SST, Powerchip Develop Third-Generation SuperFlash Technology

12/2/2003 - SST (Silicon Storage Technology, Inc., NASDAQ: SSTI) announced that it and Powerchip Semiconductor Corporation (“PSC”), Taiwan’s leading DRAM manufacturer, have teamed up to develop its third-generation SuperFlash memory technology. The new self-aligned, third-generation SuperFlash cell currently under development at PSC is based on a leading edge 0.11µ process technology. Once established, the parties plan to scale it down to 90 and 65 nanometer (nm) nodes. SST’s new generation SuperFlash is capable of delivering very high density memory products based on its well-established NOR architecture, making it ideal for data storage applications that traditionally have been addressed by flash memories with NAND architectures. The first product under development is a 2Gbit flash media with pin-outs and electrical specifications compatible with industry-standard NAND products. SST and PSC have recently verified the new-generation SuperFlash memory cell structure and electrical data. The parties plan to complete the technology development during 2004 in order for volume production of a 2Gbit product in 2005.

Under terms of the agreement, both companies agree to utilize PSC’s 300mm manufacturing facilities to produce SST-brand products and PSC-brand licensed data storage products. SST will collect royalty from PSC based on the sales of the PSC-brand SuperFlash products.

SST’s SuperFlash is a leading flash memory technology with proven track record in the industry. Besides making its own products based on SuperFlash, SST also license the SuperFlash technology to world-class semiconductor companies, including IBM, Motorola, NEC, Samsung, Toshiba and TSMC. As of today, SST and its licensees have shipped more than 2.5 billion units of SuperFlash-based products since 1993. The first-generation SuperFlash, introduced in 1993, has been in volume production covering memory densities from 256K to 16Mbits. The second-generation SuperFlash, started production earlier this year, is intended to cover memory densities up to 256Mbits. The third-generation SuperFlash, under development since 2002, is expected to cover memory densities from 256Mbit to 16Gbits. SST believes its SuperFlash is the most versatile flash memory technology for embedded, code storage and data storage applications.

“Our third-generation SuperFlash technology is a critical element in enabling NOR flash memory to achieve the densities and speeds required to effectively compete in the data storage and other high-density markets typically dominated by NAND flash memories,” said Bing Yeh, president and CEO of SST. “Through our development partnership with PSC, we believe we will be able to extend our cost-effective, scalable technology to deep sub-micron levels and deliver the density and performance our customers will need for the next wave of consumer and communication products. We believe the flash data storage market will become a bigger market than DRAM. By teaming up with PSC and exploiting our third-generation SuperFlash technology, we are committed to become a major player in the high density data storage market.”

“PSC is now the largest DRAM producer in Taiwan. And at our rate of growth, we expect to be ranked in the top four worldwide soon. With our volume proven advanced 300mm fab and our growing world-class foundry service arm, our semiconductor production expertise is second to none,” said Dr. Frank Huang , chairman of PSC, “Being in the memory industry, we have always kept an eye on the development of flash technologies. Our relationship with SST was naturally established to exploit our companies’ synergies: SST’s advanced Flash technology and PSC’s cost efficient production and distribution capabilities. At PSC, we are dedicated to the expansion of our product offering and SuperFlash will allow us to address new high end data flash markets.”

Dr. Brian Shieh, president of PSC said, “Given our proven track record in bringing advanced memory process technologies to mass production, we are confident in our ability to support the development partnership effort and mass production of SST’s industry-leading SuperFlash technology for the data storage market.”

About SuperFlash Technology
SST's SuperFlash technology is a NOR type, split-gate cell architecture which uses a reliable thick-oxide process resulting in a cost-effective, 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 selective 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., Powerchip Semiconductor Corporation, 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 Powerchip Semiconductor Corp.
PSC is a leader in DRAM manufacturing and foundry services. The Company was established in Taiwan’s Hsinchu Science-based Industrial Park in December 1994 and is currently listed in the TW GreTai Security Market (Stk ID: 5346). Since it’s founding, the Company has developed and forged a strong partnership with Mitsubishi Electric Corp., which has lead to their current alliance with Elpida Memory Inc. and Renesas Technology Corp. PSC is known to be a pioneer in memory semiconductor production, being one of the early adopters of a 300mm fabrication facility. PSC currently operates a 200mm fab for foundry services, a state of the art 300mm fab for advanced DRAM production, and has broken ground in 3Q03 to construct a new 300mm fab. For further inquiries, please refer to our website

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 or through SST’s Web site at 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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