Communicant Receives European Union Approval for Government Subsidies of $363 Million; Foundry Reaches Next Milestone in Funding Process.Business Editors & High-Tech Writers FRANKFURT (Oder), Germany--(BUSINESS WIRE)--Oct. 30, 2002 Communicant Semiconductor Technologies AG (Communicant), a premier European silicon germanium (SiGe) A semiconductor material made from silicon and germanium. Germanium is very similar to silicon, but when one layer is grown on top of the other to form the base of the transistor, the resulting transistor can switch faster and yield higher performance. foundry, announced it received approval from the European Union European Union (EU), name given since the ratification (Nov., 1993) of the Treaty of European Union, or Maastricht Treaty, to the European Community (EU) for federal and state government subsidies of $363 million in the form of cash grants and government loan guarantees. The subsidies are commensurate with the jobs Communicant will create at its headquarters and manufacturing site in Frankfurt (Oder). The EU approval also includes federal and state government guarantees on commercial loans. Communicant has already secured private equity of $325 million (April 8, 2002) in addition to the $363 million in government grants announced today. The approval of government loan guarantees by the EU is a key step in finalizing the debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay by a major banking consortium led by Commerzbank AG and the Gulf International Bank (GIB See NIST binary. ) for a $650 million debt facility. The total financing of $1.3 billion will complete the funding for Communicant's foundry. "The approval of these government subsidies and commercial loan guarantees is an indication of the importance the EU has placed on establishing a world-class wafer foundry for highly advanced communications products in Europe. Communicant's achievement of this major milestone in a difficult economic environment is a measure of our company and the outstanding technologies we offer," said Abbas Ourmazd, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Communicant. About Communicant Semiconductor Technologies: Communicant Semiconductor Technologies AG is the world's first communications-focused pure-play integrated circuits foundry serving the wireless, broadband and high-performance markets. It offers advanced modular SiGe:C BiCMOS, LDMOS LDMOS Laterally Diffused Metal Oxide Semiconductor LDMOS Lateral DMOS LDMOS Lightly-Doped Drain Metal-Oxide Semiconductor LDMOS Lateral Diffusion Mosfet and RF CMOS (Complementary Metal Oxide Semiconductor) Pronounced "c-moss." The most widely used integrated circuit design. It is found in almost every electronic product from handheld devices to mainframes. process technologies for demanding high-speed, low-power applications and System-on-Chip solutions. Communicant's $1.3 billion facility will be operational in 2Q 2004. Prototyping services will be available from 2Q 2003. Communicant is located in Frankfurt (Oder), 50 miles east of Berlin in the state of Brandenburg, Germany. More information about the company can be obtained through its Web site www.communicant.de. |
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