X-FAB Semiconductor Foundries and 1st Silicon Complete Merger

Erfurt, Germany, Sarawak, Malaysia, 9월 6, 2006.

X-FAB Silicon Foundries today announced completion of the merger of X-FAB Semiconductor Foundries AG with 1st Silicon (Malaysia) Sdn. Bhd.; the contracts became effective on Sept. 1, 2006. The extended X-FAB Group is organized under the umbrella of the Belgian holding X-FAB Silicon Foundries N.V., located in Tessenderlo, Belgium. (See related press release dated March 22, 2006 at www.xfab.com)

Belgium-based XTRION N.V., with approximately 58-percent of the shares, and Malaysia-based State Financial Secretary Inc. of Sarawak, holding approximately 35-percent of the shares, are the two major shareholders. 1st Silicon will operate in the future as X-FAB Sarawak Sdn. Bhd.

X-FAB Silicon Foundries also announced that Datu Ahmad Tarmizi Hj. Sulaiman was elected chairman of the board of directors. Hans-Jürgen Straub (Chief Executive Officer) and Roger Diels (Executive Vice President) are named as management and executive directors of the board.

The combined entity has a capacity of 700,000 200mm-equivalent wafers per year, and offers customers production technologies ranging from 1.0 to 0.13 micrometers.

"This merger represents a significant step in the development of the X-FAB Group in terms of extending its market position, production capacity and technology portfolio," said Mr. Straub. "As a global player and the leading analog mixed-signal foundry, X-FAB Silicon Foundries offers its customers stability and a solid technology base for the most advanced integrated circuit development."

"We are very excited about this successful merger and are extremely optimistic about the future of Sarawak as a key high-tech region," said Datu Tarmizi. "The merger is an ideal partnership because it promotes healthy development for our high-tech foundry in Sarawak. Through this merger, X-FAB Silicon Foundries with fabs in Europe, the US and Asia has been put on the map as a truly global foundry source."