CARSEM EXPANDS SiP (System-in-Package) CAPACITY

Scotts Valley, CA-March 5, 2003-Carsem, a leading provider of turnkey packaging and test services to the semiconductor industry, announced today they are in the process of expanding their SiP (System-in-Package), MCM (Multi-Chip- Module) and SSBGA (Small Scale Ball Grid Array) assembly and test capacity in order to support an expected three-fold increase in customer demand during 2003.

According to Paul Smith, Carsem's Director of Marketing, "we have been working with several key customers on multiple turnkey SiP and MCM development programs and, during the last few quarters, we have seen a significant growth in volumes using both our wire bond and flip chip technology. The majority of these products require our RF final test solutions as well. Many of these customers have been very successful in the introduction of their new products using this package technology and we are seeing a major increase in their forecasted demand."

SiP is the advanced technology of placing multiple IC's and passive components into a single package, which is typically an array package. MCM is a similar technology but without passive components. Carsem can integrate a variety of die technologies and discrete components using flip chip, wire bond and stacked die on organic (BT) and ceramic (LTCC) substrates in both BGA (Ball Grid Array), and LGA (Land Grid Array) options. SiP's and MCM's are customized for each customer's application with typical package body sizes of 3x3 mm to 15x15 mm, ball/land counts from 8 to over 200, pitches as small as 0.5mm, and passive component sizes as small as 0201. The SSBGA package is a single die in an array package.

Smith further stated, "Many of our customers are deciding to use the SiP or MCM approach to develop new products rather than the more costly and time consuming SOC (System on Chip). The industry is very dynamic and these solutions offer our customers a great deal of flexibility to meet the constantly changing demands. Our customers can go from design concept to volume production in a matter of weeks, not the several months to a few years associated with SOC. Carsem's ability to design, manufacture and test the more complicated SiP has demonstrated our strengths in the array package and, as a result, we are seeing our customers increase their single die SSBGA volumes as well."

David Comley, Group Managing Director of Carsem Malaysia, stated, "the tremendous growth we have seen in this advanced technology has been very encouraging. We have supported our customers throughout the recent ramp-up and Carsem is making a significant investment to continue to meet our customer's increasing needs."

About Carsem
Carsem is a leading provider of turnkey packaging and test services to the semiconductor industry, and offers one of the widest ranges of package & test portfolios in the world. To meet the growing demands of the telecommunications and wireless markets for smaller, faster, thermally-efficient devices, Carsem's portfolio includes several advanced technologies, such as the Micro Leadframe Package (MLP), Small Scale Ball Grid Array (SSBGA), Flip Chip On Leadframe (FCOL), and a SiP (System-in-Package) capability. Carsem also offers a full range of turnkey test services for RF, mixed-signal, linear, digital and power devices. Our factories maintain world-class quality standards having achieved SAC Level 1, ISO-9001, ISO-14001, QS-9000, TS16949 certifications, and are supported with a global network of sales and engineering support offices. Carsem is a member of the Hong Leong Group with factories located in Ipoh, Malaysia, Suzhou, China and sales offices across the USA, plus the UK. Carsem, Inc. sales headquarters is located at 269 Mt. Hermon Road, Suite 104, Scotts Valley, CA 95066, phone (831) 438-6861, fax (831) 438-6863, web site: www.carsem.com.