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Crolles2 Alliance Partners Pool Research Efforts in Advanced CMOS Wafer Probing and Assembly

31 January 2005

The Crolles2 Alliance partners Freescale Semiconductor (NYSE:FSL; NYSE:FSL.B), Philips (NYSE:PHG; AEX:PHI) and STMicroelectronics (NYSE:STM) have extended the scope of their joint semiconductor R&D activities to include R&D related to wafer testing and packaging, in addition to the original development of sub 100-nm CMOS process technologies.

"The combined expertise of Freescale, STMicroelectronics and Philips will provide the Crolles2 Alliance with an industry-leading packaging and test foundation. This agreement will enable future generations of semiconductor technologies supporting applications in the automotive, consumer, industrial, networking and wireless markets," said the Alliance members in a joint statement from Rene Penning de Vries, senior vice president and chief technology officer, Philips Semiconductors; Claudine Simson, chief technology officer, Freescale Semiconductor; and Laurent Bosson, corporate vice-president, Front-End Technology and Manufacturing, STMicroelectronics.

This agreement reflects the special needs of wafer testing and packaging for devices produced on 300-mm wafers in 90-nm, 65-nm CMOS and beyond. It will look at all aspects of post-fabrication wafer processing including probing, grinding, sawing, die attach, wire-bonding, flip chip and package molding techniques as well as optimization of bond-pad stack design.

"New materials used in 65-nm processes, such as ultra-low K dielectrics, significantly change the nature of the silicon that you have to handle during assembly and test," the Alliance said. "This means that existing equipment and processes have to be refined to maintain high production yields."

The expanded relationship builds on two years of successful collaboration in the semiconductor industry's largest R&D alliance. By combining efforts, alliance members have achieved several milestones in 90-nm production and 65-nm process development.

The partners will establish a new research laboratory in Grenoble (France) staffed by about 20 scientists and technicians drawn from the three companies. The partners now have more than 1000 employees working on front-end process development in Crolles, near Grenoble.

The lab will focus on bond-pad stack design and the assessment of low-stress probing, sawing and assembly processes including laser cutting and low-stress molding materials. It will also investigate requirements specification for the next generation of assembly and test equipment. The new Crolles2 Alliance assembly and test R&D team will also work closely with key equipment suppliers.

All three companies now have experience in the production and handling of 300-mm wafers produced on the Alliance's 90-nm CMOS production line in Crolles (France). This new expansion of the Alliance for extended R&D in assembly and test will help the Alliance partners remain in-line with the ITRS roadmap for process introduction and at the leading edge of assembly and test technology. Ultimately, it will help to ensure timely high-volume delivery of devices fabricated in these new processes to their customers.

About the Crolles2 Alliance

Under a five-year agreement extending through to December 2007, the Crolles2 Alliance brings together STMicroelectronics, Philips and Freescale Semiconductor, Inc., in an alliance of unprecedented scope in the microelectronics sector. Their joint Crolles2 center will focus on specific technologies at the forefront of semiconductor R&D: baseline CMOS processing, embedded memories (static, dynamic and magnetic RAM), Silicon-On-Insulator, analog CMOS, advanced process modules, advanced copper interconnect, low-power designs and RF capabilities. Starting at 90-nm, the alliance will continue on and develop CMOS processes at 65-nm, 45-nm and, ultimately, the 32-nm node. The Alliance has already demonstrated successful cooperation between the partners with the early availability of the industry's first 90-nm CMOS design platform and cell libraries for system-on-chip solutions.

About Freescale Semiconductor

Freescale Semiconductor, Inc. (NYSE:FSL; NYSE:FSL.B) is a global leader in the design and manufacture of embedded semiconductors for the automotive, consumer, industrial, networking and wireless markets. Freescale became a publicly traded company in July 2004 after more than 50 years as part of Motorola, Inc. The company is based in Austin, Texas, and has design, research and development, manufacturing or sales operations in more than 30 countries. Freescale, a member of the S&P 500®, is one of the world's largest semiconductor companies with 2004 sales of $5.7 billion (US). www.freescale.com

About Royal Philips Electronics

Royal Philips Electronics of the Netherlands (NYSE:PHG; AEX:PHI) is one of the world's biggest electronics companies and Europe's largest, with sales of EUR 30.3 billion in 2004. With activities in the three interlocking domains of healthcare, lifestyle and technology and 161,500 employees in more than 60 countries, it has market leadership positions in medical diagnostic imaging and patient monitoring, color television sets, electric shavers, lighting and silicon system solutions. News from Philips is located at www.semiconductors.philips.com.

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 2004, the Company's net revenues were $8.76 billion and net earnings were $601 million. Further information on ST can be found at www.st.com.

Contact:
Crolles2 Alliance
Freescale Semiconductor
Europe, Middle East, Africa:
Lauren Massicot, +33-0-1-69-35-77-12
email: laurent.massicot@freescale.com
or
North America:
Andrea Crocker, 512-895-7714
email: andrea.crocker@freescale.com
or
Asia Pacific:
Gloria Shiu, +852-2661-8237
email: gloria.shiu@freescale.com
or
STMicroelectronics
Maria Grazia Prestini, +41-2-29-29-69-45
email: mariagrazia.prestini@st.com
or
Michael Markowitz, 212-821-8959
email: michael.markowitz@st.com
or
Philips
Europe:
Marijke Sas, +31-40-272-2091
email: marijke.sas@philips.com
or