Decision by the Federal Cabinet with negative consequences for semiconductor production in Germany

Dortmund, November 9, 2022: In its meeting today, the German Federal Cabinet prohibited the sale of the Elmos wafer fab to Silex Microsystems AB. Due to the prohibition, the sale of the wafer fab cannot be completed.

The companies involved, Elmos and Silex, regret this decision. The transfer of new micromechanics technologies (MEMS) from Sweden and significant investments in the Dortmund location would have strengthened semiconductor production in Germany.

Silex filed the planned transaction with the Federal Ministry for Economic Affairs and Climate Action in January 2022. Since then, Silex and Elmos have been in close contact with representatives of the Ministry. After an intense review process lasting about 10 months, the Federal Ministry for Economic Affairs and Climate Action indicated to the parties involved an approval subject to conditions and submitted a draft version of the approval.

The prohibition that has now been announced was decided upon immediately before the end of the review period and without granting Silex and Elmos the required hearing.

Elmos will carefully analyze the decision received, also with regard to whether there is a material violation of the parties' rights, and decide whether to take legal action.

Contact
Elmos Semiconductor SE
Ralf Hoppe, Head of Investor Relations & Public Relations
Phone: +49-231‐7549‐7000
Email: invest[at]elmos.com

About Elmos
Elmos develops, produces and markets semiconductors, primarily for use in the automotive industry. Our components communicate, measure, regulate and control safety, comfort, powertrain and network functions. For over 30 years, Elmos innovations have been bringing new functions to life and making mobility worldwide safer, more comfortable and more energy efficient. With our solutions we are already the worldwide #1 in applications with great future potential, such as ultrasonic distance measurement, ambient light and intuitive HMI.

Notice
This release contains forward-looking statements that are based on assumptions and estimates made by the Elmos management. Even though we assume the underlying expectations of the forward-looking statements to be realistic, we cannot guarantee the expectations will prove right. The assumptions may carry risks and uncertainties, and as a result actual events may differ materially from the forward-looking statements. Among the factors that could cause such differences are changes in general economic and business conditions, fluctuations of exchange rates and interest rates, the introduction of competing products, lack of acceptance of new products, and changes in business strategy. Elmos neither intends nor assumes any obligation to update its statements with respect to future events.

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