News | April 25, 2001

Walsin Lihwa Chooses MEMSCAP In Multimillion Dollar Partnership For MEMS Design And Production

Comprehensive Infrastructure Provides High-Volume Funnel for MEMS-based Wireless Products

Walsin Lihwa Corporation and MEMSCAP, S.A. (Euronext: MEMS) today announced a multimillion-dollar strategic agreement that will offer wireless equipment designers a full concept-to-manufacture chain for low-cost MEMS-based product designs. The ten-year partnership will also establish product development programs that will push the capabilities of RF MEMS components and modules, and related fabrication technology, for emerging commercial applications.

Terms of Agreement
Under the terms of the proposed agreement, Walsin will license MEMSCAP's RF MEMS component designs, manufacturing know-how and MEMS design software. This technology transfer will enable Walsin to offer high-yield fabrication of RF MEMS components for such applications as 3G mobile phones, wireless local loop networks, wireless LANs and other emerging applications such as tunable antennae.

Industry and Management Comment
"This is a significant agreement for both the communications industry and MEMS technology development," said Marlene Bourne, MEMS industry analyst at Cahners In-Stat Group, a Scottsdale, Arizona-based market research firm. "Partnerships such as this are key to establishing an infrastructure that can not only fulfill the tremendous potential of RF MEMS, but assist in the continued maturing of MEMS as an industry."

"As a major player in RF chip manufacture, Walsin foresees tremendous growth potential in MEMS components for the communications industry, and the company intends to have a significant global presence in this market," said Yu-Lon Chiao, Chairman, Walsin Lihwa Corporation. "MEMSCAP, with its broad-based MEMS design expertise, strong IP portfolio and MEMS manufacturing know-how, offers us the substance and track record we need to move into the wireless MEMS business rapidly and reliably."

"MEMSCAP is committed to providing its customers with the resources and capacity they need to reap the benefits of RF MEMS-based product," said Jean-Michel Karam, president and CEO of MEMSCAP, S.A. "Walsin is a world leader in communications component fabrication. To have them be our partner in MEMS fabrication and packaging will enable us to generate substantial product volumes in the fast-growing communications marketplace."

Agreement Details
Walsin and MEMSCAP will target selected major accounts to provide a complete value chain for specific markets. Walsin will focus on fabrication of RF components including inductors, switches and variable capacitors, using MEMSCAP's patented Above-IC technology and membrane core technology.

Walsin will establish a complete RF MEMS component design environment based on MEMSCAP's MEMS Pro™, MEMS Xplorer™ and ANSYS software as a computer-aided design (CAD) platform for streamlined product development. MEMSCAP will transfer to Walsin its membrane core technology and Above-IC technology. Walsin and MEMSCAP will collaborate on characterization and optimization of all their RF MEMS modules for emerging applications.

Benefits of RF MEMS
Through miniaturization of components, new materials, and reduction of stand-alone circuit board components, RF MEMS offer the ability to provide higher levels of integration at lower costs for mobile and fixed wireless devices, especially for multi-band mobile phones. RF MEMS also help cut power consumption, a critical feature for next-generation mobile equipment.
Analysts project significant growth for RF MEMS. New Jersey research firm Insight Research Corporation expects the market for RF MEMS wireless local loop components to grow to $160 million by 2002 as the technology replaces discrete components. RF MEMS for wireless LANs may reach as much as $1.3 billion, according to the Boston-based Yankee Group. Deployment of GPS systems for mobile phones, pagers and PDAs is expected to create an even larger demand for the technology.

About Walsin Lihwa Corporation
Walsin Lihwa Corporation is a leading manufacturer and provider of power and telecommunication cable. Walsin Lihwa is making every effort to expand its business into the field of optical communication and to become the leader in providing all-optical network subsystem and services, including active/ passive optical components, microelectromechanical systems (MEMS), precision molding design, microminiaturization and microsystem integration. More information can be obtained at http://www.walsin.com.tw./

About MEMSCAP
MEMSCAP, the Telecom MEMS Company™, is an innovative provider of micro-electro-mechanical systems (MEMS)-based solutions for the design, development and manufacture of telecommunications products. MEMSCAP solutions include components, component designs (IP), and CAD design tools and related services. MEMSCAP customers include Fortune 500 businesses, major research institutes and universities. The company's shares are traded on Euronext under the ticker symbol MEMS. More information on the company's products and services can be obtained at http://www.memscap.com.

Source: Walsin Lihwa Corporation