X-FAB Expands Production Capacity at Plymouth, UK Facility

Erfurt, Germany, United Kingdom, Mai 21, 2003.

Due to projected continued growth, and in connection with a high level of customer interest in X-FAB's 0.35 µm process family, X-FAB Semiconductor Foundries AG will expand the production capacity at their Plymouth, UK facility. Related to this effort, the firm will today receive new production equipment for photolithography (a wafer stepper) from the company ASML.

The 8-inch production line in Plymouth is primarily utilized for the 0.35 µm process family. The existing 0.35 µm technologies are continually being supplemented with new process options. At present, X-FAB is successfully developing BiCMOS, high-voltage and embedded flash memory technologies. The current production capacity for X-FAB's Plymouth facility will be expanded in two stages to a total of 1,550 8-inch wafer starts per week. The resulting production capacity is expected to triple from current levels.

"We have chosen the right time to act: the number of contracts is growing, and we are gearing ourselves up for a strong 2004," said Hans-Juergen Straub, CEO of X-FAB Group. "We are recording a high level of interest in our 0.35 µm process platform. In order to be able to offer our customers the typically high level of flexibility, we have decided, at precisely the correct juncture, to bring capacity in line with increasing demand."

About X-FAB
X-FAB is an independently-owned, mixed-signal foundry with headquarters in Erfurt, Germany. The company has three manufacturing sites: X-FAB Semiconductor Foundries AG (Erfurt, Germany), X-FAB UK Ltd. (Plymouth, United Kingdom) and X-FAB Texas Inc. (Lubbock, Texas), with a combined capacity of approx. 8,000 8-inch equivalent wafer starts per week. Worldwide, X-FAB has more than 900 employees.