September 14, 2007 — Soitec, supplier of silicon-on-insulator (SOI) wafers and other engineered substrates, and the French Agency for Industrial Innovation (AII), have announced the European Commission’s authorization for the funding of the strategic R&D program, NanoSmart. The total cost of the program, for all partners, comes to 200 million Euros over five years. The Soitec Group will receive public money amounting to 62 million Euros, with 34 million Euros consisting of a direct subsidy, and 28 million representing an advance to be refunded depending on the program’s commercial success.

The R&D project will involve Soitec, its subsidiary Picogiga based in Les Ulis, France, and Leti, the electronic and information technology laboratory that is part of the public French body CEA. NanoSmart is a strategic program for Europe, and will develop advanced substrates for microelectronic and optoelectronic components, spotlighting the significant role played in substrate engineering innovation, not only by France but more specifically by Bernin and Minalogic, the “Pole de Competitivite” near Grenoble.

As a nanotechnology research platform, NanoSmart will develop a new generation of advanced materials to improve the performance and electrical consumption of image processors, high-frequency telecommunications components, power components for the automotive industry and home audiovisual equipment, and LEDs for lighting.

“Advanced substrates represent a unique opportunity to strengthen Europe’s position in the high-tech industry, where competitiveness is based on innovation,” said Andre-Jacques Auberton-Herve, president and CEO of Soitec. This action answers AII’s core business mission by sustaining the French industry through promoting innovation and significant projects.