IXYS engages with GMCH to fab power semiconductors

May 5, 2011 – BUSINESS WIRE — IXYS Corporation (NASDAQ:IXYS) and General Motors Components Holdings (GMCH) entered into an agreement for the fabrication of power semiconductor wafers.

Given the growing importance of power semiconductors for transportation industries, including for electric trains, cars, electrical and hybrid vehicles (EVs, HEVs), it is a strategic fit for IXYS to engage with GMCH in order to establish a large-scale power semiconductor wafer fabrication base in the USA.

"Our customers desire multiple sources for our products, especially wafer fabrication. We have been using our Clare fab in MA, which is essentially a high-voltage integrated circuit wafer fab, to augment our power semiconductor wafer needs. However, the capabilities and capacity that GMCH will make available to us [in the Kokomo, IN fab] can address our potential growth needs beyond the capacity of the Clare fab, which may provide us great operational benefits in the US," commented Uzi Sasson, president of IXYS Corporation.

IXYS was founded originally as a fabless power semiconductor company, with global foundry relationships with selected world class semiconductor manufacturers. However, to create and retain proprietary technologies, IXYS developed its own in-house capabilities. IXYS owns and operates wafer fab facilities for its highly proprietary products in Germany, the UK, and the US. As the demand has been increasing for IXYS’ specialized products, it has been IXYS’ strategy to increase its internal and external wafer fab capacities.

IXYS initially was selected by GM’s Delco division in 1990 to develop the specialized power semiconductors for the EV1 electric car, for manufacturing at the Kokomo, IN wafer fab.

"It is our long-term strategy to penetrate the growing opportunities in the automotive market with GMCH for a wide range of our power semiconductors, including our power modules. The proven manufacturing and technical skills of the GMCH team in Kokomo will enable us to expand our capacity rapidly, to improve our domestic supply chain, and to serve our worldwide customers with cost effective, high quality ‘made in the USA’ products," commented Dr. Nathan Zommer, founder and CEO of IXYS Corporation.

General Motors Components Holdings, LLC is a wholly owned subsidiary of General Motors. Its Kokomo Operations Electronics Manufacturing Center consists of Kokomo Semiconductors, Kokomo Thick-Film Printing and Kokomo Electronics Assembly. In 2010, the GMCH Kokomo Operations began making its manufacturing capabilities available to customers beyond Delphi and General Motors. Currently, this plant employs over a thousand people at a facility with over two million square feet of manufacturing space. It produces semiconductors, engine and transmission control modules, crash sensing and diagnostics modules, pressure sensors for engine management and occupant detection, body computer modules and power electronics modules primarily for the automotive industry. To learn more about GMCH Kokomo, click here: www.kokomogmch.com

IXYS Corporation develops technology-driven products to improve energy conversion efficiency, generate clean energy, improve automation, and provide advanced products for the transportation, medical and telecommunications industries. Additional information may be obtained by visiting IXYS’ website at http://www.ixys.com, or by contacting the company directly.

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