Availability of optimized 0.13-micron CMOS optical networking silicon further underscores the continued success of AMCC's advanced technology strategy

SAN DIEGO and SUNNYVALE, Calif., May 21, 2002 - With several Applied Micro Circuits Corp. (AMCC) [NASDAQ:AMCC] 0.13-micron CMOS devices already sampling, the highly coordinated effort between the company and UMC (NYSE: UMC), a world-leading semiconductor foundry, continues to deliver well-timed, "no compromise" solutions for the emerging intelligent optical network. Among the high-performance, low-power silicon being manufactured in volume quantities using UMC's leading-edge 0.13-micron process technology with 8 copper metal layers and true low-k (k=2.7) dielectrics are the nPX8005, a switch fabric announced last quarter that is optimized for Metro Access and Metro Core switching applications, and the S3485, the industry's lowest power OC-48 transceiver.

"UMC has delivered on the promise of 0.13-micron CMOS process technology - to provide low power, high integration with a focus on total cost optimization at very high performance levels," said Brent Little, senior vice president of marketing for AMCC. "By harnessing the most advanced semiconductor technologies available, such as the full-featured mixed-signal capabilities, copper, and low-K dielectric of UMC's 0.13-micron process, AMCC will continue to maximize semiconductor value for our customers in the high-bandwidth communications space with world-class silicon solutions. The availability of several CMOS silicon solutions further demonstrates UMC's leadership in the 0.13-micron CMOS process technology movement, and its commitment to AMCC as a highly strategic customer."

Fu Tai Liou, chief officer of worldwide sales and marketing for UMC said, "AMCC is a leader in the high-bandwidth optical networking sector, and we are delighted to be able to provide our foundry services to help the company achieve the outstanding chip performance exhibited by devices such as its nPX8005 crossbar switch fabric. We currently offer the foundry industry's only 8-layer copper and true low-k dielectric 0.13-micron process, and AMCC has successfully leveraged this technology with its design expertise to create the industry's most advanced optical networking ICs."

AMCC designs, develops, manufactures, and markets high-performance, high-bandwidth silicon solutions empowering intelligent optical networks. AMCC utilizes a combination of digital, mixed-signal and high-frequency analog design expertise coupled with system-level knowledge and multiple silicon process technologies to offer integrated circuit products that enable the transport of voice and data over fiber optic networks. The company's system solution portfolio includes switch fabric, traffic management, network processor, framer/mapper, PHY and PMD devices that address the high-performance needs of the evolving intelligent optical network. AMCC's corporate headquarters and wafer fabrication facilities are located in San Diego, California. Sales and engineering offices are located throughout the world. For further information regarding AMCC, please visit our Web site at http://www.amcc.com.

The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements, including statements relating to AMCC's products or UMC's process technologies, the relationship with UMC, and anticipated sales resulting from the relationship, are subject to a number of risks and uncertainties, including the risk that the relationship would not result in expected sales, that the products or process technologies would not be successfully or timely developed or achieve market acceptance, as well as the risks relating to general economic conditions as well as the risks and uncertainties set forth in the Company's Annual Report on Form 10-K, and in other filings of the Company with the Securities and Exchange Commission. As a result of these risks and uncertainties, actual results may differ materially from these forward-looking statements. The forward-looking statements contained in this news release are made as of the date hereof and AMCC does not assume any obligation to update any forward-looking statement.

Some of the statements in the foregoing announcement are forward looking within the meaning of the U.S. Federal Securities laws, including statements about future outsourcing, wafer capacity, technologies, business relationships and market conditions. Investors are cautioned that actual events and results could differ materially from these statements as a result of a variety of factors, including conditions in the overall semiconductor market and economy; acceptance and demand for products from UMC; and technological and development risks.

AMCC is a registered trademark of Applied Micro Circuits Corporation. All other trademarks and registered trademarks are the property of their respective owners.