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Silicon Laboratories and ASE announce milestone shipment of 10 million tested integrated circuits

Successful execution results in strengthened relationship for long-term test outsourcing

PAJU, South Korea and AUSTIN, Texas; March 27, 2003 - Advanced Semiconductor Engineering Incorporated (ASE, TAIEX: 2311, NYSE: ASX), one of the world's largest semiconductor packaging and testing companies, and Silicon Laboratories Inc. (NASDAQ: SLAB), a global leader in mixed signal IC technology, today announced a 10 million unit shipment milestone of Silicon Laboratories' innovative mixed-signal ICs. This significant milestone is a result of the companies' partnership for advanced testing at ASE's Korea facility.

In 2002, Silicon Laboratories began working with ASE on outsourced test and final production. As a result of the successful partnership, Silicon Laboratories was able to fulfill the high demand for their products, shipping 10 million parts in less than one year.

 
Silicon Laboratories is a fast growing fabless semiconductor company that leverages the use of packaging and testing service providers, such as ASE, for reliable, final production of the company's advanced IC solutions. This outsourcing model is highly capital efficient, allowing Silicon Laboratories to focus on its core design expertise while relying on the technology and engineering resources of test and manufacturing experts like ASE.
 
"We view this collaboration as a significant milestone for both Silicon Laboratories and ASE Korea, reaping the benefits of outsourcing," said Tien Wu, president of ASE Americas and Europe. "ASE Korea's facility in Paju has benefited from the country's rapid development and leadership in communications technology, which attracts companies such as Silicon Laboratories to outsource in Korea," he added.
 
"Asia is the manufacturing hub for most of our customers' end products. Our partnership with ASE allows us to integrate our manufacturing processes closer to many of our customers, significantly improving the cycle time," said Dan Artusi, president and chief operating officer of Silicon Laboratories. "ASE Korea's expertise in communications IC testing technologies is an ideal counterpart for our stringent requirements of high performance and reliability."
 
Korea has become a major manufacturing resource for semiconductor companies worldwide. Rapid expansion of facilities and on-going investment in world-class technology has enabled Korea to emerge as a leader for final test and production for the semiconductor industry.
 
"Customers like Silicon Laboratories, recognize not only the value of our test capabilities but, more importantly, that they can tap into our highly experienced engineering team's knowledge in test programs and solutions," said Jim Stilson, president and general manager, ASE Korea Inc. "ASE Korea's RF core competency, coupled with our expertise in a broad range of component and module packaging enables us to offer our customers full turnkey service from wafer probe through direct ship."
 
 
About ASE Group

The ASE Group is one of the world's largest providers of semiconductor manufacturing services. As a global leader geared towards meeting the industry's ever growing needs for faster, smaller and higher performing chips, the Group develops and offers a wide portfolio of technology and solutions including IC test program design, front-end engineering test, wafer probe, wafer bump, substrate design and supply, wafer level package, flip chip, system-in-package, final test and electronic manufacturing services through Universal Scientific Industrial Co Ltd, a member of the ASE Group. The Group generated revenues of $2.33 billion in 2002 and employs 24,000 people worldwide. For more information about the ASE Group, visit http://www.aseglobal.com

 

About Silicon Laboratories

 
Silicon Laboratories Inc. designs, manufactures and markets proprietary high-performance mixed-signal integrated circuits (ICs) for a broad range of communications markets. Silicon Laboratories is an ISO9001-certified manufacturer and has applied for over 161 patents on its mixed-signal technology. Silicon Laboratories was incorporated in 1996 and is based in Austin, Texas. Additional information about Silicon Laboratories is available at http://www.silabs.com or through the toll-free investor relations line at 1-877-411-SLAB (7522).
 
 
Cautionary Language

 
This press release contains certain forward-looking statements based on Silicon Laboratories' current expectations. The words "believe," "expect," "intend," "plan," "project," "will" and similar phrases as they relate to Silicon Laboratories are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of Silicon Laboratories, and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations, which factors that are detailed in Silicon Laboratories' filings with the SEC, particularly the Form 10-K filed January 22, 2003. Unless otherwise required by law, Silicon Laboratories expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any result or change in expectations.