November 23, 2005 – Siltronic AG, Munich, Germany, is expanding its 300mm wafer production in Germany by investing ~136 million euro (US$160.6 million) in its production sites at Burghausen in Bavaria and Freiberg in Saxony. Up to 225 new jobs will be created.

Of the investments planned, 60%, or 80 million Euro, will go to Burghausen, where capacity will be expanded by 60,000 wafers/month, from the present 75,000 wafers to 135,000 wafers/month. In Freiberg, capacity will be expanded from 150,000 wafers/month to 200,000 wafers/month.

“Worldwide demand for 300mm wafers is rising steadily. By concentrating on the production of wafers at this diameter, we’re right on track,” CEO Wilheim Sittenthaler said yesterday.

The investment program has the support of a company-related joint wage agreement adopted by the Executive Board of Siltronic, the central works council, the local works councils at the work sites, and the German Mining, Chemical and Energy Workers’ Union. This agreement provides for an extension of working hours from 37.5 to 39 without any additional pay, starting January 1 in Burghausen and Munich (Jan. 1, 2009 for Freiberg). Employees outside the agreed scale rate, managerial staff, and the Executive Board will be making an equivalent contribution in order to make the investments in Germany possible.