AG produces first wafers in its new Singapore fab

Siltronic announced the production of the first
wafers in its latest state-of-the-art 300 mm fab in Singapore. The production marks an
important milestone in the strategic capacity expansion of Siltronic’s global production
network.

“It fills me with immense pride to see the production of the first wafers from the line. This is a
decisive milestone in the history of Siltronic. I am delighted to see that the test wafer
production has started slightly ahead of schedule. I would therefore like to congratulate and
thank all the employees and suppliers involved for their contributions. We look forward to
supplying our customers with leading-edge wafers from this new state-of-the-art fab,” said
Dr. Michael Heckmeier, CEO of Siltronic AG.

Despite many challenges, including the global pandemic and supply chain constraints, the
construction of the new fab, which started in 2021, is on schedule and on budget. By the end
of 2024, around 2 billion Euro will have been invested into this greenfield project. This will be
followed by further investments on a smaller scale to further ramp the production.

The large-scale project covers an area of approximately 20 soccer fields. At peak
construction times, more than 5,000 workers were on site for both construction activities and
facilities installation. The fab is supported by approximately 5,500 piles which extend up to
60 meters into the ground. In total, 150,000 m3 of concrete and more than 35,000 tons of
steel have been used.

In the mid-term, the new fab is expected to be highly cost efficient due to the high degree of
automation and deployment of digitalization, coupled with its strategic proximity to the existing 200- and 300 mm fabs in Singapore, which will lead to economies of scale and synergies.

The new fab will serve both medium and long-term demand growth in the semiconductor
market, which is driven by megatrends such as digitalization, artificial intelligence, and
electromobility. As originally planned, the production ramp phase will commence from the
beginning of next year.

“The trust and support of our customers has been a key factor for this investment. In the
ramp phase, sales from the new fab have been secured to a high degree by long-term
agreements. Customers have also contributed significantly to the initial financing of the fab
through prepayments,” added Claudia Schmitt, CFO of Siltronic AG.