6-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934

For the month of July 2010

Commission File Number: 000-29103

STATS CHIPPAC LTD.

(Translation of registrant’s name into English)

10 Ang Mo Kio Street 65
#05-17/20 Techpoint
Singapore 569059
(65) 6824-7777

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
þ Form 20-F          o Form 40-F

Note: The registrant deregistered and terminated its reporting obligations under the Securities Exchange Act of 1934 in August 2009 and is filing its annual report on Form 20-F as a voluntary filer.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

TABLE OF CONTENTS

Ex-99.1 Release of STATS ChipPAC Ltd. dated July 30, 2010

Ex-99.2 Financial Statements and Related Announcement for the three and six months ended June 27, 2010

Ex-99.3 Management's Discussion and Analysis of Financial condition and Results of Operations

Other Events

On July 30, 2010, STATS ChipPAC Ltd. issued a release announcing its second quarter 2010 results, its Financial Statements and Related Announcement for the three and six months ended June 27, 2010 and accompanying Management’s Discussion and Analysis of Financial Condition and Results of Operations, which are attached hereto as Exhibits 99.1, 99.2 and 99.3, respectively. The Financial Statements and Related Announcement is prepared in accordance with the rules of the SGX-ST Listing Manual.

Exhibit

99.1	Release of STATS ChipPAC Ltd. dated July 30, 2010
99.2	Financial Statements and Related Announcement for the three and six months ended June 27, 2010
99.3	Management’s Discussion and Analysis of Financial Condition and Results of Operations

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: July 30, 2010

STATS CHIPPAC LTD.
By:	/s/ Tan Lay Koon
Name:	Tan Lay Koon
Title:	President & Chief Executive Officer
By:	/s/ John Lau
Name:	John Lau
Title:	Chief Financial Officer

EXHIBIT INDEX

99.1	Release of STATS ChipPAC Ltd. dated July 30, 2010
99.2	Financial Statements and Related Announcement for the three and six months ended June 27, 2010
99.3	Management’s Discussion and Analysis of Financial Condition and Results of Operations

EX-99.1

Exhibit 99.1

STATS ChipPAC Reports Second Quarter 2010 Results

Singapore — 7/30/2010, United States — 7/30/2010 — STATS ChipPAC Ltd. (“STATS ChipPAC” or the “Company” — SGX-ST: STATSChP), a leading semiconductor test and advanced packaging service provider, today announced results for the second quarter 2010.

Tan Lay Koon, President and Chief Executive Officer of STATS ChipPAC, said, “We are pleased with our second quarter performance. Revenue for second quarter of 2010 increased by 35.7% to $435.3 million compared to the second quarter of 2009 and increased by 12.2% over the prior quarter. Our second quarter revenue reflected strong demand across all segments and was better than seasonal trend. As a result of higher savings from cost reduction effort and richer product mix, profitability for the quarter significantly improved over corresponding quarter a year ago.”

Net income for second quarter of 2010 was $37.3 million or $0.02 of net income per diluted ordinary share, compared to $2.2 million or $0.00 per diluted ordinary share in the second quarter of 2009 and net income of $27.5 million or $0.01 of net income per diluted ordinary share in the prior quarter.

John Lau, Chief Financial Officer of STATS ChipPAC, said, “Our gross margin in the second quarter of 2010 was 21.5% compared to 15.1% in the second quarter of 2009 and 20.0% in the prior quarter. Operating margin for second quarter of 2010 was 12.9% of revenue compared to 4.7% in the second quarter of 2009 and 11.2% in the prior quarter. Capital spending in the second quarter of 2010 was $67.7 million or 15.5% of revenue compared to $32.4 million or 10.1% of revenue in the second quarter of 2009, as we continued investments in wafer level packaging and 300mm eWLB manufacturing capacity. We ended the second quarter of 2010 with cash, cash equivalent and marketable securities of $381.1 million and debt of $451.4 million, compared to $368.1 million and $458.0 million, respectively, as of the fourth quarter of 2009.”

The Company has today announced that it has commenced a cash tender offer and consent solicitation in respect of its $213.0 million of 6.75% Senior Notes due 2011 (“Existing Notes”) and is concurrently offering senior notes (“New Notes”) in a private placement in furtherance of its capital reduction plans, details of which are contained in a separate press release.

Forward-looking Statements

Certain statements in this release are forward-looking statements that involve a number of risks and uncertainties that could cause actual events or results to differ materially from those described in this release. Factors that could cause actual results to differ include, but are not limited to, general business and economic conditions and the state of the semiconductor industry; prevailing market conditions; demand for end-use applications products such as communications equipment, consumer and multi-applications and personal computers; decisions by customers to discontinue outsourcing of test and packaging services; level of competition; our reliance on a small group of principal customers; our continued success in technological innovations; possible future application of push-down accounting;

STATS ChipPAC Ltd.
Company Registration No.: 199407932D
Headquarters: 10 Ang Mo Kio Street 65, #05-17/20 Techpoint,
Singapore 569059
www.statschippac.com

pricing pressures, including declines in average selling prices; intellectual property rights disputes and litigation; our ability to control operating expenses; our substantial level of indebtedness and access to credit markets; potential impairment charges; availability of financing; changes in our product mix; our capacity utilization; delays in acquiring or installing new equipment; limitations imposed by our financing arrangements which may limit our ability to maintain and grow our business; returns from research and development investments; changes in customer order patterns; shortages in supply of key components; customer credit risks; disruption of our operations; loss of key management or other personnel; defects or malfunctions in our testing equipment or packages; rescheduling or cancelling of customer orders; adverse tax and other financial consequences if the taxing authorities do not agree with our interpretation of the applicable tax laws; classification of our Company as a passive foreign investment company; our ability to develop and protect our intellectual property; changes in environmental laws and regulations; exchange rate fluctuations; regulatory approvals for further investments in our subsidiaries; majority ownership by Temasek Holdings (Private) Limited (“Temasek”) that may result in conflicting interests with Temasek and our affiliates; unsuccessful acquisitions and investments in other companies and businesses; labor union problems in South Korea; uncertainties of conducting business in China and changes in laws, currency policy and political instability in other countries in Asia; natural calamities and disasters, including outbreaks of epidemics and communicable diseases, the continued trading and listing of our ordinary shares on the Singapore Exchange Securities Trading Limited (“SGX-ST”); and other risks described from time to time in the Company’s filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F dated March 5, 2010. You should not unduly rely on such statements. We do not intend, and do not assume any obligation, to update any forward-looking statements to reflect subsequent events or circumstances.

Our 52-53 week fiscal year ends on the Sunday nearest and prior to December 31. Our fiscal quarters end on a Sunday and are generally thirteen weeks in length. Our second quarter of 2010 ended on June 27, 2010, while our second quarter of 2009 and fiscal year 2009 ended on June 28, 2009 and December 27, 2009, respectively. References to “US GAAP” are to Generally Accepted Accounting Principles as practiced in the United States of America and references to “$” are to the lawful currency of the United States of America.

No Offering of New Notes and No Offer to Purchase Existing Notes

This release does not constitute an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption from such registration requirements. The Company has not registered and does not intend to register any part of the proposed offering of New Notes in the United States. This release also does not constitute an offer to purchase, a solicitation of an offer to purchase, or a solicitation of tenders or consents with respect to, any Existing Notes.

About STATS ChipPAC Ltd.

STATS ChipPAC Ltd. is a leading service provider of semiconductor packaging design, assembly, test and distribution solutions in diverse end market applications including communications, digital consumer and computing. With global headquarters in Singapore, STATS ChipPAC has design, research and development, manufacturing or customer support offices in 10 different countries. STATS ChipPAC is listed on the SGX-ST. Further information is available at www.statschippac.com. Information contained in this website does not constitute a part of this release.

Investor Relations Contact:

Tham Kah Locke
Vice President of Corporate Finance
Tel: (65) 6824 7788, Fax: (65) 6720 7826
email: kahlocke.tham@statschippac.com

Media Contact:

Lisa Lavin
Deputy Director of Corporate Communications
Tel: (208) 867 9859
email: lisa.lavin@statschippac.com

STATS ChipPAC Ltd.
Company Registration No.: 199407932D
Headquarters: 10 Ang Mo Kio Street 65, #05-17/20 Techpoint,
Singapore 569059
www.statschippac.com

STATS ChipPAC Ltd.
Condensed Consolidated Statements of Operations
(In thousands of U.S. Dollars, except share and per share data)
(Unaudited)

	Three Months Ended						Six Months Ended
	June 28,			June 27,			June 28,			June 27,
	2009			2010			2009			2010
Net revenues	$	320,690		$	435,320		$	541,183		$	823,267
Cost of revenues		(272,289	)		(341,726	)		(494,952	)		(651,996	)
Gross profit		48,401			93,594			46,231			171,271
Operating expenses:
Selling, general and administrative		23,506			25,390			44,113			47,973
Research and development		9,771			12,254			17,396			23,792
Restructuring charges		—			—			12,933			—
Total operating expenses		33,277			37,644			74,442			71,765
Operating income (loss)		15,124			55,950			(28,211	)		99,506
Other income (expenses), net		(12,532	)		(7,672	)		(21,165	)		(15,536	)
Income (loss) before income taxes		2,592			48,278			(49,376	)		83,970
Income tax expense		(362	)		(8,882	)		(782	)		(15,865	)
Net income (loss)		2,230			39,396			(50,158	)		68,105
Less: Net (income) loss attributable to the noncontrolling interest		(7	)		(2,064	)		1,314			(3,323	)
Net income (loss) attributable to STATS ChipPAC Ltd.	$	2,223		$	37,332		$	(48,844	)	$	64,782
Net income (loss) per ordinary share attributable to STATS ChipPAC Ltd.:
Basic	$	0.00		$	0.02		$	(0.02	)	$	0.03
Diluted	$	0.00		$	0.02		$	(0.02	)	$	0.03
Ordinary shares (in thousands) used in per ordinary share calculation:
Basic		2,202,218			2,202,218			2,202,218			2,202,218
Diluted		2,202,223			2,202,240			2,202,218			2,202,239
Key Ratios and Information:
Gross Margin		15.1	%		21.5	%		8.5	%		20.8	%
Operating Expenses as a % of Revenue		10.4	%		8.6	%		13.7	%		8.7	%
Operating Margin		4.7	%		12.9	%		(5.2	)%		12.1	%
Depreciation & Amortization, including Amortization of Debt Issuance Costs	$	67,324		$	69,365		$	133,979		$	137,180
Capital Expenditures	$	32,350		$	67,650		$	41,843		$	167,037

STATS ChipPAC Ltd.
Company Registration No.: 199407932D
Headquarters: 10 Ang Mo Kio Street 65, #05-17/20 Techpoint,
Singapore 569059
www.statschippac.com

STATS ChipPAC Ltd.
Condensed Consolidated Balance Sheets
(In thousands of U.S. Dollars)

	December 27,		June 27,
	2009		2010
			(Unaudited)
ASSETS
Current assets:
Cash, cash equivalents and marketable securities	$	351,195	$	364,216
Accounts receivable, net		208,766		255,420
Inventories		61,859		65,836
Other current assets *		52,215		49,012
Total current assets		674,035		734,484
Marketable securities		16,929		16,849
Property, plant and equipment, net		1,115,497		1,150,227
Investment in equity investee		7,743		8,013
Goodwill and intangible assets		591,125		590,856
Other non-current assets *		21,611		25,319
Total assets	$	2,426,940	$	2,525,748
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts and other payables	$	182,704	$	213,083
Other current liabilities		103,394		104,836
Short-term debts		224,786		77,155
Total current liabilities		510,884		395,074
Long-term debts		233,181		374,254
Other non-current liabilities		59,329		65,847
Total liabilities		803,394		835,175
STATS ChipPAC Ltd. shareholders’ equity		1,564,669		1,629,702
Noncontrolling interest		58,877		60,871
Total liabilities and equity	$	2,426,940	$	2,525,748

* Includes $0.4 million of non-current restricted cash as of December 27, 2009, and $0.03 million of current restricted cash and $0.4 million of non-current restricted cash as of June 27, 2010.

STATS ChipPAC Ltd.
Company Registration No.: 199407932D
Headquarters: 10 Ang Mo Kio Street 65, #05-17/20 Techpoint,
Singapore 569059
www.statschippac.com

STATS ChipPAC Ltd.
Other Supplemental Information
(Unaudited)

	2Q 2009			1Q 2010			2Q 2010
Net Revenues by Product Line
Packaging — laminate		58.5	%		55.5	%		55.6	%
Packaging — leaded		14.7	%		15.3	%		15.3	%
Test		23.0	%		22.2	%		20.5	%
Wafer level processing and other services		3.8	%		7.0	%		8.6	%
		100.0	%		100.0	%		100.0	%
Net Revenues by End User Market
Communications		53.3	%		52.3	%		51.5	%
Personal Computers		17.5	%		15.4	%		16.1	%
Consumer, Multi-applications and Others		29.2	%		32.3	%		32.4	%
		100.0	%		100.0	%		100.0	%
Net Revenues by Region
United States of America		76.2	%		61.5	%		56.7	%
Europe		3.9	%		12.8	%		14.4	%
Asia		19.9	%		25.7	%		28.9	%
		100.0	%		100.0	%		100.0	%
Number of Testers		962			929			940
Number of Wirebonders		4,596			4,538			4,456
Overall Equipment Utilization Rate		51	%		63	%		67	%

STATS ChipPAC Ltd.
Company Registration No.: 199407932D
Headquarters: 10 Ang Mo Kio Street 65, #05-17/20 Techpoint,
Singapore 569059
www.statschippac.com

EX-99.2

Exhibit 99.2

STATS ChipPAC Ltd.
Reg No.: 199407932D

FINANCIAL STATEMENTS AND RELATED ANNOUNCEMENT

Financial Statements for the Three and Six Months Ended June 27, 2010.
These figures have not been audited.

STATS ChipPAC Ltd. (the “Company” or “STATS ChipPAC”) and its subsidiaries (collectively, the “Group”) provide a full range of semiconductor test and packaging services. The Group has operations in Singapore, South Korea, China, Malaysia, Thailand, Taiwan, the United Kingdom, the Netherlands, Japan and in the United States, its principal market.

The Group’s financial statements have been prepared in accordance with the accounting principles generally accepted in the United States of America (“US GAAP”), but condense or omit certain information and note disclosures normally included in annual financial statements. In the opinion of management of STATS ChipPAC, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting solely of normal recurring adjustments) necessary to present fairly the financial information included therein. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto for the year ended December 27, 2009 included in STATS ChipPAC’s 2009 Annual Report on Form 20-F. The accompanying condensed consolidated financial statements include the accounts of STATS ChipPAC and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.

The results of operations for interim periods are not necessarily indicative of the results of operations that may be expected for any other period. Our 52-53 week fiscal year ends on the Sunday nearest and prior to December 31. Our fiscal quarters end on a Sunday and are generally thirteen weeks in length. Our second quarter of 2010 ended on June 27, 2010, while our second quarter of 2009 and fiscal year 2009 ended on June 28, 2009 and December 27, 2009, respectively.

All amounts are expressed in United States dollars unless otherwise indicated.

Certain of the statements in this report are forward-looking statements that are based on management’s current views and assumptions and involve a number of risks and uncertainties which could cause actual results to differ materially. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “plan,” “intend,” “target,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue” or the negative of these terms or other comparable terminology. Factors that could cause actual results to differ include, but are not limited to, general business and economic conditions and the state of the semiconductor industry; prevailing market conditions; demand for end-use applications products such as communications equipment, consumer and multi-applications and personal computers; decisions by customers to discontinue outsourcing of test and packaging services; level of competition; our reliance on a small group of principal customers; our continued success in technological innovations; possible future application of push-down accounting; pricing pressures, including declines in average selling prices; intellectual property rights disputes and litigation; our ability to control operating expenses; our substantial level of indebtedness and access to credit markets; potential impairment charges; availability of financing; changes in our product mix; our capacity utilization; delays in acquiring or installing new equipment; limitations imposed by our financing arrangements which may limit our ability to maintain and grow our business; returns from research and development investments; changes in customer order patterns; shortages in supply of key components; customer credit risks; disruption of our operations; loss of key management or other personnel; defects or malfunctions in our testing equipment or packages; rescheduling or cancelling of customer orders; adverse tax and other financial consequences if the taxing authorities do not agree with our interpretation of the applicable tax laws; classification of our Company as a passive foreign investment company; our ability to develop and protect our intellectual property; changes in environmental laws and regulations; exchange rate fluctuations; regulatory approvals for further investments in our subsidiaries; majority ownership by Temasek Holdings (Private) Limited (“Temasek”) that may result in conflicting interests with Temasek and our affiliates; unsuccessful acquisitions and investments in other companies and businesses; labor union problems in South Korea; uncertainties of conducting business in China and changes in laws, currency policy and political instability in other countries in Asia; natural calamities and disasters, including outbreaks of epidemics and communicable diseases, the continued trading and listing of our ordinary shares on the Singapore Exchange Securities Trading Limited (“SGX-ST”); and other risks described from time to time in the Company’s filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F dated March 5, 2010. You should not unduly rely on such statements. We do not intend, and do not assume any obligation, to update any forward-looking statements to reflect subsequent events or circumstances.

1

PART I — INFORMATION REQUIRED FOR QUARTERLY (Q1, Q2, Q3), HALF-YEAR AND FULL YEAR ANNOUNCEMENTS

1(a) An income statement (for the Group) together with a comparative statement for the corresponding period of the immediately preceding financial year.

	Three Months Ended						Six Months Ended
	June 28,			June 27,			June 28,			June 27,
	2009			2010			2009			2010
	US$'000			US$'000			US$'000			US$'000
Net revenues		320,690			435,320			541,183			823,267
Cost of revenues		(272,289	)		(341,726	)		(494,952	)		(651,996	)
Gross profit		48,401			93,594			46,231			171,271
Operating expenses:
Selling, general and administrative		23,506			25,390			44,113			47,973
Research and development		9,771			12,254			17,396			23,792
Restructuring charges		—			—			12,933			—
Total operating expenses		33,277			37,644			74,442			71,765
Operating income (loss)		15,124			55,950			(28,211	)		99,506
Other income (expense), net:
Interest income		473			486			1,123			900
Interest expense		(7,811	)		(7,451	)		(15,732	)		(14,918	)
Foreign currency exchange loss		(4,997	)		(1,116	)		(2,978	)		(2,044	)
Equity income (loss) from investment in equity investee		(278	)		369			(1,258	)		375
Other non-operating income (expense), net		81			40			(2,320	)		151
Total other expense, net		(12,532	)		(7,672	)		(21,165	)		(15,536	)
Income (loss) before income taxes		2,592			48,278			(49,376	)		83,970
Income tax expense		(362	)		(8,882	)		(782	)		(15,865	)
Net income (loss)		2,230			39,396			(50,158	)		68,105
Less: Net (income) loss attributable to the noncontrolling interest		(7	)		(2,064	)		1,314			(3,323	)
Net income (loss) attributable to STATS ChipPAC Ltd.		2,223			37,332			(48,844	)		64,782

Income (loss) before income taxes of the Group is arrived at after charging / (crediting):

	Three Months Ended						Six Months Ended
	June 28,			June 27,			June 28,			June 27,
	2009			2010			2009			2010
	US$'000			US$'000			US$'000			US$'000
Depreciation and amortization		67,324			69,365			133,979			137,180
Allowance for doubtful debts		281			605			928			1,127
Bad debts written off		16			—			16			—
Write-off for stock obsolescence		1,124			147			3,039			183
Adjustment for overprovision of tax in respect of prior years		(1,321	)		(495	)		(1,321	)		(495	)
Additions for (write-back of) liability on unrecognized tax benefits for uncertain tax positions in respect of prior years		253			—			343			(32	)
Loss (gain) on sale of property, plant and equipment		620			(126	)		154			(390	)

2

1(b)(i) A balance sheet (for the Issuer and Group), together with a comparative statement as at the end of the immediately preceding financial year.

	Notes			Group						Company
				December 27,			June 27,			December 27,			June 27,
				2009			2010			2009			2010
				US$'000			US$'000			US$'000			US$'000
ASSETS
Current assets:
Cash and cash equivalents		(A	)		288,683			287,021			177,877			179,416
Short-term marketable securities					62,512			77,195			—			—
Accounts receivable, net					208,766			255,420			86,987			110,385
Short-term amounts due from affiliates					20,895			17,623			905			10
Short-term amounts due from subsidiaries					—			—			484,018			532,205
Other receivables					11,555			8,879			5,875			4,886
Inventories		(B	)		61,859			65,836			13,802			15,639
Short-term restricted cash		(F	)		25			25			—			—
Prepaid expenses and other current assets		(C	)		19,740			22,485			2,267			3,599
Total current assets					674,035			734,484			771,731			846,140
Long-term marketable securities					16,929			16,849			16,426			16,849
Property, plant and equipment, net		(D	)		1,115,497			1,150,227			260,973			301,018
Investment in equity investee					7,743			8,013			7,743			8,013
Investment in subsidiaries					—			—			1,005,273			1,034,849
Intangible assets		(E	)		39,993			39,724			14,002			16,347
Goodwill					551,132			551,132			—			—
Long-term restricted cash		(F	)		384			389			—			—
Prepaid expenses and other non-current assets		(C	)		21,227			24,930			2,484			13,668
Total assets					2,426,940			2,525,748			2,078,632			2,236,884
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts and other payables					133,532			141,172			16,032			19,386
Payables related to property, plant and equipment purchases					49,172			71,911			22,710			38,558
Accrued operating expenses					100,997			100,674			45,033			38,325
Income taxes payable					2,380			4,143			—			—
Short-term borrowings		(G	)		56,000			56,000			50,000			50,000
Short-term amounts due to affiliates					17			19			17			19
Short-term amounts due to subsidiaries					—			—			15,990			94,153
Current installments of long-term debts		(H	)		168,786			21,155			150,000			—
Total current liabilities					510,884			395,074			299,782			240,441
Long-term debts, excluding current installments		(H	)		233,181			374,254			213,000			363,000
Other non-current liabilities					59,329			65,847			1,181			3,741
Total liabilities					803,394			835,175			513,963			607,182
STATS ChipPAC Ltd. Shareholders’ Equity
Share capital:
Ordinary shares — Unlimited ordinary shares with no par value; Issued ordinary shares — 2,202,218,293 in 2009 and 2010					2,035,573			2,035,783			2,035,573			2,035,783
Accumulated other comprehensive loss					(6,687	)		(6,646	)		(6,687	)		(6,646	)
Accumulated deficit					(464,217	)		(399,435	)		(464,217	)		(399,435	)
Total shareholders’ equity attributable to STATS ChipPAC Ltd.					1,564,669			1,629,702			1,564,669			1,629,702
Noncontrolling interest					58,877			60,871			—			—
Total equity					1,623,546			1,690,573			1,564,669			1,629,702
Total liabilities and equity					2,426,940			2,525,748			2,078,632			2,236,884

3

1(b)(i) A balance sheet (for the Issuer and Group), together with a comparative statement as at the end of the immediately preceding financial year (cont’d).

Notes:

(A)	Cash and cash equivalents
	Cash and cash equivalents consist of the following:

	Group				Company
	December 27,		June 27,		December 27,		June 27,
	2009		2010		2009		2010
	US$’000		US$’000		US$’000		US$’000
Cash at banks and on hand		124,734		174,786		47,956		84,337
Cash equivalents
Bank fixed deposits		100,361		77,329		92,361		64,367
Money market funds		63,588		34,906		37,560		30,712
		288,683		287,021		177,877		179,416

(B) Inventories

Inventories consist of the following:

	Group				Company
	December 27,		June 27,		December 27,		June 27,
	2009		2010		2009		2010
	US$’000		US$’000		US$’000		US$’000
Raw materials		49,165		49,510		8,171		9,391
Work-in-progress		11,379		15,200		5,076		5,636
Finished goods		1,315		1,126		555		612
		61,859		65,836		13,802		15,639

(C) Prepaid expenses and other assets

Prepaid expenses and other current assets consist of the following:

	Group				Company
	December 27,		June 27,		December 27,		June 27,
	2009		2010		2009		2010
	US$’000		US$’000		US$’000		US$’000
Debt issuance cost, net of accumulated amortization		464		63		464		63
Other prepayments and assets		14,195		17,341		1,803		3,536
Deferred income tax assets		5,081		5,081		—		—
		19,740		22,485		2,267		3,599

Prepaid expenses and other non-current assets consist of the following:

	Group				Company
	December 27,		June 27,		December 27,		June 27,
	2009		2010		2009		2010
	US$’000		US$’000		US$’000		US$’000
Deferred income tax assets		15,841		9,365		—		—
Other deposits		276		290		—		—
Debt issuance cost, net of accumulated amortization		2,006		13,030		2,006		13,030
Others		3,104		2,245		478		638
		21,227		24,930		2,484		13,668

4

(D) Property, plant and equipment

Property, plant and equipment consist of the following:

	Group						Company
	December 27,			June 27,			December 27,			June 27,
	2009			2010			2009			2010
	US$’000			US$’000			US$’000			US$’000
Cost:
Freehold land		10,833			10,893			—			—
Leasehold land and land use rights		19,864			19,864			—			—
Buildings, mechanical and electrical installation		278,492			291,458			66,651			73,516
Equipment		2,255,290			2,404,770			807,689			886,155
Total cost		2,564,479			2,726,985			874,340			959,671
Total accumulated depreciation		(1,448,982	)		(1,576,758	)		(613,367	)		(658,653	)
Property, plant and equipment, net		1,115,497			1,150,227			260,973			301,018

(E) Intangible assets

Intangible assets consist of the following:

	Group						Company
	December 27,			June 27,			December 27,			June 27,
	2009			2010			2009			2010
	US$’000			US$’000			US$’000			US$’000
Cost:
Tradenames		7,700			7,700			—			—
Technology and intellectual property		32,000			32,000			—			—
Customer relationships		99,300			99,300			—			—
Patent costs, software, licenses and others		47,905			51,651			16,401			19,229
Total cost		186,905			190,651			16,401			19,229
Total accumulated amortization		(146,912	)		(150,927	)		(2,399	)		(2,882	)
Intangible assets, net		39,993			39,724			14,002			16,347

(F) Restricted cash

Restricted cash consists of time deposits and government bonds held in connection with foreign regulatory requirements and as collateral for bank facilities. At December 27, 2009 and June 27, 2010, US$0.4 million and US$0.4 million were held as restricted cash, respectively.

(G) Short-term borrowings

The Company had a line of credit from Bank of America with a credit limit of US$50.0 million, of which US$50.0 million was outstanding as of June 27, 2010 over two loan tranches of US$25.0 million each. The principal of and interest on the two loan tranches of US$25.0 million each were payable at maturity in June 2010 and July 2010, respectively. Both loan tranches bore interest at the rate of 1.68% per annum. The Company rolled forward the loan tranche that was due to mature in June 2010 for an aggregate of 9 days and both tranches were repaid in July 2010. The Company funded the repayment with cash on hand.

In June 2009, STATS ChipPAC Shanghai Co., Ltd. obtained a short term loan facility from Bank of Communications Co., Ltd. with a credit limit of US$15.0 million. US$6.0 million was drawn down under this credit facility over two loan tranches of US$3.0 million each. Interest on the two loan tranches of US$3.0 million each was payable on a quarterly basis. In June 2010, STATS ChipPAC Shanghai Co., Ltd. renewed the facility with a credit limit of US$6.0 million. The two loan tranches of US$3.0 million each that were due to mature in June 2010 were rolled forward to a maturity date in June 2011. As of June 27, 2010, US$6.0 million was outstanding under this credit facility. Interest on the loan is payable on a quarterly basis. The loan bears interest at a floating rate which, as of June 27, 2010, was 4.2% per annum.

(H) Long-term debts

— US$215.0 million 6.75% Senior Notes due 2011

On November 18, 2004, the Company issued US$215.0 million of senior unsecured notes due November 15, 2011, for net proceeds of US$210.5 million. The senior notes bears interest of 6.75% per annum payable semi-annually on May 15 and November 15 of each year.

In March 2009, the Company repurchased US$2.0 million aggregate principal amount of its US$215.0 million 6.75% Senior Notes due 2011 for US$1.7 million (excluding interest). The Company funded the repurchase of these senior notes with its existing cash on hand. As a result, the Company recognized a gain on repurchase of senior notes of US$0.3 million in the three months ended March 29, 2009. The Company has deposited the repurchased US$2.0 million principal amount of senior notes with a banking institution to hold in custody and accordingly, these senior notes have thereupon ceased to be outstanding or to accrue interest in the Company’s financial statements.

5

— US$150.0 million 7.5% Senior Notes due 2010

On July 19, 2005, the Company issued US$150.0 million of senior unsecured notes due July 19, 2010 for net proceeds of US$146.5 million. The senior notes bore interest rate of 7.5% per annum payable semi-annually on January 19 and July 19 of each year. As of June 27, 2010, the senior notes due July 19, 2010 were classified as long-term debts on the basis that the Company has the intention and ability to consummate the refinancing of the senior notes as of June 27, 2010.

The Company redeemed the US$150.0 million senior notes at maturity on July 19, 2010. The Company financed the redemption with a drawdown of US$150.0 million from a new senior credit facility obtained in May 2010 (as described below).

— US$360.0 million senior credit facility

On May 18, 2010, the Company obtained a senior credit facility of US$360.0 million with a syndicated group of lenders. The credit facility is guaranteed by all of the Company’s material wholly-owned subsidiaries other than the China subsidiaries and will mature in May 2013. During the tenor of the credit facility, the Company will be required to repay 5% of the principal amount of the credit facility on each of the first two semiannual payment dates, 10% of the principal amount of the credit facility on the third semiannual payment date, 15% of the credit facility on each of the fourth and fifth semiannual payment dates, and the remaining 50% of the principal amount of the credit facility on the sixth (and final) semiannual payment date. The interest rate payable under the credit facility will be determined by reference to LIBOR plus an applicable margin based on our then-applicable leverage ratio. The agreement governing the credit facility contains provisions relating to optional prepayment, mandatory prepayment, representations, affirmative and negative covenants and events of default. The loan drawdown must be made within 6 months from the date of the facility agreement but no later than November 15, 2010. The Company incurred deferred debt issuance cost of approximately $11.8 million in syndication, legal and other costs during the three months ended June 27, 2010. As of June 27, 2010, the Company had not utilized the term loan facility. On July 19, 2010, the Company made a drawdown of US$150.0 million from the credit facility to finance the redemption upon maturity of the 7.5% Senior Notes due 2010.

— Other long-term debts

In October 2007, STATS ChipPAC (Thailand) Limited issued a US$50.0 million promissory note carrying interest, payable annually, of 6% per annum to LSI Corporation (“LSI”) in connection with the acquisition of an assembly and test operations in Thailand. The amount payable to LSI under the promissory note, after contractual netting off of certain receivables from LSI of US$3.2 million, amounted to US$46.8 million. The promissory note is payable in annual installments of US$20.0 million, US$10.0 million, US$10.0 million and US$6.8 million over four years commencing October 2, 2008. The first and second annual installment of US$20.0 million and US$10.0 million were paid to LSI in 2008 and 2009, respectively. As of June 27, 2010, the amount payable to LSI under the promissory note was US$16.8 million.

STATS ChipPAC Taiwan Semiconductor Corporation has a NT$3.6 billion floating rate New Taiwan dollar term loan facility (approximately US$113.1 million based on exchange rate as of March 28, 2010) with a syndicate of lenders, with Taishin Bank as the sponsor bank. The loan drawdowns must be made within 24 months from the date of first drawdown, which took place in February 2007. Upon expiry of the 24 months period in February 2009, this facility ceased to be available for further drawdown. STATS ChipPAC Taiwan Semiconductor Corporation has drawn down NT$0.7 billion (approximately US$22.0 million based on exchange rate as of March 28, 2010) under the term loan facility. The principal of and interest on the loan is payable in nine quarterly installments commencing February 2009 (being 24 months from first draw down date) with the first eight quarterly installments each repaying 11% of the principal and the last quarterly installment repaying 12% of the principal. In May 2009, STATS ChipPAC Taiwan Semiconductor Corporation refinanced the outstanding NT$0.6 billion (approximately US$18.7 million based on exchange rate as of June 27, 2010) loan with new credit facilities of NT$873.0 million (approximately US$27.2 million as of June 27, 2010) obtained from various bank and financial institutions. In the three months ended March 28, 2010, STATS ChipPAC Taiwan Semiconductor Corporation early repaid NT$200.0 million (approximately US$6.2 million) of loan outstanding under these credit facilities. As of June 27, 2010, NT$423.0 million (approximately US$13.2 million) of loan under these credit facilities was outstanding. These credit facilities have varying interest rates ranging from 1.7% to 1.8% per annum and maturities ranging from May 2011 to May 2012.

Additionally, STATS ChipPAC Taiwan Semiconductor Corporation has a NT$0.3 billion (approximately US$9.4 million as of June 27, 2010) credit facility with Mega Bank of which NT$76.6 million (approximately US$2.4 million) borrowing was outstanding as of June 27, 2010. This credit facility bears interest at the rate of 1.7% per annum and expires in August 2012. This loan is secured by a pledge of land and building with a combined net book value of US$6.3 million as of June 27, 2010.

1(b)(ii) In relation to the aggregate amount of the Group’s borrowings and debt securities, specify the following at the end of the current financial period reported on with comparative figures as at the end of the immediately preceding financial year.

	December 27, 2009				June 27, 2010
	Secured		Unsecured		Secured		Unsecured
	US$’000		US$’000		US$’000		US$’000
(a) Repayable within 1 year		1,054		223,732		1,064		76,091
(b) Repayable after 1 year		1,844		231,337		1,330		372,924
		2,898		455,069		2,394		449,015

6

	As of June 27, 2010, the Group’s total debt outstanding consisted of US$451.4 million of borrowings, which included US$150.0 million of the Company’s 7.5% Senior Notes due 2010, US$213.0 million of the Company’s 6.75% Senior Notes due 2011 and other long-term and short-term borrowings. The Company redeemed the US$150.0 million of 7.5% Senior Notes due 2010 at maturity on July 19, 2010.
(c)	Details of the collaterals:
	Long-term debts of US$2.4 million and US$2.9 million were secured by certain of the Group’s property, plant and equipment with net book value of US$6.3 million and US$6.4 million as at June 27, 2010 and December 27, 2009, respectively.
	The Company’s 7.5% Senior Notes due 2010 and 6.75% Senior Notes due 2011 are fully and unconditionally guaranteed, jointly and severally, on a senior basis, by certain subsidiaries of the Company. The Company redeemed the US$150.0 million of 7.5% Senior Notes due 2010 at maturity on July 19, 2010.

7

1(c) A cash flow statement (for the Group), together with a comparative statement for the corresponding period of the immediately preceding financial year.

	Three Months Ended						Six Months Ended
	June 28,			June 27,			June 28,			June 27,
	2009			2010			2009			2010
	US$’000			US$’000			US$’000			US$’000
Cash Flows From Operating Activities
Net income (loss) attributable to STATS ChipPAC Ltd.		2,223			37,332			(48,844	)		64,782
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		66,880			68,887			133,134			136,273
Debt issuance cost amortization		444			478			845			907
Loss (gain) on sale of property, plant and equipment		620			(126	)		154			(390	)
Gain from repurchase of senior notes		—			—			(276	)		—
Foreign currency exchange (gain) loss		426			271			(49	)		1,651
Share-based compensation expense		122			4			270			127
Deferred income taxes		1,013			5,711			1,086			9,656
Net income (loss) attributable to the noncontrolling interest		7			2,064			(1,314	)		3,323
Equity (income) loss from investment in equity investee		278			(369	)		1,258			(375	)
Others		8			(226	)		(421	)		510
Changes in operating working capital:
Accounts receivable		(39,537	)		(17,054	)		(34,290	)		(46,654	)
Amounts due from affiliates		(398	)		(10	)		3,359			3,272
Inventories		(7,932	)		(2,974	)		(924	)		(3,977	)
Other receivables, prepaid expense and other assets		(5,151	)		(13,248	)		(187	)		(11,158	)
Accounts payable, accrued operating expenses and other payables		20,010			17,470			(27,122	)		8,881
Amounts due to affiliates		(60	)		18			(1,318	)		2
Net cash provided by (used in) operating activities		38,953			98,228			25,361			166,830
Cash Flows From Investing Activities
Proceeds from sales of marketable securities		13,095			—			15,663			—
Proceeds from maturity of marketable securities		6,037			—			18,729			3,130
Purchases of marketable securities		(6,761	)		(8,608	)		(29,326	)		(16,746	)
Acquisition of intangible assets		(1,212	)		(1,270	)		(2,783	)		(3,740	)
Purchases of property, plant and equipment		(21,205	)		(78,058	)		(45,458	)		(144,299	)
Proceeds from sale of assets held for sale		5			—			479			—
Others, net		182			106			318			109
Net cash used in investing activities		(9,859	)		(87,830	)		(42,378	)		(161,546	)
Cash Flows From Financing Activities
Repayment of short-term debts		—			(6,000	)		(5,035	)		(6,000	)
Repayment of long-term debts and promissory notes		(19,062	)		(268	)		(23,086	)		(6,794	)
Redemption of senior notes		—			—			(2,000	)		—
Proceeds from bank borrowings		18,805			6,000			23,840			6,000
Decrease in restricted cash		(11	)		318			(19	)		(5	)
Distribution to noncontrolling interest in subsidiary		—			—			—			—
Net cash used in financing activities		(268	)		50			(6,300	)		(6,799	)
Net decrease in cash and cash equivalents		28,826			10,448			(23,317	)		(1,515	)
Effect of exchange rate changes on cash and cash equivalents		317			2			168			(147	)
Cash and cash equivalents at beginning of the period		243,624			276,571			295,916			288,683
Cash and cash equivalents at end of the period		272,767			287,021			272,767			287,021

8

1(d)(i) A statement (for the Issuer and Group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalization issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year.

Three Months Ended June 28, 2009

	Attributable to Group
	Attributable to Company
								Accumulated						Total Equity
								Other						Attributable to
	Comprehensive							Comprehensive			Accumulated			STATS			Noncontrolling			Total
	Income			Ordinary Shares				Loss			Deficit			ChipPAC Ltd.			Interest			Equity
				No.
	US$’000			(In thousands)		US$’000		US$’000			US$’000			US$’000			US$’000			US$’000
Balance at March 30, 2009					2,202,218		2,035,464		(9,727	)		(525,337	)		1,500,400			56,080			1,556,480
Share-based compensation					—		1		—			—			1			—			1
Effect of subsidiary’s equity transaction					—		39		—			—			39			—			39
Comprehensive income (loss):
Dividends paid					—		—		—			—			—			(2,248	)		(2,248	)
Net loss		2,230			—		—		—			2,223			2,223			7			2,230
Other comprehensive income (loss)
Unrealized gain on available-for-sale marketable securities		448			—		—		451			—			451			(3	)		448
Unrealized loss on hedging instruments		(287	)		—		—		(287	)		—			(287	)		—			(287	)
Realized loss on hedging instruments		241			—		—		241			—			241			—			241
Foreign currency translation adjustment		3,588			—		—		1,774			—			1,774			1,814			3,588
Other comprehensive income		6,220
Comprehensive income attributable to the noncontrolling interest		(1,818	)
Comprehensive income attributable to STATS ChipPAC Ltd.		4,402
Balance at June 29, 2009					2,202,218		2,035,504		(7,548	)		(523,114	)		1,504,842			55,650			1,560,492

Three Months Ended June 27, 2010

	Attributable to Group
	Attributable to Company
								Accumulated						Total Equity
								Other						Attributable to
	Comprehensive							Comprehensive			Accumulated			STATS			Noncontrolling			Total
	Income			Ordinary Shares				Loss			Deficit			ChipPAC Ltd.			Interest			Equity
				No.
	US$’000			(In thousands)		US$’000		US$’000			US$’000			US$’000			US$’000			US$’000
Balance at March 28, 2010					2,202,218		2,035,780		(3,953	)		(436,767	)		1,595,060			60,958			1,656,018
Share-based compensation					—		1		—			—			1			—			1
Effect of subsidiary’s equity transaction					—		2		—			—			2			—			2
Dividend paid					—		—		—			—			—			(1,704	)		(1,704	)
Net income		39,396			—		—		—			37,332			37,332			2,064			39,396
Other comprehensive income (loss)
Unrealized gain on available-for-sale marketable securities		224			—		—		224			—			224			—			224
Unrealized loss on hedging instruments		(3,018	)		—		—		(3,018	)		—			(3,018	)		—			(3,018	)
Realized loss on hedging instruments		685			—		—		685			—			685			—			685
Foreign currency translation adjustment		(1,031	)		—		—		(584	)		—			(584	)		(447	)		(1,031	)
Other comprehensive income		36,256
Comprehensive income attributable to the noncontrolling interest		(1,617	)
Comprehensive income attributable to STATS ChipPAC Ltd.		34,639
Balance at June 27, 2010					2,202,218		2,035,783		(6,646	)		(399,435	)		1,629,702			60,871			1,690,573

9

Six Months Ended June 28, 2009

	Attributable to Group
	Attributable to Company
								Accumulated						Total Equity
								Other						Attributable to
	Comprehensive							Comprehensive			Accumulated			STATS			Noncontrolling			Total
	Income			Ordinary Shares				Loss			Deficit			ChipPAC Ltd.			Interest			Equity
				No.
	US$’000			(In thousands)		US$’000		US$’000			US$’000			US$’000			US$’000			US$’000
Balance at December 28, 2008					2,202,218		2,035,235		(12,308	)		(474,270	)		1,548,657			59,042			1,607,699
Share-based compensation					—		3		—			—			3			—			3
Effect of subsidiary’s equity transaction					—		266		—			—			266			(201	)		65
Comprehensive income (loss):
Dividends paid					—		—		—			—			—			(2,248	)		(2,248	)
Net loss		(50,158	)		—		—		—			(48,844	)		(48,844	)		(1,314	)		(50,158	)
Other comprehensive income (loss)
Unrealized gain on available-for-sale marketable securities		475			—		—		475			—			475			—			475
Unrealized loss on hedging instruments		(2,457	)		—		—		(2,457	)		—			(2,457	)		—			(2,457	)
Realized loss on hedging instruments		6,524			—		—		6,524			—			6,524			—			6,524
Foreign currency translation adjustment		589			—		—		218			—			218			371			589
Other comprehensive income		(45,027	)
Comprehensive income attributable to the noncontrolling interest		943
Comprehensive income attributable to STATS ChipPAC Ltd.		(44,084	)
Balance at June 29, 2009					2,202,218		2,035,504		(7,548	)		(523,114	)		1,504,842			55,650			1,560,492

Six Months Ended June 27, 2010

	Attributable to Group
	Attributable to Company
								Accumulated						Total Equity
								Other						Attributable to
	Comprehensive							Comprehensive			Accumulated			STATS			Noncontrolling			Total
	Income			Ordinary Shares				Loss			Deficit			ChipPAC Ltd.			Interest			Equity
				No.
	US$’000			(In thousands)		US$’000		US$’000			US$’000			US$’000			US$’000			US$’000
Balance at December 27, 2009					2,202,218		2,035,573		(6,687	)		(464,217	)		1,564,669			58,877			1,623,546
Share-based compensation					—		1		—			—			1			—			1
Effect of subsidiary’s equity transaction					—		209		—			—			209			(203	)		6
Dividend paid					—		—		—			—			—			(1,704	)		(1,704	)
Net income		68,105			—		—		—			64,782			64,782			3,323			68,105
Other comprehensive income (loss)
Unrealized gain on available-for-sale marketable securities		423			—		—		423			—			423			—			423
Unrealized loss on hedging instruments		(1,026	)		—		—		(1,026	)		—			(1,026	)		—			(1,026	)
Realized loss on hedging instruments		137			—		—		137			—			137			—			137
Foreign currency translation adjustment		1,085			—		—		507			—			507			578			1,085
Other comprehensive income		68,724
Comprehensive income attributable to the noncontrolling interest		(3,901	)
Comprehensive income attributable to STATS ChipPAC Ltd.		64,823
Balance at June 27, 2010					2,202,218		2,035,783		(6,646	)		(399,435	)		1,629,702			60,871			1,690,573

Note: Under US GAAP, the Company’s investment in subsidiaries is accounted for using the equity method.

10

1(d)(ii) Details of any changes in the Company’s share capital arising from rights issue, bonus issue, share buy-backs, exercise of share options or warrants, conversion of other issues of equity securities, issue of shares for cash or as consideration for acquisition or for any other purpose since the end of the previous period reported on. State also the number of shares that may be issued on conversion of all the outstanding convertibles, as well as the number of shares held as treasury shares, if any, against the total number of issued shares excluding treasury shares of the issuer, as at the end of the current financial period reported on and as at the end of the corresponding period of the immediately preceding financial year.

	Number of shares
	June 28,		June 27,
	2009		2010
Issued shares outstanding at December 29, 2008 and December 28, 2009		2,202,218,293		2,202,218,293
Issue of shares pursuant to share plans		—		—
Issued shares outstanding at June 28, 2009 and June 27, 2010		2,202,218,293		2,202,218,293
Options outstanding		13,093,169		11,775,077

Convertible Notes

The Group did not have any outstanding convertible notes as at June 28, 2009 and June 27, 2010.

Treasury Shares

The Group did not have any treasury shares as at June 28, 2009 and June 27, 2010.

1(d)(iii) Total number of issued shares excluding treasury shares as at the end of the current financial period and as at the end of the immediately preceding year.

	December 27,		June 27,
	2009		2010
Total number of issued shares excluding treasury shares		2,202,218,293		2,202,218,293

1(d)(iv) A statement showing all sales, transfers, disposal, cancellation and/or use of treasury shares as at the end of the current financial period reported on.

Not applicable.

2 Whether the figures have been audited or reviewed, and in accordance with which auditing standard or practice.

The figures, prepared in accordance with US GAAP, have not been audited by the Group’s auditors. The financial statements as of December 27, 2009 were derived from the Group’s audited consolidated financial statements.

3 Where the figures have been audited or reviewed, the auditors’ report (including any qualifications or emphasis of matter).

Not applicable.

4 Whether the same accounting policies and methods of computation as in the Issuer’s most recently audited annual financial statements have been applied.

The Group has applied the same accounting policies and methods of computation in the financial statements for the current reporting period as those used in the most recently audited annual financial statements.

5 If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change.

With the exception of those discussed below, there have been no recent accounting pronouncements or changes in accounting pronouncements during the six months ended June 27, 2010, as compared to the recent accounting pronouncements described in the Company’s Annual Report on Form 20-F for the fiscal year ended December 27, 2009.

In December 2009, FASB issued Accounting Standards Update 2009-17, Improvements to Financial Reporting by Enterprises with Variable Interest Entities to incorporate the changes made by FASB Statement No. 167 into the FASB Codification. The guidance in this update is effective for periods beginning after November 15, 2009 and is effective for the Company’s first quarter reporting in 2010. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

In December 2009, FASB issued Accounting Standards Update 2010-02, Consolidation (Topic 810) — Accounting and Reporting for Decreases in Ownership of a Subsidiary — A Scope Clarification, which expands the disclosure requirements about deconsolidation of a subsidiary or derecognition of a group of assets. The guidance in this update is effective for periods beginning in the first interim or

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annual reporting period ending on or after December 15, 2009 and is effective for the Company’s first quarter reporting in 2010. The adoption of this standard did not have a material impact on the Company’s consolidated financial position and results of operations.

6 Earnings per ordinary share (“EPS”) of the Group for the current financial period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends:-
(a) based on the weighted average number of ordinary shares on issue; and
(b) on a fully diluted basis (detailing any adjustments made to the earnings).

	Three Months Ended				Six Months Ended
	June 28,		June 27,		June 28,			June 27,
	2009		2010		2009			2010
Net income (loss) per ordinary shares attributable to STATS ChipPAC Ltd.
— Basic	US$	0.00	US$	0.02	US$	(0.02	)	US$	0.03
— Diluted	US$	0.00	US$	0.02	US$	(0.02	)	US$	0.03
Ordinary shares (in thousands) used in per ordinary shares calculation:
— Basic		2,202,218		2,202,218		2,202,218			2,202,218
— Diluted		2,202,223		2,202,240		2,202,218			2,202,239

7 Net asset value (for the Issuer and Group) per ordinary share based on the total number of issued shares excluding treasury shares of the Issuer at the end of the:-
(a) current financial period reported on; and
(b) immediately preceding financial year.

	Group				Company
	December 27,		June 27,		December 27,		June 27,
	2009		2010		2009		2010
Net asset value per ordinary share	US$	0.74	US$	0.77	US$	0.71	US$	0.74

The net asset value per ordinary share of the Group and the Company as at December 27, 2009 and June 27, 2010 is calculated based on the total issued number of ordinary shares of 2,202,218,293.

8 A review of performance of the Group, to the extent necessary for a reasonable understanding of the Group’s business. It must include a discussion of the following:-
(a) any significant factors that affected the turnover, costs and earnings of the Group for the current financial period reported on, including (where applicable) seasonal or cyclical factors; and
(b) any material factors that affected the cash flow, working capital, assets or liabilities of the Group during the current financial period reported on.

Please refer to attached appendix: “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

9 Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results.

No forecast or prospect statement had been issued for the current reporting period.

10 A commentary at the date of the announcement of the significant trends and competitive conditions of the industry in which the Group operates and any known factors or events that may affect the Group in the next reporting period and the next 12 months.

Please refer to attached appendix: “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

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11 If a decision regarding dividend has been made:-

(a) Whether an interim (final) ordinary dividend has been declared (recommended); and

Not applicable.

(b)(i) Amount per share (cents)

Not applicable.

(b)(ii) Previous corresponding period (cents)

Not applicable.

(c) Whether the dividend is before tax, net of tax or tax exempt. If before tax or net of tax, state the tax rate and the country where the dividend is derived. (If the dividend is not taxable in the hands of shareholders, this must be stated).

Not applicable.

(d) The date the dividend is payable.

Not applicable.

(e) Book closure date.

Not applicable.

12 If no dividend has been declared (recommended), a statement to that effect.

No dividend has been declared or recommended for the current reporting period.

PART II — ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT

13 Segmented revenue and results for business or geographical segments (of the Group) in the form presented in the Issuer’s most recently audited annual financial statements, with comparative information for the immediately preceding year.

Not applicable.

14 In the review of performance, the factors leading to any material changes in contributions to turnover and earnings by the business or geographical segments.

Please refer to attached appendix: “Management Discussion and Analysis of Financial Condition and Results of Operations.”

15 A breakdown of the Group’s sales.

Not applicable.

16 A breakdown of the total annual dividend (in dollar value) for the Issuer’s latest full year and its previous full year.

Not applicable.

17 Confirmation pursuant to Rule 705(5) of the Listing Manual

The Directors hereby confirm that, to the best of their knowledge, nothing has come to their attention which may render the unaudited financial statements for the three and six months ended June 27, 2010 to be false or misleading in any material aspect.

ON BEHALF OF THE BOARD OF DIRECTORS

Charles R. Wofford	Tan Lay Koon
Chairman	President and Chief Executive Officer

BY ORDER OF THE BOARD

Elaine Sin
Company Secretary

July 30, 2010

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EX-99.3

Exhibit 99.3

STATS ChipPAC Ltd.
Reg No.: 199407932D

APPENDIX
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion of our business, financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and the related notes included in this report. This discussion contains forward-looking statements that reflect our current views with respect to future events and financial performance. Our actual results may differ from those anticipated in these forward looking statements as a result of certain factors, such as those set forth in our annual report on Form 20-F filed with the U.S. Securities and Exchange Commission on March 5, 2010. Our 52-53 week fiscal year ends on the Sunday nearest and prior to December 31. Our fiscal quarters end on a Sunday and are generally thirteen weeks in length. Our second quarter of 2010 ended on June 27, 2010, while our second quarter of 2009 and fiscal year 2009 ended on June 28, 2009 and December 27, 2009, respectively. References to “US$” are to the lawful currency of the United States of America. The closing rate appearing on Reuters on June 27, 2010 was 1,212.00 South Korean Won per US$1.00 for cable transfers in South Korean Won and 32.05 New Taiwan Dollar per US$1.00 for cable transfers in New Taiwan Dollars (or “NT$”). For your convenience, unless otherwise indicated, certain South Korean Won and New Taiwan Dollar amounts have been translated into U.S. Dollar amounts based on these exchange rates. Unless otherwise specified or the context requires, the terms “STATS ChipPAC,” “Company,” “we,” “our,” and “us” refer to STATS ChipPAC Ltd. and its consolidated subsidiaries.

Business Overview

We are a leading service provider of semiconductor packaging design, bump, probe, assembly, test and distribution solutions. We have the scale to provide a comprehensive range of semiconductor packaging and test solutions to a diversified global customer base servicing the computing, communications and consumer markets. Our services include:

• Packaging services: providing leaded, laminate, memory card and wafer level chip-scale packages (“CSPs”) to customers with a broad range of packaging solutions and full backend turnkey services for a wide variety of electronics applications. We also provide redistribution layers, integrated passive devices and wafer bumping services for flip-chip and wafer level CSPs. As part of customer support on packaging services, we also offer package design; electrical, mechanical and thermal simulation; measurement and design of lead-frames and laminate substrates;

• Test services: including wafer probe and final testing on a diverse selection of test platforms covering the major test platforms in the industry. We have expertise in testing a broad variety of semiconductors, especially mixed-signal, radio frequency, analog and high-performance digital devices. We also offer test-related services such as burn-in process support, reliability testing, thermal and electrical characterization, dry pack, and tape and reel; and

• Pre-production and post-production services: such as package development, test software and related hardware development, warehousing and drop shipment services.

We are among the leaders in providing advanced package technology, such as flip-chip, wafer level, stacked die and System-in-Package. We are also among the leaders in testing mixed-signal semiconductors or semiconductors combining the use of analog and digital circuits in a chip. Mixed-signal semiconductors are used extensively in fast-growing communications and consumer applications. We have strong expertise in testing a wide range of high-performance digital devices.

We have been successful in attracting new customers with our packaging and test capabilities and then expanding our relationship with such customers to provide full turnkey solutions tailored to their individual needs.

We are headquartered in Singapore and our manufacturing facilities are strategically located in South Korea, Singapore, China, Malaysia, Thailand and Taiwan (which includes our 52%-owned subsidiary, STATS ChipPAC Taiwan Semiconductor Corporation). We also have a test pre-production facility in the United States. We market our services through our direct sales force in the United States, South Korea, Japan, China, Singapore, Malaysia, Taiwan, the United Kingdom and the Netherlands. With an established presence in the countries where strategic semiconductor markets are located, we are in close proximity to the major hubs of wafer fabrication which allows us to provide customers with fully-integrated, multi-site, end-to-end packaging and test services.

Temasek Holdings (Private) Limited (“Temasek”), through its wholly-owned subsidiary, Singapore Technologies Semiconductors Pte Ltd (“STSPL”), beneficially owned approximately 83.8% of the Company as of June 27, 2010. Temasek, a private limited company incorporated in Singapore, is wholly-owned by the Minister for Finance (Incorporated) of Singapore, a body constituted by the Minister for Finance (Incorporation) Act (Cap. 183).

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Global Market Conditions

The United States and other countries have experienced difficult economic conditions, including unprecedented financial market disruption. The downturn in the global economy and the semiconductor markets that accelerated during the second half of 2008 and continued well into 2009 have adversely affected, and we expect will continue to affect, demand for our products and services. The semiconductor industry recovered on a faster pace during the second half of 2009, and continues to grow in 2010 driven by new demands from the computing, communication and consumer convergent products, as well as low inventory level in the semiconductor supply chain. However, the uncertainty in global economic conditions remains and there can be no assurance that global economic conditions will improve, which may make it difficult for our customers to accurately forecast and plan for future business activities. A sustained global economic slowdown and downturn in the semiconductor industry would have a material adverse effect on our results of operations, cash flow, financial position and/or prospects.

Furthermore, restrictions on credit globally and foreign currency exchange rate fluctuations in countries in which we have operations may impact economic activity and our results of operations. Credit risk associated with our customers and our investment portfolio may also be adversely impacted. Financial market disruption may also result in increased interest expense or inability to obtain financing for our operations or investments.

Tender offer of Existing Notes, Private Placement of New Notes and Proposed Capital Reduction

The Company has today announced that it has commenced a cash tender offer and consent solicitation in respect of its $213.0 million of 6.75% Senior Notes due 2011 (“Existing Notes”) and is concurrently offering senior notes (“New Notes”) in a private placement in furtherance of its capital reduction plans, details of which are contained in a separate press release.

These materials do not constitute an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption from such registration requirements. The Company has not registered and does not intend to register any part of the proposed offering of New Notes in the United States. These materials also do not constitute an offer to purchase, a solicitation of an offer to purchase, or a solicitation of tenders or consents with respect to, any Existing Notes.

Results of Operations

Three and six months ended June 27, 2010 compared to three and six months ended June 28, 2009

Net Revenues

We derive revenues primarily from packaging and testing of laminate and leaded packages. Net revenues were US$435.3 million and US$823.3 million in the three and six months ended June 27, 2010, respectively, an increase of 35.7% and 52.1% compared to US$320.7 million and US$541.2 million in the three and six months ended June 28, 2009, respectively. The increase in net revenues in the three and six months ended June 27, 2010 compared to the same periods in 2009, respectively was primarily due to continued improvement in the semiconductor industry.

In the three and six months ended June 27, 2010, unit volumes of our total packaging were 45.6% and 68.2% higher compared to the same periods in 2009, respectively. Average selling prices declined by 9.7% and 12.6% in the three and six months ended June 27, 2010 compared to the same periods in 2009, respectively, due to product mix change and price decrease. These resulted in a net increase of our packaging revenues in the three and six months ended June 27, 2010 by 31.5% and 47.2% to US$308.8 million and US$583.5 million, respectively, compared to the same periods in 2009. Revenue from test services in the three and six months ended June 27, 2010 increased 20.8% and 36.7% to US$89.0 million and US$175.0 million, respectively, compared to the same periods in 2009. Revenue from wafer level processing and other services in the three and six months ended June 27, 2010 increased 207.4% and 283.3% to US$37.5 million and US$64.8 million, respectively, compared to the same periods in 2009. Previously, we have reported revenue from wafer level processing and other services together with revenue from test services as revenue from test and other services. Commencing with the three and six months ended June 30, 2010, we are reporting revenue from wafer level processing and other services separately from revenue from test services as a result of an increase in revenue from wafer level processing. We have similarly disclosed revenue from revenue from wafer level processing and other services separately from revenue from test services for the three and six months ended June 30, 2009 for comparative purposes.

In the three and six months ended June 27, 2010, revenue contribution from the communications market decreased 1.8% and 0.2% over the same periods in 2009 to US$224.1 million and US$427.0 million, respectively, and represented 51.5% and 51.9% of our revenues in the three and six months ended June 27, 2010, respectively. Revenue contribution from consumer, multi-applications and other markets in the three and six months ended June 27, 2010 increased 3.2% and decreased 0.2% compared to the same periods in 2009 to US$141.0 million and US$266.3 million, respectively, and represented 32.4% and 32.3% of our revenues in the three and six months ended June 27, 2010, respectively. Revenue contribution from the personal computer market in the three and six months ended June 27, 2010 decreased 1.4% and increased 0.4% to US$70.2 million and US$130.0 million over the same periods in 2009, respectively, and represented 16.1% and 15.8% of our revenues in the three and six months ended June 27, 2010, respectively. We expect to continue to depend on the communications, consumer and multi-applications, and personal computer markets for substantially all of our net revenues.

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Gross Profit

Gross profit in the three and six months ended June 27, 2010 was US$93.6 million and US$171.3 million, compared to US$48.4 million and US$46.2 million in the three and six months ended June 28, 2009, respectively. Gross profit as a percentage of revenues was 21.5% and 20.8% in the three and six months ended June 27, 2010, compared to 15.1% and 8.5% in the three and six months ended June 28, 2009, respectively. In the three and six months ended June 27, 2010, gross profit increased primarily due to higher net revenues, richer product mix and higher savings from our cost reduction efforts. Overall equipment utilization was approximately 67% in the three months ended June 27, 2010 compared to 51% in the three months ended June 28, 2009. Our cost of revenues consist principally of fixed costs such as depreciation and leasing expenses and variable costs such as direct and indirect labor, materials and overhead expenses. We continue to experience higher cost as a result of external global economic factors, such as higher substrate and gold prices which affected our cost of materials.

Selling, General and Administrative

Selling, general and administrative expenses were US$25.4 million and US$48.0 million in the three and six months ended June 27, 2010, an increase of 8.1% and 8.8% compared to US$23.5 million and US$44.1 million in the three and six months ended June 28, 2009, respectively. In the three and six months ended June 28, 2009, selling, general and administrative expenses were lower primarily due to mandatory shutdowns and vacations. As a percentage of revenues, selling, general and administrative expenses were 5.8% and 5.8% in the three and six months ended June 27, 2010 compared to 7.3% and 8.2% in the three and six months ended June 28, 2009, respectively.

Research and Development

Research and development expenses were US$12.3 million and US$23.8 million in the three and six months ended June 27, 2010 compared to US$9.8 million and US$17.4 million in the three and six months ended June 28, 2009, respectively. The increase in research and development expenses in the three and six months ended June 27, 2010 was primarily due to an increase in research and development activities in advanced packaging in the three and six months ended June 27, 2010 and lower research and development expenses during the three and six months ended June 28, 2009 resulted from longer mandatory shutdowns and vacations. As a percentage of revenues, research and development expenses were 2.8% and 2.9% in the three and six months ended June 27, 2010, compared to 3.0% and 3.2% in the three and six months ended June 28, 2009, respectively.

Restructuring Charges

No restructuring charges were incurred in the three and six months ended June 27, 2010. In the three months ended March 29, 2009, we recorded severance and related charges of US$12.9 million in connection with our restructuring plan involving the reduction of approximately 600 employees, representing approximately 5% of our global workforce. We implemented the restructuring plan to reduce our operating costs in response to the severe operating environment during that period and to realign our organization’s structure and efficiency.

Net Interest Income (Expense)

Net interest expense was US$7.0 million and US$14.0 million in the three and six months ended June 27, 2010, compared to US$7.3 million and US$14.6 million in the three and six months ended June 28, 2009, respectively. Interest income was US$0.5 million and US$0.9 million in the three and six months ended June 27, 2010, compared to US$0.5 million and US$1.1 million in the three and six months ended June 28, 2009, respectively. The decrease in interest income in the three and six months ended June 27, 2010 was primarily due to lower interest rates in the three and six months ended June 27, 2010 compared to the same periods in 2009, respectively.

Interest expense was US$7.5 million and US$14.9 million in the three and six months ended June 27, 2010, compared to US$7.8 million and US$15.7 million in the three and six months ended June 28, 2009. The decrease in interest expense was primarily due to our repayment of US$10.0 million of our 6.0% promissory notes to LSI Corporation (“LSI”) in October 2009, and the repurchase of US$2.0 million of our 6.75% Senior Notes due 2011 in March 2009. Total outstanding interest-bearing debt was US$451.4 million and US$467.2 million as of June 27, 2010 and June 28, 2009, respectively.

Foreign Currency Exchange Gain (Loss)

Net foreign currency exchange loss was US$1.1 million and US$2.0 million in the three and six months ended June 27, 2010, compared to US$5.0 million and US$3.0 million in the three and six months ended June 28, 2009, respectively. These non-cash losses were due primarily to the fluctuations during the three and six months ended June 27, 2010 compared to the same periods in 2009, respectively, between the exchange rate of the U.S. dollar and the South Korean Won, the Singapore dollar, the Malaysian Ringgit, the Chinese Renminbi and the Thai Baht.

Other Non-Operating Income (Expense), Net

Net other non-operating income was US$0.04 million and US$0.2 million in the three and six months ended June 27, 2010, compared to net other non-operating income (expense) of US$0.1 million and US$(2.3) million in the three and six months ended June 28, 2009, respectively. The non-operating expense in the three and six months ended June 28, 2009 was primarily due to the expenses related to our previously disclosed aborted capital reduction and debt financing in 2008.

Income Tax Expense

Our consolidated income tax expense was US$8.9 million and US$15.9 million in the three and six months ended June 27, 2010, compared to US$0.4 million and US$0.8 million in the three and six months ended June 28, 2009, respectively, based on the mix of tax rates and taxable income across the various jurisdictions in which we do business. Our primary tax jurisdictions are Singapore, South Korea, China, Malaysia, Taiwan, Thailand and the United States.

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The US$8.9 million and US$15.9 million tax expense in the three months and six months ended June 27, 2010 included tax benefit adjustments to the effective tax rate related to US$2.6 million and US$1.8 million of liability for unrecognized tax benefits for uncertain tax positions in the three and six months ended June 27, 2010, respectively, compared to tax expense adjustments of US$0.3 million and US$0.2 million in the three and six months ended June 28, 2009, respectively.

We recognize interest and penalties related to the unrecognized tax benefit in income tax expense. As of June 27, 2010, we do not have any accrued interest and penalties.

Balance Sheet

Total Group assets increased US$98.8 million to US$2,525.7 million mainly due to an increase in accounts receivables by US$46.7 million, property, plant and equipment by US$34.7 million, and cash, cash equivalents and marketable securities by US$12.9 million.

The increase in accounts receivable was due to higher net revenues. The increase in property, plant and equipment is mainly due to expansion in our wafer level packaging and 300mm eWLB manufacturing capacity. The increase in cash and cash equivalents was mainly due higher net revenues offset by cash used in investing and financing activities.

Total Group liabilities increased US$31.8 million to US$835.2 million mainly due to an increase in accounts payables, payables related to property, plant and equipment purchases, and other payables by US$30.4 million in the aggregate and US$6.5 million in other non-current liabilities, partially offset by a decrease in total debts by US$6.6 million. The increase in accounts payables, payables related to property, plant and equipment purchases, and other payables is due to increased purchase of property, plant and equipment.

Total shareholders’ equity attributable to STATS ChipPAC Ltd. increased by US$65.0 million to US$1,629.7 million mainly due to a net income of US$64.8 million recorded in the six months ended June 27, 2010.

Liquidity and Capital Resources

Our principal source of liquidity consists of cash flows from operating activities, bank facilities, debt financing, and our existing cash, cash equivalents and marketable securities. As of June 27, 2010, we had cash, cash equivalents and marketable securities of US$381.1 million. We also have available lines of credit and banking facilities consisting of loans, overdrafts, letters of credit and bank guarantees, including those available to our consolidated subsidiaries, which amounted to an aggregate of US$521.1 million, of which US$89.7 million was utilized as of June 27, 2010. Our liquidity needs arise primarily from servicing our outstanding debts, working capital needs and the funding of capital expenditures and investments. Our capital expenditures are largely driven by the demand for our services, primarily to increase our packaging and testing capacity, to replace packaging and testing equipment from time to time, and to expand our facilities and service offerings. Depending on business conditions, we expect our capital expenditures in 2010 to increase from our previous estimate of US$200 million to approximately US$270 million due to improved business outlook. We spent US$67.7 million and US$167.0 million on capital expenditures in the three and six months ended June 27, 2010, compared to US$32.4 million and US$41.8 million in the same periods in 2009. Our capital expenditure in the three and six months ended June 27, 2010 was higher over the same periods in 2009 as we expanded our wafer level packaging and 300mm embedded Wafer-Level Ball Grid Array (eWLB) manufacturing capacity.

In July 2010, we repaid the US$50.0 million loan with Bank of America. We funded the repayment with cash on hand.

In May 2010, we obtained a term loan facility of US$360.0 million with a syndicate of lenders. The loan drawdown must be made within 6 months from the date of the facility agreement but no later than November 15, 2010. No drawdown has been made for this facility as of June 27, 2010. On July 19, 2010, we drew down US$150.0 million to finance the redemption of the 7.5% Senior Notes due 2010 at maturity on July 19, 2010.

In September 2009, STATS ChipPAC Korea Ltd. obtained a short term loan facility from DBS Bank Ltd with a credit limit of US$25.0 million. No drawdown has been made from this facility as of June 27, 2010.

In June 2009, STATS ChipPAC Shanghai Co., Ltd. obtained a short term loan facility from Bank of Communications Co., Ltd. with a credit limit of US$15.0 million. US$6.0 million was drawn down under this credit facility over two loan tranches of US$3.0 million each. The principal of the two loan tranches of US$3.0 million each that were due to mature in June 2010 were rolled forward to a maturity date in June 2011. As of June 27, 2010, US$6.0 million was outstanding under this credit facility.

In March 2009, we repurchased US$2.0 million aggregate principal amount of our US$215.0 million 6.75% Senior Notes due 2011 for US$1.7 million (excluding interest). We funded the repurchase of these senior notes with our existing cash on hand. We have deposited the repurchased US$2.0 million principal amount of senior notes with a banking institution to hold in custody and accordingly, those senior notes have thereupon ceased to be outstanding or to accrue interest in our financial statements.

In October 2007, we consummated the previously announced definitive agreement with LSI pursuant to which STATS ChipPAC (Thailand) Limited acquired LSI’s assembly and test operations in Thailand for an aggregate purchase price of approximately US$100.0 million. We funded the initial payment of US$50.0 million of the aggregate purchase consideration with our working capital, including our cash and cash

4

equivalents, and issued a promissory note bearing interest of 6.0% per annum for the balance US$46.8 million purchase price, after taking into account a contractual net-off of US$3.2 million of receivables from LSI. The promissory note is payable over four annual installments of US$20.0 million, US$10.0 million, US$10.0 million and US$6.8 million commencing October 2, 2008. The first and second annual installment of US$20.0 million and US$10.0 million were paid to LSI in 2008 and 2009, respectively. As of June 27, 2010, the amount payable to LSI under the promissory note was US$16.8 million.

We believe that our cash on hand, existing credit facilities and anticipated cash flows from operations will be sufficient to meet our currently anticipated capital expenditure requirements, investment requirements, as well as debt service repayment obligations for the next 12 months. We regularly evaluate our current and future financing needs and may take advantage of favorable market conditions to raise additional financing. We may also from time to time seek to refinance our outstanding debt, or retire or purchase our outstanding debt through cash purchases and/or exchanges for securities, in the open market purchases, privately negotiated transactions or otherwise. From time to time, we may make acquisitions of, or investments in, other companies and businesses that we believe could expand our business, augment our market coverage, enhance our technical capabilities or otherwise offer growth opportunities. Such additional financing, refinancing, repurchases, exchanges, acquisitions or investments, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. The amounts involved may be material.

Under the global market conditions as discussed above, there can be no assurance that our business activity would be maintained at the expected level to generate the anticipated cash flows from operations or that our credit facilities would be available or sufficient. If the market conditions deteriorate, there can be no assurance that demand for our services will not be adversely affected, resulting in our cash flows from operations being lower than anticipated. If our cash flows from operations is lower than anticipated, including as a result of a downturn in the market conditions generally or the semiconductor industry or otherwise, or our capital requirements exceed our expectations as a result of higher than anticipated growth in the semiconductor industry, acquisition or investment opportunities, or the expansion of our business or otherwise, we may have to seek additional financing. In such events, there can be no assurance that additional financing will be available or, if available, that such financings can be obtained on terms favorable to us or that any additional financing will not be dilutive to our shareholders or detrimental to our creditors.

Total Borrowings

As of June 27, 2010, our total debt outstanding consisted of US$451.4 million of borrowings, which included US$150.0 million of our 7.5% Senior Notes due 2010, US$213.0 million of our 6.75% Senior Notes due 2011, and other long-term and short-term borrowings.

On July 19, 2010, we redeemed US$150.0 million of our 7.5% Senior Notes due 2010 at maturity. We financed the redemption with a drawdown of US$150.0 million from our US$360.0 million term loan facility.

On May 18, 2010, we obtained a senior credit facility of US$360.0 million with a syndicated group of lenders. The credit facility is guaranteed by all of our material wholly-owned subsidiaries other than our China subsidiaries and will mature in May 2013. During the tenor of the credit facility, we will be required to repay 5% of the principal amount of the credit facility on each of the first two semiannual payment dates, 10% of the principal amount of the credit facility on the third semiannual payment date, 15% of the credit facility on each of the fourth and fifth semiannual payment dates, and the remaining 50% of the principal amount of the credit facility on the sixth (and final) semiannual payment date. The interest rate payable under the credit facility will be determined by reference to LIBOR plus an applicable margin based on our then-applicable leverage ratio. The agreement governing the credit facility contains provisions relating to optional prepayment, mandatory prepayment, representations, affirmative and negative covenants and events of default. The loan drawdown must be made within 6 months from the date of the facility agreement but no later than November 15, 2010. We incurred deferred debt issuance cost of approximately $11.5 million in syndication, legal and other costs during the three months ended June 27, 2010. As of June 27, 2010, we have not utilized the term loan facility. On July 19, 2010, we made a drawdown of US$150.0 million from the credit facility to finance the redemption upon maturity of the 7.5% Senior Notes due 2010.

In September 2009, STATS ChipPAC Korea Ltd. obtained a US$25.0 million short term loan facility with DBS Bank Ltd. No draw down has been made from this facility as of June 27, 2010.

In June 2009, STATS ChipPAC Shanghai Co., Ltd. obtained a short term loan facility from Bank of Communications Co., Ltd. with a credit limit of US$15.0 million. US$6.0 million was drawn down under this credit facility over two loan tranches of US$3.0 million each. Interest on the two loan tranches of US$3.0 million each was payable on a quarterly basis. In June 2010, STATS ChipPAC Shanghai Co., Ltd. renewed the facility with a credit limit of US$6.0 million. The two loan tranches of US$3.0 million each that were due to mature in June 2010 were rolled forward to a maturity date in June 2011. As of June 27, 2010, US$6.0 million was outstanding under this credit facility. Interest on the loan is payable on a quarterly basis. The loan bears interest at a floating rate which, as of June 27, 2010, was 4.2% per annum.

In March 2009, we repurchased US$2.0 million aggregate principal amount of our 6.75% Senior Notes due 2011 for US$1.7 million (excluding interest). We funded the repurchase of these senior notes with our existing cash on hand. As a result, we recognized a gain on repurchase of senior notes of US$0.3 million in the first quarter of 2009.

In October 2007, we issued a promissory note carrying interest, payable annually, of 6.0% per annum to LSI in connection with the acquisition of an assembly and test operations in Thailand. The amount payable to LSI after contractual netting off of certain receivables from LSI of US$3.2 million amounted to US$16.8 million as of December 27, 2009. The promissory note is payable in annual installments of US$20.0 million, US$10.0 million, US$10.0 million and US$6.8 million over four years commencing October 2, 2008. The first and second

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annual installment of US$20.0 million and US$10.0 million, were paid to LSI in 2008 and 2009, respectively. As of June 27, 2010, the amount payable to LSI under the promissory note was US$16.8 million.

STATS ChipPAC Taiwan Semiconductor Corporation has a NT$3.6 billion floating rate New Taiwan dollar term loan facility (approximately US$112.3 million based on exchange rate as of June 27, 2010) with a syndicate of lenders, with Taishin Bank as the sponsor bank. The loan drawdowns must be made within 24 months from the date of first drawdown, which took place in February 2007. Upon expiry of the 24 months period in February 2009, this facility ceased to be available for further drawdown. STATS ChipPAC Taiwan Semiconductor Corporation has drawn down NT$0.7 billion (approximately US$21.8 million based on exchange rate as of June 27, 2010) under the term loan facility. The principal of and interest on the loan is payable in nine quarterly installments commencing February 2009 (being 24 months from first draw down date) with the first eight quarterly installments each repaying 11% of the principal and the last quarterly installment repaying 12% of the principal. In May 2009, STATS ChipPAC Taiwan Semiconductor Corporation refinanced the outstanding NT$0.6 billion (approximately US$18.7 million based on exchange rate as of June 27, 2010) loan with new credit facilities of NT$873.0 million (approximately US$27.2 million as of June 27, 2010) obtained from various bank and financial institutions. In the three months ended March 28, 2010, STATS ChipPAC Taiwan Semiconductor Corporation early repaid NT$200.0 million (approximately US$6.2 million based on exchange rate as of June 27, 2010) of loan outstanding under these credit facilities. As of June 27, 2010, NT$423.0 million (approximately US$13.2 million based on exchange rate as of June 27, 2010) of loan under these credit facilities was outstanding. These credit facilities have floating interest rates which, as of June 27, 2010, ranged from 1.7% to 1.8% per annum and maturities ranging from May 2011 to May 2012.

Additionally, STATS ChipPAC Taiwan Semiconductor Corporation has a NT$0.3 billion (approximately US$9.4 million as of June 27, 2010) credit facility with Mega Bank of which NT$76.6 million (approximately US$2.4 million based on exchange rate as of June 27, 2010) borrowing was outstanding as of June 27, 2010. This credit facility has a floating interest rate which, as of June 27, 2010 was 1.7% per annum and expires in August 2012. This loan is secured by a pledge of land and building with a combined net book value of US$6.3 million as of June 27, 2010.

We had a line of credit from Bank of America with a credit limit of US$50.0 million, of which US$50.0 million was outstanding as of March 28, 2010, over two loan tranches of US$25.0 million each. The principal of and interest on the two loan tranches of US$25.0 million each were payable at maturity in June 2010 and July 2010, respectively. Both loan tranches bore interest at the rate of 1.68% per annum. We rolled forward the loan tranche that was due to mature in June 2010 for an aggregate of 9 days and both tranches were repaid in July 2010. We funded the repayment with cash on hand.

At June 27, 2010, we had other undrawn banking and credit facilities consisting of loans, overdrafts, letters of credit and bank guarantees of US$34.5 million with financial institutions.

Off-Balance Sheet Arrangements

We have no significant investment in any unconsolidated entities. Our off-balance sheet commitments are limited to operating leases, royalty/license agreements and purchase obligations. Our total off-balance sheet obligations were approximately US$221.3 million as of June 27, 2010.

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Contractual Obligations

     Our total commitments on our loans, operating leases, other obligations and agreements as of June 27, 2010 were as follows:

	Payments Due
	Within						More Than
	1 Year		1-3 Years		3-5 Years		5 Years		Total
	US$’000		US$’000		US$’000		US$’000		US$’000
On balance sheet commitments:
7.5% Senior Notes due 2010 (1)(2)		150,000		—		—		—		150,000
6.75% Senior Notes due 2011 (2)		—		213,000		—		—		213,000
6% promissory note (2)		10,000		6,800		—		—		16,800
Long-term loans (2)		11,155		4,454		—		—		15,609
Short-term loans (2)		56,000		—		—		—		56,000
Retirement benefits		552		733		962		7,823		10,070
Other non-current liabilities (3)		—		—		—		—		—
Total on balance sheet commitments		227,707		224,987		962		7,823		461,479
Off balance sheet commitments:
Operating leases		14,869		18,700		14,797		15,337		63,703
Royalty/ licensing agreements		10,679		20,764		20,221		136		51,800
Purchase obligations:
- Capital commitments		80,750		—		—		—		80,750
- Inventory purchase commitments		25,092		—		—		—		25,092
Total off balance sheet commitments		131,390		39,464		35,018		15,473		221,345
Total commitments		359,097		264,451		35,980		23,296		682,824

Notes:
(1)	On May 18, 2010, we obtained a US$360.0 million term loan facility with a syndicated group of lenders. We drew down US$150.0 million on July 19, 2010 from the credit facility to finance the redemption upon maturity of the 7.5% Senior Notes due 2010 on July 19, 2010. As of June 27, 2010, the 7.5% Senior Notes due 2010 expected to be refinanced were classified as non-current liabilities.
(2)	Our senior notes, promissory note payable, short-term and long-term loans agreements contain provisions for the payment of interest either on a monthly, quarterly, semi-annual or annual basis at a stated rate of interest over the term of the debt. These payment obligations are not reflected in the table above. The interest payments due within one year and 1-3 years amount to US$21.3 million and US$7.5 million, respectively.
(3)	Our other non-current liabilities as of June 27, 2010 were US$65.8 million, including US$10.1 million related to non-current retirement benefits for our employees in Malaysia and Thailand. Also included in the other non-current liabilities is US$2.7 million related to severance benefits for our employees in South Korea which were not included in the table due to lack of contractual certainty as to the timing of payments.

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Contingencies

     We are subject to claims and litigations, which arise in the normal course of business. These claims may include allegations of infringement of intellectual property rights of others as well as other claims of liability. We accrue liability associated with these claims and litigations when they are probable and reasonably estimable.

     In February 2006, our Company, STATS ChipPAC Inc., (“ChipPAC”) and STATS ChipPAC (BVI) Limited were named as defendants in a patent infringement lawsuit filed in United States Federal Court for the Northern District of California (the “California Litigation”). The plaintiff, Tessera, Inc. (“Tessera”), has asserted that semiconductor chip packaging, specifically devices having Ball Grid Array (“BGA”) and multi-chip BGA configurations used by the defendants infringe certain patents of Tessera. Tessera has further asserted that our Company is in breach of an existing license agreement entered into by Tessera with ChipPAC, Inc., which agreement has been assigned by ChipPAC, Inc. to our Company.

     In May 2007, at Tessera’s request, the United States International Trade Commission (the “ITC”) instituted an investigation (the “First ITC Investigation”) of certain of our Company’s co-defendants in the California Litigation and other companies, including certain of our Company’s customers. In addition, in April 2007, Tessera instituted an action in the Federal District Court for the Eastern District of Texas (the “Texas Action”) against certain of our Company’s co-defendants in the California Litigation and other companies. In the First ITC Investigation, the ITC issued a limited exclusion order in May 2009 preventing the named companies from importing certain packaged semiconductor chips and products containing them into the United States. The respondents in the First ITC Investigation appealed to the U.S. Court of Appeals and the appeal is pending. The Texas Action seeks damages and injunctive relief against the named defendants. Both the First ITC Investigation and the Texas Action allege infringement of two of the same patents asserted by Tessera in the California Litigation, and may involve some of the same products packaged by our Company that are included in the California Litigation.

     In May 2008, the ITC instituted an investigation (the “Second ITC Investigation”) of our Company and other semiconductor package assembly service providers that are included in the California Litigation. In the Second ITC Investigation, Tessera sought an order to prevent our Company and other named companies (collectively, the “Respondents”) from providing packaging or assembly services for certain packaged semiconductor chips incorporating small format non-tape BGA semiconductor packages and products containing them, for importation into the United States. In addition, Tessera sought a general exclusion order excluding from importation all small format non-tape BGA semiconductor packages (and downstream products containing such packages), regardless of whether such packages are assembled by the Respondents. The Second ITC Investigation alleged infringement of three of the same patents asserted by Tessera in the California Litigation. Our Company responded to the complaint in June 2008. In February 2009, the Second ITC Investigation was stayed pending the outcome of the First ITC Investigation. In March 2009, Tessera moved to terminate the Second ITC Investigation. In August 2009, the ITC issued a final determination terminating the Second ITC Investigation.

     The district court in the California Litigation has vacated the trial schedule and stayed all proceedings pending a final resolution of the First ITC Investigation. The U.S. Patent and Trademark Office (“PTO”) has also instituted reexamination proceedings on all of the patents Tessera has asserted in the California Litigation and the Second ITC Investigation. It is not possible to predict the outcome of the California Litigation, the total costs of resolving the California Litigation, or when the stay in the California Litigation will be lifted; nor is it possible to predict the outcome of the First ITC Investigation or the Texas Action. It is also not possible to predict the outcome of the PTO proceedings or their impact on the California Litigation or the First ITC Investigation.

     We believe that we have a meritorious defense to these claims and intend to defend the lawsuit(s) vigorously. A court or ITC determination that our products or processes infringe the intellectual property rights of others could result in significant liability and/or require us to make material changes to our products and/or processes. Due to the inherent uncertainties of the lawsuit(s) and investigation(s), we cannot accurately predict the ultimate outcome and it could result in significant liability and/or injunction and could have a material adverse effect on the business, financial condition and the results of operations of our Company.

     Our Company also, from time to time, receives from customers request for indemnification against pending or threatened infringement claims brought against such customers, such as the Tessera cases described above. The resolution of any future allegation or request for indemnification could have a material adverse effect on the Company’s business, financial condition and results of operations.

     In addition, we are subject to various taxes in the different jurisdictions in which we operate. These include taxes on income, property, goods and services, and other taxes. We submit tax returns and claims with the appropriate government taxing authorities, which are subject to examination and agreement by those taxing authorities. We will regularly assess the likelihood of adverse outcomes resulting from these examinations to determine adequacy of provision for taxes.

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Cash Flows From Operating Activities

     In the three and six months ended June 27, 2010, cash provided by operations was US$98.2 million and US$166.8 million compared to cash used in operations of US$39.0 million and US$25.4 million in the three and six months ended June 28, 2009, respectively. Cash provided by operations is calculated by adjusting our net (loss) income by non-cash related items such as depreciation and amortization, amortization of debt issuance cost, loss or gain from sale of assets, gain from repurchase of senior notes, deferred income taxes, foreign currency exchange loss or gain, share-based compensation expense, net income (loss) attributable to noncontrolling interest, share of equity income and by changes in assets and liabilities. In the three and six months ended June 27, 2010, non-cash related items included US$69.4 million and US$137.2 million, respectively, related to depreciation and amortization (including amortization of capitalized debt issuance costs), US$0.1 million and US$0.4 million, respectively, gain from the sale of equipment, US$0.3 million and US$1.7 million, respectively, from foreign currency exchange losses, US$5.7 million and US$9.7 million, respectively, from deferred taxes, US$2.1 million and US$3.3 million, respectively, from net income attributable to the noncontrolling interest of one of our subsidiaries and US$0.4 million and US$0.4 million equity income, respectively, from equity investment.

     In the three and six months ended June 28, 2009, non-cash related items included US$67.3 million and US$134.0 million, respectively, related to depreciation and amortization (including amortization of capitalized debt issuance costs), US$0.6 million and US$0.2 million losses, respectively, from the sale of equipment, nil and US$0.3 million gains, respectively, from repurchase of senior notes, US$0.4 million and US$(0.05) million, respectively, from foreign currency exchange loss (gain), US$0.1 million and US$0.3 million, respectively, related to share-based compensation expense, US$1.0 million and US$1.1 million, respectively, from deferred taxes, US$0.01 million net gain and US$1.3 million from net loss, respectively, attributable to the noncontrolling interest of one of our subsidiaries and US$0.3 million and US$1.3 million equity loss, respectively, from equity investment.

     Working capital uses of cash for the three months ended June 27, 2010 included increases in accounts receivables, amount due from affiliates, inventories and other receivables, prepaid expenses and other assets. Working capital source of cash for the three months ended June 27, 2010 included increases in accounts payable, accrued operating expenses and other payables and amount due to affiliates. Working capital uses of cash for the six months ended June 27, 2010 included increases in accounts receivables, inventories and other receivables, prepaid expenses and other assets. Working capital source of cash for the six months ended June 27, 2010 included increases in accounts payable, accrued operating expenses and other payables and amount due to affiliates, and decreases in amount due from affiliates. Accounts receivables were higher compared to December 27, 2009 due to higher net revenues. Additionally, accounts payables, accrued operating expenses and other payables increased as compared to December 27, 2009 primarily due to timing of quarterly purchases.

Cash Flows From Investing Activities

     In the three and six months ended June 27, 2010, cash used in investing activities was US$87.8 million and US$161.5 million compared to US$9.9 million and US$42.4 million in the three and six months ended June 28, 2009, respectively. The primary usage of cash in investing activities was related to the acquisition of property and equipment, net of changes in payables related to property, plant and equipment purchases, of US$78.1 million and US$144.3 million, respectively, in the three and six months ended June 27, 2010 compared to US$21.2 million and US$45.5 million, respectively, during the same period in 2009. In the three and six months ended June 27, 2010, we received nil, compared to US$0.01 million and US$0.5 million, respectively, in the same period in 2009, of proceeds from sale of assets held for sale. In the three and six months ended June 27, 2010, we invested US$1.3 million and US$3.7 million, respectively, compared to US$1.2 million and US$2.8 million, respectively, in the same period in 2009, in the acquisition of software, licenses and other intangible assets. In the three and six months ended June 27, 2010, we purchased marketable securities of US$8.6 million and US$16.7 million, respectively, compared to US$6.8 million and US$29.3 million, respectively, in the same period in 2009. In the three and six months ended June 27, 2010, we received proceeds from the sale and maturity of our marketable securities of nil and US$3.1 million, respectively, compared to US$19.1 million and US$34.4 million in the same period in 2009, respectively.

Cash Flows From Financing Activities

     In the three and six months ended June 27, 2010, cash used in financing activities was US$0.5 million and US$(6.8) million, respectively, compared to US$0.3 million and US$6.3 million in the three and six months ended June 28, 2009, respectively. In the three and six months ended June 27, 2010, US$6.0 million of borrowings were incurred, and US$6.3 million and US$12.8 million of our borrowings were repaid, respectively. In the three and six months ended June 28, 2009, US$18.8 million and US$23.8 million of borrowings, respectively, were incurred and US$19.1 million and US$28.1 million of our borrowings were repaid, respectively. In the three months ended March 29, 2009, we repurchased US$2.0 million aggregate principal amount of our US$215.0 million 6.75% Senior Notes due 2011 (excluding interest) at an aggregate consideration of US$1.7 million.

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