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                                                                    EXHIBIT 10.1



                ST GROUP MANAGEMENT & SUPPORT SERVICES AGREEMENT


THIS AGREEMENT is made the 27th day of December 1999


BETWEEN:

(1)  SINGAPORE TECHNOLOGIES PTE LTD, a company incorporated in Singapore and
     having its registered office at 51 Cuppage Road, #09-01 StarHub Centre,
     Singapore 229 469 ("STPL"); and

(2)  ST ASSEMBLY TEST SERVICES LTD, a company incorporated in Singapore and
     having its registered office at 5 Yishun Street 23 Singapore 768442 ("the
     Company").


WHEREAS:

(A)  STPL is a majority shareholder of the Company, and the corporate
     headquarters for the Singapore Technologies group of companies and provides
     administrative and support services to its related companies within and
     outside Singapore.

(B)  STPL has invaluable experience in the fields of finance, treasury,
     investment risk review, governmental relations, business development,
     management information systems, human resources management and
     development, legal and corporate secretarial matters and internal audit.
     STPL is also able to offer the Company the benefits of a global network.
     Further, the "Singapore Technologies" name, affiliation to STPL and STPL's
     wide spectrum of industries provide the Company with operational and
     financial leverages (such as improved credit rating, easier access to
     funding and lower cost of borrowing) in its dealings with external parties
     ("STPL Franchise").

(C)  STPL and the Company acknowledge that the centralisation of support staff
     in STPL enables them to share the cost of business services, enhance
     communication and eliminate duplication of efforts.

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NOW IT IS HEREBY AGREED as follows:


1.   CORPORATE SERVICES & SUPPORT

1.1  STPL shall maintain throughout the duration of this Agreement a staff of
     personnel with acknowledged proficiency in their respective fields who
     shall render the Services, as defined in Clause 1.2 below and according to
     the headcounts allocated, to the Company. STPL shall also continue to work
     on strengthening and improving its global network and reputation for the
     benefit of the ST group of companies.

1.2  "Services" shall refer to services in the areas specified in the Appendix
     attached.

1.3  In addition to the Services mentioned in Clause 1.1 above, the Company may
     request STPL to render additional specific services relating to specific
     projects, or require personnel from STPL to be seconded or assigned to the
     Company or its subsidiaries for an agreed period of time. In such events,
     the said additional services shall be invoiced on a case by case basis at
     terms and conditions to be mutually agreed between the parties.


2.   CONSIDERATION

2.1  In consideration of the Services provided by STPL hereunder, the Company
     agrees to pay ST such amount (the "Consideration") to be determined at the
     beginning of each year in accordance with the Appendix. The method and
     basis of determination of the Consideration shall be reviewed by the
     parties every 3 years. STPL and the Company may upon mutual agreement,
     delete any of the Services specified in the Appendix or add new Services
     to the Appendix, in which event that Consideration shall be adjusted
     accordingly by mutual agreement. Any variation shall be subject to the
     written agreement of both parties.

2.2  The Company shall pay to STPL the Consideration in four equal advance
     instalments upon presentation by STPL of its invoices at the beginning of
     each financial quarter.

2.3  All payments by the Company to STPL shall be made in full in Singapore
     Dollars within thirty (30) days of the date of invoice, without set-off or
     deduction of taxes, duties, assessments or other charges of any kind or
     description. The Company shall bear all goods and services tax payable on
     the supply of the Services.


3.   TERM AND TERMINATION

3.1  This Agreement shall take effect from the date hereof and shall remain
     valid until terminated pursuant to Clauses 3.2 and 3.3 below.

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3.2  If the Company fails to effect payment of the Consideration in
     accordance with Clause 2, and such default shall not be remedied
     within fourteen (14) days after written notice of such default is
     given by STPL to the Company, then at any time after the expiration
     of such period of fourteen (14) days, STPL may give written notice to
     the Company of its desire to terminate this Agreement, whereupon this
     Agreement shall terminate on the date specified in such notice.

3.3  The parties agree that this Agreement shall terminate forthwith in
     the event the Company ceases to be a subsidiary of STPL.

3.4  The termination of this Agreement howsoever caused shall be without
     prejudice to any obligations, rights or remedy which have accrued prior to
     such termination and shall not affect any provision of this Agreement
     which is expressly or by implication provided to come into effect on or
     continue in effect after such termination.


4.   CONFIDENTIALITY

     Except as authorised in writing by the respective party, each party shall
     keep secret and shall not at any time, whether during or after this
     Agreement, use for its own or any other person's advantage or reveal to
     any person any of the trade secrets, secret or confidential operations,
     processes or dealings, or any secret or confidential information
     concerning the organisation, business or undertaking of the other party or
     any of its subsidiaries or associated companies.


5.   SEVERABILITY

     If any provision of this Agreement at any time shall be deemed invalid,
     illegal or unenforceable in any respect under Singapore law, such
     invalidity, illegality or unenforceability shall not in any way affect or
     impair any other provision of this Agreement and this Agreement shall be
     construed as if such invalid or illegal or unenforceable provision had
     been severed from the Agreement.


6.   GENERAL

6.1  This Agreement contains the entire agreement between the parties in
     respect to the subject matter hereof and supersedes and cancels any and
     all previous negotiations, offers, agreements (whether written or oral) in
     respect thereto.

6.2  This Agreement or any rights and liabilities hereunder may not be assigned
     or transferred by either party hereto without the prior written consent of
     the other party hereto.

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6.3  No failure or delay on the part of either party hereto in exercising any
     power or right hereunder shall operate as a waiver thereof nor shall any
     single or partial exercise of such right or power preclude any other or
     further exercise of any right or power hereunder.


7.   GOVERNING LAW

7.1  This Agreement shall be governed by and construed in all respects in
     accordance with the laws of Singapore.

7.2  Any dispute arising out of or in connection with this Agreement,
     including any question regarding its existence, validity or termination,
     shall be referred to and finally resolved by arbitration in Singapore in
     accordance with the Arbitration Rules of the Singapore International
     Arbitration Centre ("SIAC Rules") for the time being in force, which Rules
     are deemed to be incorporated by reference into this Clause.

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     IN WITNESS WHEREOF the parties have caused their duly authorised
representatives to set their hands.


Signed by                          }
for and on behalf of               }
SINGAPORE TECHNOLOGIES PTE LTD     }
in the presence of:-               }  /s/ GAN CHEE YEN
                                   }  ---------------------------------------
                                   }  Name: Gan Chee Yen
                                   }  Designation: Group Financial Controller
                                   }



/s/ ISOO TAN
----------------------
Name:






Signed by                          }
for and on behalf of               }
ST ASSEMBLY TEST SERVICES LTD      }
in the presence of:-               }  /s/ WONG KOK KIT
                                   }  --------------------------------------
                                   }  Name: Wong Kok Kit
                                   }  Designation: Chief Financial Officer
                                   }



/s/ BERNARD LIEW
---------------------
Name: Bernard Liew

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                                    APPENDIX

                          COMPUTATION OF CONSIDERATION

The Consideration payable to STPL shall be calculated on the following basis:

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------
     DESCRIPTION OF SERVICES                     FEE BASIS              AMOUNT (S$'000)
----------------------------------------------------------------------------------------
<S>  <C>                                         <C>                    <C>

1    Corporate Secretarial Work

     Comprising corporate secretarial            Co Secretary + 1             150
     support for STATS.                          equivalent headcount
                                                 cost

----------------------------------------------------------------------------------------

2    Executive Resource Support

     Comprising support provided to STATS        1 equivalent                 150
     Executive Resource and Compensation         headcount cost
     Committee ("ERCC") in the design and
     implementation (including
     benchmarking) of compensation
     structure for executives; and together
     with STATS, support to STATS ERCC
     in the implementation of decisions and
     support for administration of
     compensation of executives under
     STATS ERCC

----------------------------------------------------------------------------------------

3    Internal Audit

     Comprising continuing audit plans,          1 1/2 equivalent             150
     monitoring statutory compliance and         headcount cost
     compliance with relevant procedures
     and policies.

----------------------------------------------------------------------------------------

4    Finance

     Comprising treasury related activities,     1 equivalent                 200
     risk management, and accounting             headcount cost
     systems, policies, guidelines and
     procedures

----------------------------------------------------------------------------------------
</TABLE>

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<TABLE>
<S>  <C>                                         <C>                          <C>
----------------------------------------------------------------------------------------

5    Information Technology                      Based on
                                                 reimbursement of its          200
                                                 share of group wide
                                                 licences and IT
                                                 infrastructure (eg
                                                 Lotus Notes,
                                                 Hyperion).

----------------------------------------------------------------------------------------

6    STPL Franchise

     Comprising benefits derived from the        Based on 0.25% of            3,650
     STPL global network and affiliation to      Group Sales or
     STPL, and                                   S$5mil, whichever is
                                                 lower.

     Financial leverage such as bank             Based on 0.5% of ST
     guarantee support, provision of standby     Financial Support or
     credit facilities, improved credit rating,  S$5mil, whichever is
     easier access to funding and lower cost     lower.
     of borrowing.

                                                 GRAND TOTAL                  4,500

----------------------------------------------------------------------------------------
</TABLE>

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Where:

STATS means the Company.

Group Sales means the Company and its subsidiaries' worldwide actual sales. As
the Consideration is payable in advance, the Consideration for this Service
shall be determined based on the Company and its subsidiaries' worldwide
planned sales at the beginning of the year, and at the end of the year, the
final Consideration payable for such Service shall be determined based on the
actual sales. STPL shall refund to the Company any excess payment and the
Company shall make payment to STPL of any shortfall in payment within fourteen
(14) days after the determination of the final Consideration payable for such
Service.

ST Financial Support means the projected annual average outstanding amount of
(a) standby credit facilities provided by STPL to the Company and (b) guarantee
facilities provided by the STPL to third parties to secure loans granted by
such third parties to the Company.

For the avoidance of doubt, the headcount cost allocated in the Appendix above
shall be applicable for the first year from the date hereof and shall be
adjusted every year thereafter based on mutual agreement.

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