AMI Semiconductor and MagnaChip Semiconductor Develop Specialized 0.18-Micron Process Technology; Relationship to Extend Support for Next Generation Medical Technologies

POCATELLO, Idaho & SEOUL, Korea—(BUSINESS WIRE)—Nov. 4, 2005— AMI Semiconductor (Nasdaq: AMIS), a designer and manufacturer of state-of-the-art integrated mixed-signal and structured digital products and mixed-signal foundry services, and MagnaChip Semiconductor, a leading designer, developer and manufacturer of mixed-signal and digital multimedia semiconductors, today announced a development and foundry relationship. The relationship combines each company's key competencies creating new technology platforms that enable next generation medical devices. Additionally, this development effort will expand opportunities for both companies into other markets.

These technology platforms include a specialized, proprietary 0.18-micron process targeted at medical applications requiring ultra-low power and robust non-volatile memory solutions. The initial process development will take place in MagnaChip's manufacturing facility in Cheongju, Korea, where MagnaChip and AMIS employees will collaborate to qualify and perfect the process to meet the demanding specifications laid out by both companies.

Next generation medical devices, such as those used for neurostimulation in pain management, spinal cord injuries and epileptic seizures often require highly technical designs that result in the need for a specialized manufacturing approach. By bridging the abilities of both companies, MagnaChip and AMIS are perfectly-suited to provide complete design-to-manufacture service for a variety of highly technical next generation medical technologies that demand ultra-low power capability to extend device battery life; increased functionality; memory for increased computational demand; and ultra-high reliability. Other key medical market segments, including cardiac rhythm management and continuous glucose monitoring, will also benefit from these new technology platforms.

The combination of high gate count with quality mixed-signal technology to be offered by these platforms will bring exciting opportunities in other core markets, including automotive and industrial. The new process will support low power usage and high reliability in harsh conditions making it an optimal fit for these markets.

"We are excited to begin this development project with MagnaChip, combining their expertise in deep submicron process technology with our proven, high reliability CMOS technology," said Chris King, president and CEO for AMI Semiconductor. "We believe that this relationship will benefit the entire AMIS business, providing our business units the ability to design ICs with high gate counts, as well as offering turn-key customers the next-generation, specialized process technology required to produce robust solutions for demanding automotive, medical and industrial applications."

"We look forward to working closely with AMIS on these new process technologies, providing each company the opportunity to expand its offerings to further diversify customer bases and market opportunities," said Dr. Youm Huh, president and CEO of MagnaChip Semiconductor. "Working with leading global companies, like AMIS, and developing new market opportunities for our technologies and processes is key to our continued success."

AMIS and MagnaChip expect to provide supporting design libraries and IP late in 2005, with pilot production at MagnaChip's Cheongju facility starting in Q2 of 2006.

About MagnaChip Semiconductor

MagnaChip Semiconductor is a leading designer, developer and manufacturer of mixed-signal and digital multimedia semiconductors addressing the convergence of consumer electronics and communications devices. MagnaChip provides wafer foundry services utilizing CMOS high voltage, embedded memory, analog and power process technologies for the manufacture of IC's for customer-owned designs. We also focus on CMOS image sensors and flat panel display drivers, which are complex, high performance, mixed-signal semiconductors that capture images and enable and enhance the features and capabilities of both small and large flat panel displays. MagnaChip has world-class manufacturing capabilities and an extensive portfolio of approximately 12,500 registered and pending patents. As a result, MagnaChip is a valued partner in providing leading technology solutions to its customers worldwide. For more information, visit www.magnachip.com.

About AMI Semiconductor

AMI Semiconductor (AMIS) is a leader in the design and manufacture of silicon solutions for the real world. As a widely recognized innovator in state-of-the-art integrated mixed-signal products and structured digital products, AMIS is committed to providing customers with the optimal value, quickest time-to-market semiconductor solutions. Offering unparalleled manufacturing flexibility and dedication to customer service, AMI Semiconductor operates globally with headquarters in Pocatello, Idaho, European corporate offices in Oudenaarde, Belgium, and a network of sales and design centers located in the key markets of North America, Europe and the Asia Pacific region. For additional information, please visit www.amis.com.



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