SOURCE: ELMOS Semiconductor AG

March 04, 2008 02:06 ET

ELMOS to Cooperate With MagnaChip on Foundry Services

DORTMUND, GERMANY--(Marketwire - March 4, 2008) -



Joint forces to focus on automotive semiconductors

Dortmund, Germany, and Seoul, South Korea: ELMOS Semiconductor AG (FSE: ELG) and MagnaChip Semiconductor Ltd. have signed a cooperation agreement regarding the development of automotive semiconductor technologies. In a second step, ELMOS is going to use the foundry services of MagnaChip regarding these automotive technologies, with MagnaChip delivering processed wafers to ELMOS.

Both partners will benefit from the synergies generated by the combination of the long-term experience of ELMOS within automotive industries and MagnaChip's leading edge technology base and world-class manufacturing capabilities. ELMOS' customers will be served with analog/mixed-signal solutions designed by ELMOS and manufactured by MagnaChip following the high automotive quality requirements.

"ELMOS has a strong reputation within the automotive industry. This cooperation agreement is expected to enable us to open and serve the automotive semiconductor market with our foundry services," said Channy Lee, Executive Vice President and General Manager of MagnaChip's Semiconductor Manufacturing Services Division.

Supporting its outsourcing strategy, this cooperation allows ELMOS to quickly react to varying volumes by flexible and secure sourcing complementing its in-house manufacturing capabilities. The processed wafer material from MagnaChip will be tested and assembled in the established way under ELMOS' management.

"With MagnaChip we have found a competent and reliable partner for our special manufacturing requirements. The partnership will enhance our long-term competitiveness in the market and represents another milestone in our network of cooperation", stated Dr. Anton Mindl, CEO of ELMOS Semiconductor.

MagnaChip's Semiconductor Manufacturing Services offers over 170 process flows to its customers. MagnaChip often partners with key customers to jointly develop or customize specialized processes that enable customers to improve their products. The company's manufacturing services are targeted to customers who require differentiated, specialty analog and mixed-signal process technologies, such as high voltage CMOS, embedded memory and power. With this joint arrangement, MagnaChip and ELMOS enter into a clear commitment for long-term supply that will enable automotive customers to participate in a multi-site sourcing strategy for automotive semiconductors.

About ELMOS Semiconductor

ELMOS is a leading developer and producer of customer-specific system solutions for many years in the automotive sector. Based on the modular high-voltage CMOS technology, a great amount of analog mixed-signal circuitry elements such as voltage regulators, analog/digital converters, power-drives and NVM storage offer a huge range of integration possibilities for customers' ideas. In addition, MEMS-based sensor systems and dedicated packages both developed and manufactured within the ELMOS-Group enable ELMOS to supply silicon-based microsystems. About 90 percent of sales are achieved with automotive ICs. ELMOS is listed on the Prime Standard of the German Stock Exchange. For more information, visit www.elmos.de.

About MagnaChip Semiconductor

Headquartered in Seoul, South Korea, MagnaChip Semiconductor is a leading, Asia-based designer and manufacturer of analog and mixed-signal semiconductor products for high volume consumer applications, such as mobile phones, digital televisions, flat panel displays, notebook computers, mobile multimedia devices and digital cameras. The Company has a broad range of analog and mixed-signal semiconductor technology, supported by its 28-year operating history, large portfolio of registered and pending patents and extensive engineering and manufacturing process expertise. For more information, visit www.magnachip.com.

Forward-Looking Statements:

Certain statements contained in this press release contain forward-looking statements regarding MagnaChip Semiconductor's operations, economic performance and financial condition. Although MagnaChip Semiconductor believes that the expectations reflected in these statements are reasonable, no assurance can be given that such expectations will prove to have been correct as a result of many factors, including those described in MagnaChips annual report on Form 10-K for the year ended December 31, 2006, which was filed with the Securities and Exchange Commission on March 30, 2007.

Press Contacts:
ELMOS Semiconductor AG
Mathias Kukla, PR Manager
Tel: +49 231 7549 199
mkukla@elmos.de

MagnaChip
In Korea:
Mi-Jeong HAN, PR Manager
Tel: 82-2-6903-3195
mj.han@magnachip.com

In the U.S.:
Joseph Villalta at The Ruth Group
Tel: +646-536-7003
jvillalta@theruthgroup.com





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