO., LTD.; FUJITSU LIMITED; Hitachi, Ltd.; Hyundai Electronics Industries Co., Ltd.; KYOCERA CORPORATION; LG Information and Communications, Ltd.; Samsung Electronics Ltd.; SANYO Electric Co., Ltd.; and Toshiba Corporation, among others.
Qualcomm Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's CDMA digital technology. The Company's business areas include CDMA integrated circuits and system software; technology licensing; Eudora® email software for Windows® and Macintosh® computing platforms; digital cinema systems; and satellite-based systems including portions of the Globalstar™ system and wireless fleet management systems, OmniTRACS® and OmniExpress™. Qualcomm owns patents that are essential to all of the CDMA wireless telecommunications standards that have been adopted or proposed for adoption by standards-setting bodies worldwide. Qualcomm has licensed its essential CDMA patent portfolio to more than 90 telecommunications equipment manufacturers worldwide. Headquartered in San Diego, Calif., Qualcomm is included in theS&P500 Index and is a 2000 FORTUNE 500® company traded on The Nasdaq Stock Market® under the ticker symbol QCOM.
Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties, including the Company's ability to successfully design and have manufactured significant quantities of CDMA components on a timely and profitable basis, the extent and speed to which CDMA is deployed, change in economic conditions of the various markets the Company serves, as well as the other risks detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended September 24, 2000, and most recent Form 10-Q.