SST AND TSMC EXTEND REACH OF SUPERFLASH EMBEDDED TECHNOLOGY THROUGH EXPANDED LICENSING AGREEMENT

SUNNYVALE, Calif., December 12, 2005 — SST (Silicon Storage Technology, Inc., NASDAQ: SSTI), a leader in flash memory technology, and TSMC (Taiwan Semiconductor Manufacturing Company) expanded their agreement to provide TSMC customers with advanced deep sub-micron embedded flash technology. The agreement covers TSMC’s 130-nanometer embedded flash memory processes based on SST’s proven SuperFlash technology.

Since signing its first technology licensing agreement with SST in 1997, nearly 100 TSMC customers have used SST’s flash technology in their manufacturing.

SST attributes the success of SuperFlash to its reliability, low power and compatibility with CMOS logic process. In addition, SST has been able to form strong relationships with semiconductor manufacturers and global foundry partners, enabling SuperFlash technology to be widely accessible to the industry.

“Over the past eight years TSMC customers have benefited greatly from the highly reliable, seamless integration, logic compatible, scalable and best in class SST SuperFlash embedded technology” said Rick Tsai, President and CEO of TSMC. “This latest agreement assures our customers that they will be able to stay on the leading edge of embedded memory technology.”

“TSMC has proven to be a strong partner in establishing SuperFlash as the technology-of-choice for embedded applications,” said Bing Yeh, president and CEO of SST. “TSMC is the foundry industry’s embedded flash leader and we consider our continuing partnership a significant endorsement of SST’s SuperFlash technology in 130-nanometer.”

About TSMC

TSMC is the world's largest dedicated semiconductor foundry, providing the industry's leading process technology and the foundry industry's largest portfolio of process-proven library, IP, design tools and reference flows. The company operates two advanced twelve-inch wafer fabs, five eight-inch fabs and one six-inch wafer fab. TSMC also has substantial capacity commitments at its wholly owned subsidiary, WaferTech and TSMC (Shanghai), and its joint venture fab, SSMC. TSMC's corporate headquarters are in Hsinchu, Taiwan. For more information about TSMC please see http://www.tsmc.com.

About Silicon Storage Technology, Inc.

Headquartered in Sunnyvale, California, SST designs, manufactures and markets a diversified range of memory and non-memory products for high volume applications in the digital consumer, networking, wireless communications and Internet computing markets. Leveraging its proprietary, patented SuperFlash technology, SST is a leading provider of nonvolatile memory solutions with product families that include various densities of high functionality flash memory components and flash mass storage products. The Company also offers its SuperFlash technology for embedded applications through its broad network of world-class manufacturing partners and technology licensees, including TSMC, which offers it under its trademark Emb-FLASH. SST’s non-memory products include NAND controllers, smart card ICs, flash microcontrollers and radio frequency ICs and modules. Further information on SST can be found on the company's Web site at http://www.sst.com.

Forward-Looking Statements

Except for the historical information contained herein, this news release contains forward-looking statements regarding flash memory and non-memory market conditions, SST’s future financial performance, the performance of new products and SST’s ability to bring new products to market that involve risks and uncertainties. These risks may include timely development, acceptance and pricing of new products, the terms and conditions associated with licensees’ royalty payments, the impact of competitive products and pricing, and general economic conditions as they affect SST’s customers, as well as other risks detailed from time to time in the SST’s SEC reports, including the Annual Report on Form 10-K for the year ended December 31, 2004 and on Form 10-Q for the quarters ended March 31, June 30, and September 30, 2005.

For more information about SST and the company’s comprehensive list of product offerings, please call 1-888/SST-CHIP. Information can also be requested via email to literature@sst.com or through SST’s Web site at http://www.sst.com. SST’s head office is located at 1171 Sonora Court, Sunnyvale, Calif.; telephone: 408/735-9110; fax: 408/735-9036.

The SST logo and SuperFlash are registered trademarks of Silicon Storage Technology, Inc. Emb-FLASH is a trademark of TSMC. All other trademarks or registered trademarks are the property of their respective holders.