SVTC Joins Forces with SEMATECH Foundry ATDF

ATDF and SVTC Technologies today announced a merger that could
change the landscape for semiconductor and nanotechnology
development by expanding secure, cost-effective access to advanced
process tools and capabilities for a wide range of technology
companies.

Austin-based ATDF is the research and development (R&D) foundry
and subsidiary of industry consortium SEMATECH. SVTC is a San
Jose-based development foundry and recent spin-off from Cypress
Semiconductor. These complementary organizations currently serve more
than 200 customers world-wide.

The combined organization will offer industry partners a secure,
cost-effective alternative to dedicated R&D fabs or shared
development/production operations. Partners and customers include
semiconductor companies, foundries and equipment suppliers as well as
universities and other research institutions.

The merger is expected to be completed by year-end. Terms were not
released.

Wide Range of Process Development Capabilities

The merger is good news for companies requiring process
development and commercialization on advanced 200mm/300mm
production-grade equipment in a disciplined and operationally
effective environment, said Dave Bergeron, SVTC´s chief executive
officer.

"Companies from all areas of the industry are showing real
interest in our model. They represent such diverse application areas
as non-volatile memory, micro-electromechanical systems (MEMS),
imaging, high-voltage and analog technologies. We even have
nano-technology and solar PV cell development taking place in our
facilities - it is exciting to witness the range of companies that can
accelerate their path to market with us."

New Opportunities in Austin

Dave Anderson, general manager of ATDF, said the Austin foundry
would continue to serve global and regional customers and support
university research.

"The merger is an excellent opportunity to expand capabilities;
broaden our global customer base; grow our emerging technology, wafer
services and tool access businesses; and create new jobs. Together,
SVTC and ATDF represent a major force in both the domestic and
international markets," he said.

Growing Trend in New Process Development

SVTC´s Bergeron pointed out that companies are turning to new
materials and processes to solve a variety of technical challenges in
integration, small-scale geometries and phase-state control, among
others.

"Before plunking down millions of dollars on new equipment for
this kind of development, senior technologists are now coming to us
for a cost-effective solution that still enables them to pursue their
development objectives without compromise. Even fabless companies and
start-ups can take advantage of our model for development support and
commercialization - previously available only to IDMs and consortia
with deep pockets."

"Today even large companies are facing increasingly challenging
economics of running stand-alone R&D fabs," Bergeron said. "SVTC and
ATDF together can support large projects and we have the scale to
invest for the future."

Pioneering Roots

Members of SEMATECH were at the forefront of the trend toward
shared-use development foundries in 2004 when they launched ATDF into
the commercial mainstream as an independent, for-profit subsidiary,
according to SEMATECH President and CEO Michael Polcari.

"Today´s merger is a real success story - for ATDF and SVTC, for
SEMATECH and for the entire semiconductor industry," Polcari said.
"SVTC, whose investors include Oak Hill Capital Partners and Tallwood
Venture Capital, will use its substantial resources to take the
development foundry concept to the next stage."

About SVTC Technologies

Silicon Valley´s SVTC(TM) Technologies, LLC provides a unique
cost-effective solution for both large and small developers of novel
semiconductor and nano- technologies. Customers in such diverse areas
non-volatile memory , MEMS, photovoltaics, biotech and high-voltage
all work independently in an IP-secure environment on advanced 200mm
equipment. In addition to providing facilities and expertise, SVTC
offers customers superior cycle times, and faster time to revenue.
More information can be found at www.svtc.com.

About ATDF

ATDF is where semiconductor manufacturers, equipment and materials
suppliers, universities and other high-tech firms from around the
world come to perform cutting-edge research and development. ATDF
engineers develop baseline processes that bring new tools and
materials to manufacturing at reduced cost. With ATDF´s highly
customized development activities, customers have access to the
processes, electrical data and equipment necessary to bring products
to market--fast. Because ATDF helps set the roadmap for future
technologies, it is able to offer next-generation technology today.
More information can be found at www.atdf.com.

About SEMATECH

For 20 years, SEMATECH, www.sematech.org, has set global
direction, enabled flexible collaboration and bridged strategic R&D to
manufacturing. Today, SEMATECH continues accelerating the next
technology revolution with its nanoelectronics and emerging technology
partners.

SVTC and the SVTC logo are trademarks of SVTC Technologies, LLC.
SEMATECH and the SEMATECH logo are registered servicemarks of
SEMATECH, Inc. All other trademarks are the property of their
respective owners.