Chartered Semiconductor Manufacturing (Nasdaq: CHRT and SGX-ST: Chartered), one of the world’s top three dedicated semiconductor foundries, and ZTE Corporation (Shenzhen Stock Exchange (SSE), People’s Republic of China (PRC) Code: 0063), the leading telecommunication equipment manufacturer and network solutions provider in China, today announced their collaboration to produce integrated circuits (ICs) targeting switches and routers.

Several IC products based on various technology nodes have completed process qualification, and production is planned for the first quarter of 2004. These products utilize Chartered’s proven BiCMOS and analog processes. As part of their ongoing collaboration, the companies continue to engage in various qualification and prototyping activities involving multiple products and technology nodes.

“ZTE is extremely pleased to collaborate with Chartered as our long-term, trusted foundry partner for the manufacturing of state-of-art ICs targeting telecommunication networking solutions,” said Mr. Guo Changsong, ASIC product general manager of ZTE. “Through its network of qualified partners, Chartered has supported us with a holistic ecosystem of value-added design and back-end solutions that delivers design support, manufacturing, and IC test and packaging services. As a result, our designers were able to achieve significant time efficiencies along the value chain while attaining high yields and performance functionality at the chip level.”

“Recognizing the needs of the semiconductor market in China, Chartered’s goal is to provide complete yet localized solutions that will enable fast-growing semiconductor companies, such as ZTE, to commercialize their products both within China and globally,” said Mr. Bo Cheng, vice president and general manager of Asia Pacific for Chartered. “Chartered is pleased with the success ZTE has achieved in leveraging an array of Chartered’s offerings to develop complete solutions and bring products to market quickly.”

About Chartered

Chartered Semiconductor Manufacturing, one of the world’s top three dedicated semiconductor foundries, is forging a customized approach to outsourced semiconductor manufacturing by building lasting and collaborative partnerships with its customers. The Company provides flexible and cost-effective manufacturing solutions for customers, enabling the convergence of communications, computing and consumer markets.  In Singapore, Chartered operates five fabrication facilities and has a sixth fab, which will be developed as a 300mm facility.

A company with both global presence and perspective, Chartered is traded on both the Nasdaq Stock Market (Nasdaq: CHRT) and on the Singapore Exchange (SGX-ST: CHARTERED). Chartered’s 3,500 employees are based at 11 locations around the world. Information about Chartered can be found at www.charteredsemi.com.

About ZTE

ZTE Corporation is one of the leading communication solutions providers. Listed on the Shenzhen Stock Exchange (close to Hong Kong) since 1997, ZTE maximizes shareholders’ value through its commitment to customers, advanced technologies and complete services. ZTE’s globalization strategy in terms of talent marketing and capitalization not only enables ZTE to become competitive internationally, but also provides the opportunity for investors at home and abroad to share ZTE’s success.

In 2002, ZTE recognized revenues of US$1.33 billion and net income of US$ 68 millions. Information about ZTE can be found at www.zte.com.cn.

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Chartered Safe Harbour Statement under the provisions of the United States Private Securities Litigation Reform Act of 1995

This news release may contain forward-looking statements, as defined in the safe harbour provisions of the U.S. Private Securities Litigation Reform Act of 1995.  These forward-looking statements reflect Chartered’s current views with respect to future events, and are subject to certain risks and uncertainties, which could cause actual results to differ materially from historical results or those anticipated. Among the factors that could cause actual results to differ materially are : changes in market outlook and trends; the rate of semiconductor market recovery; economic conditions in China, the United States as well as globally; customer demands; the successful implementation of our collaboration with ZTE Corporation; the performance level in our fabrication facilities and competition. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained.  In addition to the foregoing factors, a description of certain other risks and uncertainties which could cause actual results to differ materially can be found in the section captioned “Risk Factors” in our Annual Report on Form 20-F and our First Quarter 2003 Quarterly Report on Form 6-K filed with the U.S. Securities and Exchange Commission.  You are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view of management on future events.  We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.