Anchor Semiconductor Closes 2nd Round Financing for Design for Manufacturing Business Expansion

SUNNYVALE, Calif.—(BUSINESS WIRE)—October 4, 2006— Anchor Semiconductor, Inc., the pioneer and technology leader in semiconductor DFM (design-for-manufacturing) software products for controlling integrated circuit layout-to-silicon pattern transfer, today announced it has closed its second round of financing in the amount of $7.2 million. H&Q Asia Pacific led the financing. This new infusion of funds will be used to significantly grow R&D, applications engineering, sales and the marketing team.

Sean Peng, Managing Director of H&Q Asia Pacific, stated, "Anchor's NanoScope product line has made strong progress in the marketplace, warranting the interest of investors. We have been paying close attention to DFM start-up companies for a long time now. Anchor impressed us with its pattern transfer technology, which can resolve the challenges of transferring IC layout into manufacturing at advanced technology nodes. We are observing the increased adoption of Anchor's DFM products by top customers in the semiconductor industry. It's clear to us that Anchor's products are gaining traction and seem a step ahead of other DFM companies who are attempting to accomplish the same task."

Dr. Chenmin Hu, President of Anchor Semiconductor, said, "From both a technology and business perspective, this is the right time for us to expand the company. DFM has moved from a technological concept to a product reality as chip designers struggle with lithographic problems while designing for 65nm and 45nm manufacturing processes. Clearly, chip design flows that large chip and integrated device manufacturers use will mandate the inclusion of DFM tools."

Anchor's customers include large integrated device manufacturers, leading semiconductor foundries, advanced IC design companies and major semiconductor equipment vendors. The products have been proven at Xilinx, TSMC and other foundries and IDMs.

In nanometer IC technologies, the yield problems are mainly caused by process unfriendly layout patterns. Controlling layout-to-silicon pattern transfer has become a main challenge to the IC industry in multiple production steps. Anchor has been working very closely with a number of industry leaders in joint development of advanced solutions for bridging IC design and manufacturing at 65-nm and 45-nm technology nodes. Anchor's software solutions help customers during both IC design and IC manufacturing phases reach higher yields faster.

About Anchor Semiconductor

Founded in late 2000 and headquartered in Sunnyvale, California, Anchor Semiconductor, Inc. is the pioneer and technology leader in semiconductor DFM software products for controlling layout-to-silicon pattern transfer to bridge the gap between design and manufacturing. With its breakthrough pattern-centric architecture, fast and accurate layout patterning simulation, flexible and powerful pattern analysis capabilities, Anchor's NanoScope software product family is uniquely capable of addressing the layout-to-silicon patterning challenges in both design and manufacturing domains. Anchor's website is at http://www.anchorsemi.com.

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Anchor Semiconductor
Eric Lin, 408-748-8600 ext. 1101
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or
Lee PR
Amy Battrell, 650-363-0142
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Debbie McDermott, 650-363-0142
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