<PAGE>
(DEUTSCHE BANK AKTIENGESELLSCHAFT LOGO)



                                                                    Exhibit 4.14



Date:                     January 8, 2004

To:                       ST Assembly Test Services Ltd

From:                     Deutsche Bank AG, London Branch

Our reference:            830928L

Re:                       Asset Swap and Bond Sale Transaction



Ladies and Gentlemen:

The purpose of this letter agreement is to set forth the terms and conditions of
the "Bond Transaction" and "Asset Swap Transaction" entered into between
Deutsche Bank AG, ("PARTY A") acting through it's London Branch and and ST
Assembly Test Services Ltd.("PARTY B") on the Trade Date specified below
(together the "TRANSACTION"). This constitutes a "CONFIRMATION" as referred to
in the Agreement specified below.

The definitions and provisions contained in the 2000 ISDA Definitions (the
"DEFINITIONS") as published by the International Swaps and Derivatives
Association, Inc. are incorporated by reference herein. In the event of any
inconsistency between the Definitions and this Confirmation, this Confirmation
will govern.

For the purposes of this Confirmation, all references in the Definitions and the
Agreement (as defined below) to a "SWAP TRANSACTION" shall be deemed to apply to
the Transaction referred to herein.

1.   This Confirmation evidences a complete binding agreement between you and us
     as to the terms of the Transaction. In addition, you and we agree to use
     all reasonable efforts promptly to negotiate, execute and deliver an
     agreement (the "Agreement") in the form of the ISDA Master Agreement
     (Multicurrency-Cross Border) (the "ISDA Form"), with such modifications as
     you and we will in good faith agree. Upon the execution by you and us of
     such an agreement, this Confirmation will supplement, form a part of, and
     be subject to that agreement. All provisions contained or incorporated by
     reference in that agreement upon its execution will govern this
     Confirmation except as expressly modified below, save that the
     "Modifications to the ISDA Form" provisions detailed below and the terms
     set out below in (i) to (iii) of this paragraph shall, upon the execution
     and delivery of that agreement, be superseded by the provisions of the
     agreement.

<PAGE>
     Until we execute and deliver that agreement, this Confirmation, together
     with all other documents referring to the ISDA Form (each a "Confirmation")
     confirming transactions (each a "Transaction") entered into between us
     (notwithstanding anything to the contrary in a Confirmation) shall
     supplement, form a part of, and be subject to an agreement in the form of
     the ISDA Form as if we had executed an agreement on the Trade Date of the
     first such Transaction between us in such form with the Schedule thereto
     (i) specifying that (a) the governing law is English law and (b) the
     Termination Currency is US Dollars, (ii) incorporating the addition to the
     definition of "Indemnifiable Tax" contained in (page 48 of) the ISDA "Users
     Guide to the 1992 ISDA Master Agreements" and (iii) incorporating any other
     modifications to the ISDA Form specified herein."


2.   The terms of the particular Transaction to which this Confirmation relates
     are as follows:

     A. Bond Transaction:

          Buyer:                             Party B

          Seller:                            Party A

          Trade Date:                        06 Jan 04

          Value Date:                        20 Jan 2004

          Business Days:                     London, New York and Target

          Business Day Convention:           Modified Following

          Notional Amount:                   As set out below.


          "Bond Portfolio", with each bond constituting the Bond Portfolio being
          a "Bond"

                                       2
<PAGE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
   TICKER             ISSUER             COUPON %     MATURITY DATE      CCY      FACE AMOUNT         ISIN
---------------------------------------------------------------------------------------------------------------
<S>             <C>                      <C>          <C>                <C>      <C>             <C>
     TXU        Eastern Energy Ltd         6.75          1-Dec-06        USD       8,000,000      US27636PAE97
---------------------------------------------------------------------------------------------------------------
     CAT        Caterpillar Financial      2.59         15-Jul-06        USD       9,000,000      US14912LX637
                    Services Corp
---------------------------------------------------------------------------------------------------------------
     SBC           Pacific Bell           6.875         15-Aug-06        USD      10,000,000      US694032AZ68
---------------------------------------------------------------------------------------------------------------
   DRSDNR       Dresdner Finance BV         4           19-Jan-07        EUR       3,920,000      DE0002798204
---------------------------------------------------------------------------------------------------------------
    HSBC         Household Finance        4.375         17-Jan-06        EUR       6,270,000      XS0161020754
                       Corp
---------------------------------------------------------------------------------------------------------------
                 Portugal Telecom
   PORTEL          International           5.75         21-Feb-06        EUR      11,760,000      XS0124721027
                    Finance BV
---------------------------------------------------------------------------------------------------------------
     CFC         Countrywide Home          6.51         11-Feb-05        USD       8,000,000      US22237LEY48
                     Loans Inc
---------------------------------------------------------------------------------------------------------------
                    Landesbank
     LBW        Baden-Wuerttemberg         4.25          7-Mar-05        EUR      21,180,000      XS0143885241
                   Girozentrale
---------------------------------------------------------------------------------------------------------------
     BAC          Bank of America          5.25         27-Jun-06        EUR       7,840,000      XS0131695198
---------------------------------------------------------------------------------------------------------------
</TABLE>


          Security Reference:                Reference numbers as set out above.

          Bond Purchase Price:               USD 96,116,000.00

                                             On the Value Date Party B shall pay
                                             the Bond Purchase Price to Party A
                                             and Party A shall deliver the Bond
                                             Portfolio to Party B. For the
                                             avoidance of doubt, the delivery
                                             obligation of Party A shall be
                                             netted and discharged against Party
                                             B's obligation to deliver the Bond
                                             Portfolio to Party A as per the
                                             Securities Pledge Agreement dated
                                             [**] between Party A as Pledgee and
                                             Party B as Pledgor.

                                             Party B acknowledges and agrees
                                             that the Bond Portfolio has been
                                             purchased by it on its own
                                             assessment of the investment merits
                                             thereof and that its obligations in
                                             respect of the Asset Swap
                                             Transaction detailed below are
                                             independent of its purchase of the
                                             Bonds; and, for the avoidance of
                                             doubt, that its obligations shall
                                             not be relieved or affected in the
                                             event that the issuer of the Bonds
                                             fails to make any payment due under
                                             the Bonds or there is a
                                             modification to any of the terms
                                             thereof.


     B.   Asset Swap Transaction


          Trade Date:                        06 January 2004

          Effective Date:                    20 Jan 2004

                                       3
<PAGE>
    Termination Date:             01 February 2007

    Business Days:
                                  London, New York and Target

    Business Day Convention:      Modified Following

    FIXED AMOUNT A:

    Fixed Rate Payer A:           Party A.

    Fixed Amount A:               USD 25,000,000.00

    Fixed Rate Payer A            01 Oct 2004, 01 July 2005, 01 April 2006, and
    Payment Dates:                01 February 2007, subject to adjustment in
                                  each case in accordance with the Modified
                                  Following Business Day Convention.

                                  On each Fixed Rate Payer A Payment Date, Party
                                  A shall pay to Party B the Fixed Amount A.

    FIXED AMOUNT B:

    Fixed Rate Payer B:           Party B.

    Fixed Amount B:               An amount equal to all and any distributions,
                                  coupons (whether in cash or in the form of
                                  securities), and redemption proceeds in
                                  respect of the Bond Portfolio (each a
                                  "Distribution"),

    Fixed Rate Payer B            Each date on which a Distribution is paid
    Payment Dates:                or issued by the Issuer of any Bond
                                  constituting the Bond Portfolio.

                                  On each Fixed Rate Payer B Payment Date, Party
                                  B shall pay or deliver to Party A the Fixed
                                  Amount B.

    Account Details               Account Details for Party A:  To be determined

                                  Account Details for Party B:  To be determined

                                  and/or, in each case, such other accounts as
                                  may from time to time be advised by one Party
                                  to the other.

                                       4
<PAGE>
3.   MODIFICATIONS TO THE ISDA FORM

     (a)  Section 5(a)(vi); Cross Default will apply to both parties. If
          applicable to Party A "Threshold Amount" means 1% of its shareholders'
          equity (i.e. the sum of its capital and reserves). With regard to
          Party B "Threshold Amount" means 1% of its shareholders' equity (as
          calculated in accordance with generally accepted accountancy
          principles applicable to Party B). Section 5(a)(vi) shall be amended
          by adding the following words at the end thereof: "provided, however,
          that, notwithstanding the foregoing, an Event of Default shall not
          occur under either (1) or (2) above if (A) (I) the default, or other
          similar event or condition referred to in (1) or the failure to pay
          referred to in (2) is a failure to pay or deliver caused by an error
          or omission of an administrative or operational nature, and (II) funds
          or the asset to be delivered were available to such party to enable it
          to make the relevant payment or delivery when due and (III) such
          payment or delivery is made within three (3) Local Business Days
          following receipt of written notice from an interested party of such
          failure to pay, or (B) such party was precluded from paying, or was
          unable to pay, using reasonable means, through the office of the party
          through which it was acting for purposes of the relevant Specified
          Indebtedness, by reason of force majeure, act of State, illegality or
          impossibility."

     (b)  The definition of "Specified Transaction" in Section 14 of this
          Agreement is hereby amended by: (A) deleting in the second through the
          fourth lines thereof the words "between one party...which is a" and
          replacing them with the words "(i) in the case of Party A, between
          Party A (or any Credit Support Provider of such party or any
          applicable Specified Entity of such party) and Party B (or any Credit
          Support Provider of such party or any applicable Specified Entity of
          such party), and (ii) in the case of Party B, between Party B (or any
          Credit Support Provider of such party or any applicable Specified
          Entity of such party) and any other person or entity, including
          without limitation Party A (or any Credit Support Provider of such
          party or any applicable Specified Entity of such party), including
          without limitation any"; and (B) adding the text "commodity
          transaction, credit derivative transaction, repurchase or reverse
          repurchase transaction, securities lending transaction" after the text
          "foreign exchange transaction" appearing in the sixth line thereof.

     (c)  Credit Support Document: The Securities Pledge Agreement between Party
          B as pledgor and Party A as pledgee dated as of 16 January 2004 shall
          be a Credit Support Document for purposes of this Transaction.


4.   OFFICES

The Office of Party A for this Transaction is London.

The Office of Party B for this Transaction is Singapore.

                                       5
<PAGE>
5.   CALCULATION AGENT

Party A acting reasonably and in good faith according to its customary practices
and procedures, provided, however, that absent manifest error, the Calculation
Agent's computations hereunder shall be binding for all purposes.


6.   ADDITIONAL REPRESENTATIONS

Each party represents to the other party (except for 6(C) where Party B
represents to Party A) on the date hereof that (absent a written agreement
between the parties that expressly imposes affirmative obligations to the
contrary for this Transaction):

     (A)  NON-RELIANCE

          It has made its own independent decision to enter into this
          Transaction, is acting at arm's length for its own account, and is not
          relying on any communication (written or oral) of the other party as a
          recommendation or investment advice regarding this Transaction.

     (B)  EVALUATION AND UNDERSTANDING

          It has the capability to evaluate and understand (on its own behalf or
          through independent professional advice), and does understand, the
          terms, conditions and risks of this Transaction and is willing to
          accept those terms and conditions and to assume (financially and
          otherwise) those risks.

     (C)  TRANSACTIONS IN THE COLLATERAL

          It understands that the other party and its affiliates may engage in
          proprietary trading for its own account in the Collateral or similar
          instruments and that such trading may affect the value of the
          Collateral.

     (D)  CONCERNING THE CALCULATION AGENT

          The Calculation Agent is not acting as a fiduciary for or as an
          advisor to either party in respect of its duties as Calculation Agent
          in respect of this Transaction and any determination by the
          Calculation Agent in the course of such duties shall be conclusive and
          binding on each party (in the absence of manifest error) and no
          liability shall attach to the Calculation Agent in respect thereof.


7.   OTHER TERMS

     For the purposes of this Transaction the parties agree that the ISDA Form
     shall be amended as follows:

                                       6
<PAGE>

          (a) Section 2(b) shall be amended by adding the words "(or place for
          receipt of delivery as the case may be)" after the word "account" in
          line 1.

          (b) Section 2(e) shall be amended by adding the words "for any costs
          losses or expenses reasonably incurred by the other party in
          connection with such delivery default (including but not limited to
          any costs of funding)" after the word "party" in line 9 and by the
          deletion of the rest of such section from the word "if" after the word
          "demand" in the same line.

          (c) In addition to the representations made pursuant to Section 3,
          each party represents that where it is required to make a delivery of
          Bonds it will have the right to transfer such Bonds and it will convey
          the full legal and beneficial title of the Bonds to be delivered free
          and clear of any lien, charge, claim, encumbrance or security interest
          whatsoever.

          (d) Section 4(e) shall be amended by adding the following words at the
          end thereof: "except in the case of any Stamp Tax payable in
          connection with the delivery of the Bonds to be Delivered where
          payment of the Stamp Tax shall be for the account of the party who
          would bear such cost in respect of such Transaction in accordance with
          the normal practice on the Clearance System".

          (e) Section 5(a)(i) shall be amended by adding the words "(and in the
          case of delivery, each being a Local Business Day on which a
          Settlement Disruption Event has not occurred)" after the word "Day" in
          line 3.

          (f) The definition of Local Business Day in Section 14 shall be
          amended by adding the words "and, in respect of those Transactions
          which settle by physical delivery, the clearance system or exchange
          specified in the relevant Confirmation" after the word "banks" in line
          1 of the definition.

          (g) Additional Termination Event. The following shall constitute an
          Additional Termination Event with respect to Party B only, whereby
          Party B shall be the sole Affected Party and the Asset Swap
          Transaction herein shall be the Affected Transaction:

               (i) If the parties are not able to negotiate, execute and deliver
               an agreement in the form of the ISDA Master Agreement
               (Multicurrency-Cross Border) (the "ISDA Form") with such
               modifications as acceptable to Party A within 90 calendar days of
               the Trade Date of this Transaction; or

               (ii) If there is a default under the terms of any of the Bond(s)
               constituting the Bond Portfolio such Bond(s) being the "Defaulted
               Bond"; or

               (iii) If the Mark to Market Value of the outstanding Bond
               Portfolio held as collateral by Party A declines to less than 70%
               of the Mark to Market Value of the Asset Swap Transaction herein,

               where

                                       7
<PAGE>
               "Mark to Market Value of the outstanding Bond Portfolio" is the
               market value of the outstanding Bond Portfolio held as collateral
               by Party A, as determined by the Calculation Agent; and

               "Mark to Market Value of the Asset Swap" shall be an amount in
               USD determined by us to be our total aggregate gain or, expressed
               as a negative number, losses and costs in connection with
               termination of the Asset Swap Transaction on the relevant date,
               including any loss of bargain, cost of funding or, at our
               election but without duplication, loss or cost incurred as a
               result of its terminating, liquidating, obtaining or
               re-establishing any hedge or related trading position (or any
               gain resulting from any of them).

               Party A may (but shall not be obliged to) agree, at its sole
               discretion, in the case of occurrence of sub clause (ii) above,
               to accept substitute bonds acceptable to Party A as collateral
               ("Substitute Bond Collateral"), and return the Defaulted Bond to
               Party B in lieu thereof so as to maintain the Mark to Market
               Value of the outstanding Bond Portfolio at a value greater than
               or equal to the Mark to Market Value of the Asset Swap
               Transaction.

               Party A may (but shall not be obliged to) agree, at its sole
               discretion, in the case of occurrence of sub clause (iii) above,
               to accept bonds acceptable to Party A as collateral ("Top up Bond
               Collateral") which shall therefrom form part of the Bond
               Portfolio, so as to maintain the Mark to Market Value of the
               outstanding Bond Portfolio at a value greater than or equal to
               the Mark to Market Value of the Asset Swap Transaction.

                                       8
<PAGE>
Please confirm that the foregoing correctly sets forth the terms of our
agreement by having an authorised officer sign this fax copy and return it by
fax to:

     Deutsche Bank AG London
     Attention:        ICT Documentation
     Phone:            (020) 7545 9220/ 7547 1952
     Fax:              (020) 7545 1913


This message will be the only form of Confirmation dispatched by us. If you wish
to exchange hard copy forms of this Confirmation, please contact us.

Yours sincerely,

Deutsche Bank AG

By: /s/ Jamie Hunt



Name: Jamie Hunt
Authorized Signatory



By: /s/ Bianca Mueller



Name: Bianca Mueller
Authorized Signatory



Confirmed as of the date first written above:

ST Assembly Test Services Ltd



By:    /s/ Tan Lay Koon / /s/ Pearlyne Wang
       ------------------------------------
Name:  Tan Lay Koon/Pearlyne Wang
Title: Chief Executive Officer/Vice President, Finance

                                       9