X-FAB and CEITEC Reach Strategic Process Licensing Agreement for First CMOS Commercial Semiconductor Front-End Manufacturing in Brazil

ERFURT, Germany & PORTO ALEGRE, Brazil—(BUSINESS WIRE)—December 12, 2007— X-FAB Silicon Foundries, the world's largest foundry group for analog/mixed-signal semiconductor applications, and Brazilian-government-backed entity the Excellence Center for Advanced Electronic Technology - known as CEITEC - today announced they have reached a strategic licensing agreement for semiconductor manufacturing. Under terms of the agreement, CEITEC will license X-FAB's advanced 0.6 micrometer process technology called XC06, enabling CEITEC to establish the first commercial CMOS semiconductor front-end manufacturing operation in Brazil. In return, X-FAB gains access to the emerging and fast-growing Latin American electronics market. Small volume manufacturing and prototyping will take place at CEITEC's fab in Porto Alegre, Brazil, and larger volumes will be manufactured by X-FAB in its facilities in Erfurt, Germany and Lubbock, Texas, USA.

CEITEC is part of a Brazilian-government-sponsored effort to develop a domestic microelectronics industry. As part of this effort, seven chip design centers have been created, which now have direct access to Brazil's first semiconductor front-end wafer fab that will use the XC06 technology. CEITEC's 0.6 micrometer process will be fully compatible with X-FAB's XC06 process.

The XC06 process technology from X-FAB is a 0.6 micrometer state-of-the-art analog/mixed-signal technology featuring a large variety of primitive devices including high-voltage transistors and integrated non-volatile memories (NVMs) to address a wide range of analog/mixed-signal design needs for automotive, industrial and power management applications, with possible extensions for opto and microelectromechanical systems (MEMS). CEITEC's XC06 process will be supported by the X-FAB design kit, which includes parametric cells; corner and Monte Carlo modeling capabilities, I/O-, digital- and analog libraries.

"Win/Win" Proposition

CEITEC's fab is expected to open during the third quarter of 2008. Both CEITEC and X-FAB recognize there are synergies resulting from their licensing agreement.

"X-FAB is the leading analog/mixed-signal pure-play foundry, and we are excited to license its state-of-the-art technology for our 6-inch prototype fab," said Sergio Souza Dias, CEITEC's president. "This technology will enable us to establish commercial front-end semiconductor manufacturing domestically in Brazil, to help meet the fast-growing demand here for semiconductor chips."

"CEITEC is pioneering IC design and front-end semiconductor manufacturing in Latin America, and we greatly value the opportunity to establish X-FAB's processes for analog/mixed-signal ICs in this highly strategic market," said Thomas Hartung, vice president of sales and marketing at X-FAB. "We are pleased that our technology can help CEITEC accelerate its efforts in Brazil - especially for automotive, industrial and power management applications."

About CEITEC

CEITEC is a technological center specialized in IC design and manufacturing. It aims to stimulate Brazilian semiconductor component production and manpower qualification in microelectronics. The initiative results from a partnership among government entities, universities, research centers and companies. It is located in the city of Porto Alegre - RS. CEITEC does the design, prototyping, and small volume manufacturing of ASICs, offering chip development services to the market according to the specific need of each customer, operating from the first step of the development, taking part in the specification, technology definition, implementing the design, and testing and validating the final product. For more information, please visit www.ceitec.org.br.

About X-FAB

X-FAB is the leading analog/mixed-signal foundry group manufacturing silicon wafers for analog-digital integrated circuits (mixed-signal ICs). X-FAB maintains wafer production facilities in Erfurt and Dresden (Germany), Plymouth (UK), Lubbock, Texas (US) and Kuching, Sarawak (Malaysia), and employs approximately 2,600 people worldwide. Wafers are manufactured based on ultra-modern modular CMOS and BiCMOS processes with technologies ranging from 1.0 to 0.18 micrometers, for applications primarily in the automotive, communications, consumer and industrial sectors. For more information, please visit www.xfab.com.

Contact:

X-FAB
Thomas Hartung, +49-361-427-6160
VP Marketing & Sales
Email Contact
or
ThinkBold Corporate Communications for X-FAB
Sarah Miller, +1-231-264-8636
Email Contact
or
CEITEC
Andréia Grams, +55 51 3308 9457
Marketing and Communication Assistant
Email Contact
Miguel Virgilio Petkovicz, +55 51 3384 3392
Marketing Analyst
Email Contact




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