HHNEC, SST Target Smartcard Market with Advanced Flash Memory

11/4/2003 - SST (Silicon Storage Technology, Inc., NASDAQ: SSTI), a leader in flash memory technology, and Shanghai Hua Hong NEC Electronics Co., Ltd. (HHNEC), one of China’s leading semiconductor foundries, announced the companies have expanded their relationship to enable HHNEC to serve as a foundry for embedded flash solutions based on SST’s 0.25 micron SuperFlash technology. In addition, HHNEC will license the SST 0.25 micron SuperFlash technology to manufacture ASICs, microcontrollers and other products for HHNEC’s customers. As part of the agreement, SST will develop and license SuperFlash intellectual property blocks to customers for manufacturing at HHNEC. HHNEC will also continue to manufacture products based on SST’s 0.35 micron technology, as announced by the companies last year.

“We have successfully established SST’s 0.35 micron SuperFlash technology and are currently at full production,” said Peng Fang, president of HHNEC. “The SuperFlash architecture is well suited for a wide range of products and we are excited to implement the 0.25 micron technology to continue to help our customers meet their evolving design goals. In addition, by licensing SST’s SuperFlash technology we can expand our capabilities to assist customers in quickly bringing a variety of highly integrated advanced solutions to the Chinese market. HHNEC has been the largest embedded EEPROM supplier in China. The licensing of 0.25 micron SuperFlash complements HHNEC's offering in non-volatile memory technologies and we will be able to maintain our leadership in embedded solutions.”

Bing Yeh, president and CEO of SST, said, “SST is committed to becoming a major player of the rapidly growing semiconductor market in China. The move to bring 0.25 micron SuperFlash technology to China with our partner HHNEC further strengthens our position as the leading provider of advanced flash solutions for this market. With today’s announcement, customers of SST China, our Shanghai-based subsidiary, will have expanded access to our technology through one of the most well-established and successful foundries in China.”

SST will provide SuperFlash IP blocks to customers. Optimized for the 0.25 micron SuperFlash process, the SuperFlash IP blocks include variety of density, memory configuration and sector size to meet wide range of applications. These IP cores will be developed by the SST China design team located in Zhangjiang Hi-Tech Park , Shanghai.

SST was among the first U.S.-based flash memory companies to implement a strategy addressing China’s rapidly growing semiconductor industry, and was the first embedded flash provider to serve the Chinese design community. SST established its wholly owned subsidiary, SST China, in March 2001 to provide embedded flash memory design and manufacturing to Chinese design houses, as well as to develop and sell flash memory, Flash/RAM ComboMemory and embedded controller products in the Chinese marketplace.

Shanghai Hua Hong NEC Electronics Limited (HHNEC) is the first 8 wafer foundry provider in mainland China with state-of-the-art CMOS Process technology, manufacturing equipment and ISO (both 9001 and 14000) qualified service support system. Founded on July 17th, 1997, HHNEC is a joint venture of Shanghai Hua Hong Group, NEC Corporation and Jazz Semiconductor with a registered capital of US$700 million and total investment of US$1.2 Billion, which is known as the core of national 909 Project. HHNEC serves as the wafer Foundry provider for customers from both abroad and domestic China. Its production capacity will extend to be 32,000 wafers per month in 2003 equipped with 0.18 micron technology capability.

About SuperFlash Technology
SST's SuperFlash technology is a NOR type, split-gate cell architecture which uses a reliable thick-oxide process with fewer manufacturing steps resulting in a low-cost, nonvolatile memory solution with excellent data retention and higher reliability. The split-gate NOR SuperFlash architecture facilitates a simple and flexible design suitable for high performance, high reliability, small or medium sector size, in- or off-system programming and a variety of densities, all in a single CMOS-compatible technology.

About Silicon Storage Technology, Inc.
Headquartered in Sunnyvale, California, SST designs, manufactures and markets a diversified range of nonvolatile memory solutions, based on proprietary, patented SuperFlash technology, for high volume applications in the digital consumer, networking, wireless communications and Internet computing markets. SST's product families include various densities of high functionality flash memory components, flash mass storage products and flash microcontrollers. SST also offers its SuperFlash technology for embedded applications through its world-class manufacturing partners and technology licensees including 1st Silicon (Malaysia) Sdn. Bhd., Grace Semiconductor Manufacturing Corporation (GSMC), IBM, Motorola, National Semiconductor, NEC Corporation, Oki Electric Industry Co. Ltd., Samsung Electronics Co. Ltd., SANYO Electric Co., Ltd., Seiko Epson Corp., Shanghai Hua Hong NEC Electronics Co., Ltd., Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC), Toshiba Corporation, Vanguard International Semiconductor Corporation, and Winbond Electronics Corp. TSMC offers embedded SuperFlash under its trademark Emb-FLASH. Further information on SST can be found on the company's Web site at http://www.sst.com.

For more information about SST and the company’s comprehensive list of product offerings, please call 1-888/SST-CHIP. Information can also be requested via email to literature@sst.com or through SST’s Web site at http://www.sst.com. SST’s head office is located at 1171 Sonora Court, Sunnyvale, Calif.; telephone: 408/735-9110; fax: 408/735-9036.

The SST logo and SuperFlash are registered trademarks of Silicon Storage Technology, Inc. Emb-FLASH is a trademark of TSMC.

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