Fairchild Semiconductor Announces Foundry Agreement with Jilin Sino-Microelectronics

Business Wire, Oct 15, 2004

SOUTH PORTLAND, Maine -- Fairchild Semiconductor (NYSE: FCS):

--Increases Capacity to Meet Demand for Fairchild's Power Semiconductors

--Provides Cost-Effective Manufacturing for Mature Products

Fairchild Semiconductor (NYSE: FCS), the largest global supplier of high performance products that optimize system power, today announced a five year foundry agreement with Jilin Sino-Microelectronics (JSMC) to manufacture selected Fairchild MOSFET and bipolar power products. JSMC will utilize their recently completed wafer fab in Jilin City, Jilin Province in China.

Jilin Sino-Microelectronics will provide additional capacity for Fairchild's more mature power products to support its customers' growth. This complements Fairchild's strategy to increase the in-house manufacturing of its top-line power products. Fairchild recently announced the expansion of its Mountaintop, Pennsylvania, USA plant dedicated to power components and is rapidly ramping production at its new Suzhou, China assembly and test facility.

"The demand for our power products remains broad-based with particular strength in the consumer, ultra portable and industrial end markets," said Kirk Pond, president, CEO and chairman of the Board of Fairchild Semiconductor. "Our focus is to support customer demand by responding quickly to their requirements. Asia Pacific is the fastest growing region globally and this agreement with Jilin Sino-Microelectronics enhances our ability to deliver products locally, quickly and cost effectively. This agreement demonstrates our commitment to the region, hallmarked by our recent investment in a new production facility in Suzhou. We look forward to working closely with Jilin Sino-Microelectronics and have full confidence in their engineering and manufacturing teams."

"Jilin Sino-Microelectronics anticipates a long and mutually productive relationship with Fairchild Semiconductor," said Xia Zengwen, chairman of Jilin Sino-Microelectronics. "Our new wafer fabrication plant, staffed with skilled employees, stands ready to help Fairchild meet the growing demand for its power products. This partnership offers a great opportunity for both companies to individually grow their businesses and develop new products for local China consumption and the global market."

Fairchild, The Power Franchise(R), supplies power products used in every electronic application, from flat panel screens to cell phones, handsets, notebooks, digital cameras, automobiles and household appliances. Efficiently converting, controlling and conditioning power in these applications is critical to their success.

"Our targeted power markets continue to outgrow the overall semiconductor industry," Pond continued. "We lead the worldwide power product market in power analog and power discrete products, which represent 77% of our overall revenue."

About JSMC

Jilin Sino-Microelectronics Co., Ltd., (JSMC) was established in 1999 and listed on the Shanghai Exchange in March 2001. The company is a leading power semiconductor supplier in China with strength in design, development, production, packaging/testing, sales and after-sale service. JSMC's products have reached IEC standards and passed QS9000 and ISO9001 Quality System Certification as well as ISO140001 Environment Management Certification. JSMC has the wafer manufacturing capacity of one million slices per year and the assembly/test capacity of 600 million units per year. Its customers are known manufacturers of color TV sets, lighting, computer and communications equipment in China.

About Fairchild Semiconductor

Fairchild Semiconductor (NYSE: FCS) is the leading global supplier of high performance power products critical to today's leading electronic applications in the computing, communications, consumer, industrial and automotive segments. As The Power Franchise(R), Fairchild offers the industry's broadest portfolio of components that optimize system power through minimization, conversion, management and distribution functions. Fairchild's 9,000 employees design, manufacture and market power, analog & mixed signal, interface, logic, and optoelectronics products from its headquarters in South Portland, Maine, USA and numerous locations around the world. Please contact us on the web at www.fairchildsemi.com.