Conexant Secures Guaranteed Foundry Capacity for Gallium Arsenide - GaAs - Semiconductor Devices.

Business Editors/High Tech Writers

NEWPORT BEACH, Calif.--(BUSINESS WIRE)--April 13, 2000

Agreement With Advanced Wireless Semiconductor Co. (AWSC) In Taiwan

Further Enhances Conexant's Position as the World's Largest Supplier Of GaAs HBT Devices for Wireless Communications and Optical Networking 

Products

Conexant Systems Inc. (Nasdaq:CNXT) Thursday announced that it has signed a multi-year agreement with Advanced Wireless Semiconductor Co. (AWSC) that guarantees the company capacity for an additional 30,000 GaAs heterojunction bipolar transistor (HBT) wafer starts annually.

Production will commence in the fourth calendar quarter of this year, giving Conexant access to at least 30 percent more capacity for a total of more than 125,000 wafer starts annually, including both internal and external resources. This compares with 15,000 annual wafer starts just one year ago.

Located in the Tainan Science-Based Industrial Park in South Taiwan, AWSC is one of the world's first foundry companies dedicated to the manufacturing of high-quality GaAs devices.

"In addition to increasing our own internal GaAs manufacturing capacity five-fold during the past year, Conexant has been searching for a foundry partner with expertise in this highly specialized process technology," said Terry Ellis, senior vice president of operations for Conexant. "This agreement gives us access to guaranteed additional capacity to address accelerating demand for GaAs HBT devices, in support of our two fastest growing divisions: wireless communications and network access."

GaAs HBT is the technology of choice for a variety of wireless communications devices, including power amplifiers for digital cellular handset and third-generation (3G) wireless voice and data products, and fiber-optic transceivers for Internet infrastructure equipment.

About AWSC

Advanced Wireless Semiconductor Company (AWSC) is a low-cost GaAs HBT foundry company that uses mainstream, cost-effective GaAs manufacturing process technology, optimal process equipment, device layout and material structure for wireless power applications. The company's goal is to provide the highest-quality, lowest-cost GaAs HBT foundry services available for wireless module manufacturers and fabless design houses. AWSC is located at Tainan Science-based Industrial Park in south Taiwan. Taiwan has established strong Silicon Foundry experience and infrastructure. AWSC's facility has 57,000 ft2 with class 100 clean room of 9,000 ft2, and 6,500 ft2 of class 10K clean room for backside and testing.

About Conexant Systems

With revenues of approximately $1.5 billion, Conexant is the world's largest independent company focused exclusively on providing semiconductor solutions for communications electronics. With more than 30 years of experience in developing communications technology, the company draws upon its expertise in mixed-signal processing to deliver integrated systems and semiconductor products for a broad range of communications applications. These products facilitate communications worldwide through wireline voice and data communications networks, cordless and cellular wireless telephony systems, personal imaging devices and equipment, and emerging cable and wireless broadband communications networks. The company aligns its business into five product platforms: Network Access, Wireless Communications, Digital Infotainment, Personal Imaging, and Personal Computing. Conexant is a member of the S&P 500 and Nasdaq-100 Indices. For more information, visit Conexant at www.conexant.com.

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