SST and SANYO Continue to Expand Flash Memory Technology in China

11/24/2003 - SST (Silicon Storage Technology, Inc., NASDAQ: SSTI), a leader in flash memory technology, and SANYO Electric Co., Ltd. celebrated 10 years of collaboration in flash memory technology and highlighted plans to continue expanding their businesses into Chinaís burgeoning high-technology sector. As part of the 10-year anniversary celebration, executives from SST and SANYO hosted a press conference today at the Shangri-La Hotel in Shanghai, China along with representatives from their foundry partners in China: Grace Semiconductor Manufacturing Corporation(Grace) and Shanghai Hua Hong NEC Electronic Co., Ltd. (HHNEC). The group announced that SSTís non-self-aligned SuperFlash is installed and ready for mass production at HHNEC, while the self-aligned SuperFlash technology is installed and ready for mass production at Grace. Both SST and SANYO plan to manufacture high-volume flash-based products on the Grace and HHNEC fabrication lines, thereby providing local Chinese technology companies with high-quality, advanced ICs including SSTís memory products and SANYOís embedded products for consumer applications. Furthermore, SST and SANYO reiterated their commitment to continue developing the foundry capabilities of Grace and HHNEC with more advanced process technologies to serve the evolving needs of Chinese design houses and customers worldwide.

The enduring business relationship between SST and SANYO has included second-sourcing, technology licensing, joint product development and wafer foundry agreements. Over the course of their relationship, hundreds of millions of SSTís SuperFlash products have been manufactured by SANYOís foundry.

"Over the past 10 years, SST and SANYO have collaborated in advancing SuperFlash technology scaling and evolving it into the self-aligned second generation memory cell and we are looking forward to many more years of collaboration, taking advantage of SSTís SuperFlash technology installed base and Sanyoís consumer electronic strength in the market place," said Bing Yeh, president and CEO of SST. "Together, we have been able to make great inroads into the Chinese market by bringing SuperFlash technology and high-volume manufacturing to leading Chinese foundries such as Grace and HHNEC. SST continues to view China as a huge growth opportunity and we, along with SANYO and our Chinese foundry partners, are committed to providing industry leading flash memory technology and products to support the growing need of the Chinese market."

Tadahiko Tanaka, president of SANYO Semiconductor Company, said, "Through our multi-faceted technology agreements with SST, we have been able to successfully incorporate flash memory technology into system solutions for our customers and address new segments of the market through co-developed specialty products for next-generation digital consumer applications. In addition, our relationship with SST has been instrumental in helping us gain a strong foothold in the China technology market. Along with SST, we are currently working with two of the leading fabs in China and are continuing to look for new opportunities to support the regionís technology development."

Grace is one of the most prominent, state-of-the-art deep sub-micron wafer fabs in China, and will benefit from the high volume production opportunities leveraged through SSTís SuperFlash technology and SANYOís embedded products for consumer applications.

Dr. Nasa Tsai, president of Grace, said, "Having SSTís advanced self-aligned SuperFlash technology installed in our fab and with SANYO on board as a high-volume customer shows that our state-of-the-art manufacturing facility is ready to compete on a global scale. As an early investor, SST was an important factor in bringing our foundry plans to reality and we are happy to continue working with them and SANYO."

Peng Fang, president of HHNEC, said, "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 SSTís SuperFlash technology we can expand our capabilities to assist customers in quickly bringing a variety of highly integrated advanced solutions to the Chinese market."

Recently, SST announced it had installed and licensed 0.25-micron embedded SuperFlash technology at HHNEC. HHNEC will serve as a foundry for embedded flash products based on SSTís SuperFlash technology, including products designed by SANYO as well as China-based and abroad design houses.

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 (Grace), 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. (HHNEC), 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

About SANYO Semiconductor Company and SANYO Display Company
SANYO Semiconductor Company and SANYO Display Company belong to Component Group, one of four company groups consisting SANYO Electric Co., Ltd. and which engages in the electronic components business.

In the fiscal year 2002 (ended March 31, 2003) the Companies achieved 311 billion yen (US$2.48 Billion) with about 15,000 employees including those of their subsidiaries. The Companies develop and manufacture semiconductor devices and flat panel displays for leading applications in the electronic industry, such as mobile communication equipment, PC/PC related products and analog/digital AV equipment.

As for manufacturing facilities, there are nine in Japan and seven in Asia-Pacific region. Sales bases of the Companies are located in North America, Europe, Asia and Japan.

Further information is available at

About Grace Semiconductor Manufacturing Corporation
Grace Semiconductor Manufacturing Corporation (Grace) is a pure IC foundry company that specializes in integrated circuit (IC) fabrication. Graceís mission is to become a leading foundry in China by supplying high quality and advanced process technology to domestic and global customers. Grace is located in Zhangjiang Hi-Tech Park in Pudong, Shanghai, with a total land area of 240,000 square meters and a first-phase investment of $1.63 billion. Two fabs based on 12-inch wafer specifications have been constructed. Currently, Fab 1A (8") is in full production. It is expected to reach a monthly capacity of 27,000 8-inch wafers by the 2nd half of 2004. For further information, please visit Graceís website at

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.

For more information about SST and the companyís comprehensive list of product offerings, please call 1-888/SST-CHIP. Information can also be requested via email to or through SSTís Web site at SSTís 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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