SAMSUNG ELECTRONICS AND SILTRONIC TO JOINTLY CONSTRUCT 300 MM WAFER FAB IN SINGAPORE

• Equal contributions
• USD 1 billion investment
• Start of production planned for mid 2008
• Design capacity of 300,000 wafers per month

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Semiconductor technology leader Samsung Electronics Co., Ltd., the
world leader in advanced semiconductor technology solutions, and
Siltronic AG, a division of Wacker Chemie AG and a global leader in
the market for ultra-pure silicon wafers, will jointly construct and
operate a 300 mm wafer fab. The JV, dubbed Siltronic Samsung Wafer
Pte. Ltd., supports the growing market demand as the industry-wide
shift to 300 mm fabrication rapidly increases.

Samsung Electronics’ Board of Directors and Siltronic’s Supervisory
Board approved the Joint Venture Agreement. The closing is expected
for end of August after having received certain approvals from
relevant authorities.

The new facility will be built in Singapore adjoining Siltronic’s
existing complex. Both parties will contribute equal amounts of
equity. Total investment for the joint undertaking will account for
USD 1 billion. The fab will be jointly operated by Samsung and
Siltronic.

Construction will start in August 2006 with production expected to
commence mid-2008. The JV is expected to reach 300,000 wafers per
month in capacity and 800 employees by 2010.

"A ‘first’ in the wafer industry, this joint venture involves the
collaboration of two technology leaders in their respective fields.
It is a milestone in respect to innovation, time to market and
efficiency in the whole industry," commented Siltronic CEO Dr.
Wilhelm Sittenthaler. Both parties enjoy significant benefits.
Samsung will secure stable supply of 300 mm wafers. "Samsung’s
advanced semiconductor technology and its position as a pioneer in
300 mm wafer-based semiconductor fabrication has provided new
technology solutions that have created wonders in the IT era", said
Dae-Sub Chi, Executive Vice President of Business Management at
Samsung Electronics’ Semiconductor Business. "Samsung looks forward
to further success with partners to meet the challenging demands of
the rapidly evolving IT industry and support our ultimate goal to
create future technologies and opportunities for further advances in
the industry."

Siltronic’s 100 percent shareholder Wacker Chemie AG will enter into
a long-term contract with the Joint Venture to ensure a stable supply
of hyperpure polycrystalline silicon, the starting material for the
production of silicon wafers.

The joint venture has won the support of Singapore’s Economic
Development Board.

"Singapore is pleased to host this USD 1 billion joint venture
between Samsung Electronics and Siltronic. This will be Singapore's
first ingot-pulling and 300 mm substrate fab and is a key addition to
our semiconductor industry. It also represents Siltronic's most
significant expansion to date, as well as Samsung Electronic's
expansion of its regional HQ to its first manufacturing investment in
Singapore" said Teo Ming Kian, Chairman of Singapore Economic
Development Board.

In response to the semiconductor industry’s continuously rising
demand for 300 mm wafers, Siltronic already decided in November 2005
to significantly expand production capacity at its wafer fabs in
Freiberg and Burghausen, Germany. Burghausen’s current 300 mm
capacity of 75,000 wafers per month will be increased 135,000 wafers
per month. Freiberg’s 150,000 wafers per month capacity will rise to
200,000 wafers. "Market demand for 300 mm wafers is expected to grow
by about 50 percent in 2006 and is as well expected to grow
substantially during the next years. The new Singapore fab and
expansion of our German fabs will help to meet strong demand,
particularly in Asia, and allows us to further strengthen our market
position" stated Sittenthaler.

About Samsung Electronics Samsung Electronics Co., Ltd. is a global
leader in semiconductor, telecommunication, digital media and digital
convergence technologies with 2005 parent company sales of USD 56.7
billion and net income of USD 7.5 billion. Employing approximately
128,000 people in over 120 offices in 57 countries, the company
consists of five main business units: Digital Appliance Business,
Digital Media Business, LCD Business, Semiconductor Business and
Telecommunication Network Business. Recognized as one of the fastest
growing global brands, Samsung Electronics is a leading producer of
digital TVs, memory chips, mobile phones, and TFT-LCDs. For more
information, please visit www.samsung.com

About Siltronic Siltronic is a global leader in the market for
ultra-pure silicon wafers and the partner of numerous leading chip
manufacturers. Siltronic develops and manufactures wafers with
diameters of up to 300 mm at production sites in Europe, Asia, Japan
and the United States. Silicon wafers form the heart of modern micro-
and nanoelectronics - for computers, mobile telephones, Internet, DVD
players, flat-panel displays, navigation systems, airbags, computer
tomography machines, aircraft control systems and many other
applications.

This press release contains forward-looking statements concerning
future developments, which are based on assumptions and estimates of
the management of Siltronic and Samsung. Although we believe that the
expectations underlying these forward-looking statements are
realistic, we cannot guarantee that they will prove to be correct.
These assumptions may harbor risks and uncertainties that could
ultimately produce the result that actual developments are
considerably different than the forward-looking statements. The
factors that could lead to such differences include, but are not
limited to, changes in the economic and business environment,
exchange rate and/or interest rate movements, the introduction of
competing products, inadequate acceptance of new products or services
and changes in the business strategy. Siltronic and Samsung neither
plans to update the forward-looking statements nor accepts any
obligation to do so.

end of announcement euro adhoc 14.07.2006 08:46:56
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ots Originaltext: Wacker Chemie AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
For more information, please contact:
WACKER/Siltronic
Christof Bachmair
Tel.: +49 89 6279-1830
E-Mail: christof.bachmair@wacker.com

Samsung
Sung Hae Park
Tel.: +82 31 209 7037
E-Mail: sunghae_park@samsung.com

Branche: Chemicals
ISIN: DE000WCH8881
WKN: WCH888
Index: CDAX, MDAX
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