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First Silicon Engineering Runs Begin at 1st Silicon, Adds US Top 20 Fabless Company to Customer Portfolio

KUCHING, Sarawak Malaysia----Sept. 22, 2000--1st Silicon (Malaysia) Sdn. Bhd. reached a major milestone towards qualification and production.

The Right Honorable YAB Datuk Patinggi Tan Sri (Dr.) Haji Abdul Taib Mahmud, Chief Minister of Sarawak, Datuk J.C. Fong, Chairman of 1st Silicon, together with Mr. Claudio G. Loddo, CEO of 1st Silicon, today officiated the start of silicon engineering runs at the company's new 200mm fab.

The start of 1st Silicon's engineering runs represent a major step towards production qualification, targeted to be completed by end of this year at the nation's first 200mm fab. This means a great deal to the people of Malaysia, especially those in the state of Sarawak. The global semiconductor industry also gains a significant foundry source to support the hyper-growth in semiconductor demands.

YAB Datuk Patinggi Tan Sri (Dr.) Haji Abdul Taib Mahmud, Chief Minister of Sarawak remarked, ``It is an extreme honor to witness this historic event. Malaysia's bold initiative in achieving Vision 2020 as a significantly improved economy is based on leading-edge semiconductor manufacturing self-sufficiency. Our nation has put together the infrastructure, including a very strong emphasis on educating our people to work in this world-class technological field. With 1st Silicon's first engineering runs, Malaysia marks its first 200mm foundry semiconductor run in the history of this country. We congratulate 1st Silicon on achieving this milestone and are excited about its plans for full production in Q1 2001.''

1st Silicon CEO, Mr. Claudio G. Loddo, remarked at the brief ceremonies, ``1st Silicon's fab 1 is coming on-line, on time. We completed hook up at the end of August with great support from our partners and suppliers. Qualification begins in earnest with these first engineering runs, and full qualification is expected by the end of Q4 2000.'' Mr. Loddo added, ``The recent addition of one of the top 20 Fabless companies to our growing customer portfolio shows that our aggressive accomplishments in making 1st Silicon operational as quickly as possible is most timely to serve the market demand and customer needs.''

About 1st Silicon (Malaysia) Sdn. Bhd.

1st Silicon is a dedicated semiconductor foundry founded in 1998 by the Malaysian State of Sarawak. 1st Silicon's 200mm wafer fab, with a capacity in excess of 30,000 wafers per month, will be operational in Q3 2000. The facility will commence production with 0.25im digital and mixed signal CMOS technology. Geometries of 0.18m and below will soon follow. SHARP is 1st Silicon's technology partner as well as its first customer. The Company has its headquarters in Kuching, Sarawak, Malaysia, and a US registered subsidiary corporation located in San Jose, California. 1st Silicon's homepage is www.1stsilicon.com.

NOTE: ``1st Silicon'' and the 1st Silicon logo are trademarks belonging to 1st Silicon (Malaysia) Sdn. Bhd.


Contact:
     For 1st Silicon --
     S.Y. Tan-Stahel, 408/943-8131
     Fax, 408/943-8135
     sytan-stahel@1stsilicon.com
     or
     Second Story Media (PR Counsel)
     Lawren Farber, 408/323-1618
     Fax, 408/323-1222
     lfarber@2ndstorymedia.com
     or
     MarCom Manager
     Allen R. Sangco, +60 82 354 888
     Fax, +60 82 363 330
     allens@1stsilicon.com
     or
     www.1stsilicon.com





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