Winbond Electronics to Acquire the Advanced PC
Business Division from National Semiconductor

Taipei, Taiwan, March 16, 2005 - Winbond Electronics Corporation today announces that it has signed a definitive agreement as a NTD 2 billion acquisition agreement for the Advanced PC Business from National Semiconductor. National's Advanced PC business has been the main supplier of Notebook and Motherboard related ICs, including I/O controller, embedded controller and Trusted Platform Module (TPM) controller. The major customers include international well known corporations and local notebook makers. Revenue of the year 2004 of National's Advanced PC business was about 10% of Winbond's annual revenue.

This transaction provides strategic value for both companies. National Semiconductor will continue focusing in expanding its core analog IC portfolio in the future. Winbond has been a leading supplier of the Input / Output controller in motherboard application. This acquisition will provide faster growth momentum for her Logic IC Business Group. Still more, the addition of 150 employees worldwide as well as the TPM technology will enhance the Company's competences in the PC & Peripheral markets. In the future, Winbond will be able to provide more advanced technology and cost effective products for the Notebook and PC customers.

In recent years, information security has become an important issue for both enterprise and personal information system. Advanced PC Business Division has launched several Information System Protection ICs to support the industry standard V TPM by Trust Computing Organization. Advanced PC Business is the pioneer that provides the products with TPM function among the peers. The technology also has potential to apply in Winbond's products for Network Access and Mobile Phones application.

About Winbond

Winbond Electronics Corporation America, based in San Jose, California, is a wholly-owned subsidiary of Winbond Electronics Corporation, the largest branded IC Company in Taiwan and a leading supplier of semiconductor solutions worldwide. Winbond America designs, develops, markets and sells IC solutions to the global electronics marketplace. With a strong emphasis on mixed-signal solutions, Winbond America's primary mission is to serve the signal conditioning needs of computer, consumer and communications electronic manufacturers. Winbond Electronics Corporation has approximately 3,800 employees worldwide with design centers in Hsinchu, Taiwan; Shanghai, China; San Jose and Torrance, California; and Austin, Texas. The Company can be contacted via the web at http://winbond-usa.com for Winbond America, or through the corporate homepage at http://www.winbond.com..

###

Note: Winbond is registered trademark of Winbond Electronics Corporation. All other trademarks and copyrights mentioned herein are the property of their respective owners.