ChipMOS, Novatek Prolong Long-term Agreement

(July 21, 2005) Hsinchu, Taiwan &#8212 ChipMOS Technologies (Bermuda) Ltd. (ChipMOS) announces that its 70% owned subsidiary, ChipMOS Technologies Inc. (ChipMOS Taiwan), has extended its existing long-term agreement with Novatek Microelectronics Corp. Ltd. (Novatek) through 2008. The two companies have worked together since 2003.

Under the terms of the newly extended agreement, Novatek has revised its tape-carrier-package/chip-on-film (TCP/COF) future requirements with significantly increasing demand to ChipMOS, and will shift additional percentage increases of its chip-on-glass (COG) business to ChipMOS. ChipMOS Taiwan commits to reserving the required capacity for LCD driver IC assembly and testing services for Novatek until the end of 2008.

”Novatek is a global leader in the LCD driver IC market and an important strategic customer to ChipMOS,” says S.J. Cheng, ChipMOS’ chairman and CEO. “We are pleased to extend our long-term, mutually beneficial relationship. We remain committed to providing the vertically integrated testing and assembly services that have made our relationship a success.”


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