X-FAB and 1st Silicon to MergeErfurt, Germany, Sarawak, Malaysia, March 22, 2006.
XTRION N.V., the controlling shareholder of X-FAB Semiconductor Foundries AG, one of the world's leading analog mixed-signal semiconductor foundries, and Sarawak Economic Development Corporation, the controlling shareholder of 1st Silicon (Malaysia) Sdn. Bhd., a premier dedicated global semiconductor foundry, have agreed to merge both companies. The move, which signals X-FAB's continuing growth and nearly doubles its capacities, extends X-FAB's business activities to the Asia/Pacific region and gives it access to first-class manufacturing capabilities for 0.25, 0.18 and 0.13 micron technologies.
The combined manufacturing capacity of the merged company will be approximately 700,000 200mm-equivalent wafers per year, and the sales of the new company are expected to exceed $300 million USD in 2006.
Commenting on the merger, X-FAB's Chairman of the Supervisory Board, Mr. Roland Duchâtelet, said, "The synergy gained by integrating 1st Silicon into X-FAB reflects excellent value for customers, fabless companies and IDMs alike. They will see no change in the long-term strategy and no change in support for existing customers. Moreover, the industry will experience the same expert precision and reliable, cost-effective manufacturing of high-quality products that both companies are known for."
YAB Pehin Sri Haji Abdul Taib Mahmud, Chief Minister of Sarawak, who called the merger a "win/win" for both companies, said, "Becoming part of a company as healthy and forward-looking as X-FAB is the ideal business move for 1st Silicon. It provides the best ROI, and creates long-term stability for a Malaysian-based manufacturing site for high-performance technologies."
Hans-Juergen Straub, Chairman and CEO of X-FAB, added, "1st Silicon, with its advanced processes, provides an excellent complement to X-FAB's current wafer production capabilities, and opens our analog/mixed-signal roadmap to new technology platforms and application areas. We are pleased to extend our local manufacturing presence to Asia."
X-FAB Semiconductor Foundries AG, headquartered in Erfurt, Germany, is a leading analog/mixed-signal foundry manufacturing silicon wafers for analog-digital integrated circuits (mixed-signal ICs) on customer order. The company maintains wafer production facilities in Erfurt (Germany), Plymouth (UK) and Lubbock, Texas (US), and employs approximately 1,100 people worldwide.
Wafers are manufactured based on ultra-modern modular CMOS and BiCMOS processes with technologies ranging from 1.0 down to 0.35 micron. Main application areas are the automotive, communications, consumer and industrial sectors.
About 1st Silicon
Founded in 1998, 1st Silicon is one of the global semiconductor industry's premier foundries dedicated to reliable, cost-effective manufacturing processes for high-volume system-on-chip (SoC) designs and innovative niche markets. Its 0.25, 0.18 and 0.13 micron manufacturing services cover embedded non-volatile and flash memories, high-voltage and mixed-signal technologies, CMOS image sensors and charged-couple devices (CCDs). These technologies are vital for automobiles, multimedia, displays, Internet-enabled applications, smart cards, and other market applications.