Last updated on April 23, 2014 at 10:57 EDT

Soitec and Silian Enter Joint Development Agreement on Gallium Nitride Template Wafers to Enable More Efficient LED Production

July 9, 2012

BERNIN, France and CHONGQING, China, July 9, 2012 /PRNewswire/ –

Soitec (Euronext), a world leader in generating and manufacturing revolutionary
semiconductor materials for the electronics and energy industries, and Chongqing Silian
Optoelectronics Science & Technology Co., Ltd. (Silian), an established supplier of
materials, devices and systems for the lighting industry, have partnered to jointly
develop gallium nitride (GaN) template wafers using hydride vapor phase epitaxy (HVPE).
The resulting GaN template wafers present breakthrough cost savings in manufacturing LEDs.

The companies’ joint development agreement aims at validating the manufacturability
and enabling the commercialization of GaN template wafers using Silian’s sapphire
substrates and Soitec’s unique HVPE technology. The partner companies plan to begin
sampling GaN template wafers this year.

Chantal Arena, vice president and general manager of Soitec Phoenix Labs, where the
HVPE technology was developed, said, “Our strategy was to use production-proven silicon
epitaxy equipment features and add our innovative gallium source and delivery system to
create a high productivity HVPE equipment. We then successfully developed high growth rate
processes that combined with our low cost precursor leads to a more cost effective GaN
template than the ones produced by metal organic vapor phase epitaxy (MOVPE).”

“Silian is excited to work with Soitec and adopt its HVPE technology,” said David
Reid, COO of Silian. “With our extensive sapphire substrate manufacturing expansion
activities in China, we are very well positioned to take advantage of this opportunity and
offer these high quality templates in a cost effective manner to our sapphire substrate

“This development of HVPE technology introduces a revolutionary business model and
allows LED makers to free up as much as 60 percent of their MOVPE capacity. LED makers can
now focus on improving the more custom-designed layers that make up the light-emitting
part of an LED,” said Andre-Jacques Auberton-Herve, president and CEO of Soitec. “In
addition to this business opportunity, we are exploring the possibility of expanding our
cooperation with Silian into the field of LED lighting, leveraging Soitec’s expertise in
epitaxial growth developed by our Soitec Phoenix Labs subsidiary in Arizona.”

Chairman Xiaobo Xiang of China Silian Instruments Group, Silian’s holding company,
added, “Soitec and Silian have very attractive complementary technologies. Therefore, we
look forward to exploring with Soitec the mutual beneficial business opportunities offered
by the vast markets of materials, LEDs and lighting.”

About Silian

Chongqing Silian Optoelectronics Science & Technology Co., Ltd (Silian) was founded by
China Silian Instrument Group Co., Ltd for the development of LED industry. After the
acquisition of the Honeywell sapphire substrate business, Silian has become China’s first
enterprise with high quality large diameter sapphire substrate production and R&D
capabilities. Silian’s product range covers a full spectrum of the LED supply chain, from
world leading large diameter sapphire substrates, packaged LEDs, LED display screens, LED
lighting applications and smart lighting system control technology. Based on the core
technologies of sapphire substrates, LED lighting and a flexible manufacturing base,
Silian is the most complete and the largest semiconductor energy-efficient industrial base
in western China. Silian has a strong sales and distribution network, sub-manufacturing
plants and R&D centres located in China and North America. For more information,

About Soitec

Soitec is an international manufacturing company, a world leader in generating and
manufacturing revolutionary semiconductor materials at the frontier of the most exciting
energy and electronic challenges. Soitec’s products include substrates for
microelectronics (most notably SOI: Silicon-on-Insulator) and concentrator photovoltaic
systems (CPV). The company’s core technologies are Smart Cut(TM), Smart Stacking(TM) and
Concentrix(TM), as well as expertise in epitaxy. Applications include consumer and mobile
electronics, microelectronics-driven IT, telecommunications, automotive electronics,
lighting products and large-scale solar power plants. Soitec has manufacturing plants and
R&D centers in France, Singapore, Germany, and the United States. For more information,
visit: http://www.soitec.com.

        International and Chinese Media Contact for Silian
        Howard Huang
        (any time zone)

        International Media Contact
        Camille Darnaud-Dufour
        (any time zone)

        Investor Relations
        Olivier Brice

        French Media Contact
        Marie-Caroline Saro
        H&B Communication

SOURCE Soitec and Silian

Source: PR Newswire