Soitec and Sumitomo Electric Sign Smart Cut™ Licensing Agreement

       Soitec and Sumitomo Electric Sign Smart Cut™ Licensing Agreement

Major step in joint partnership to develop market of GaN substrates for
high-performance LED lighting applications

PR Newswire

BERNIN, France and OSAKA, Japan, February 21, 2013

BERNIN, France and OSAKA, Japan, February 21, 2013 /PRNewswire/ --

Soitec (Euronext), a world leader in generating and manufacturing
revolutionary semiconductor materials for the electronics and energy
industries, and Sumitomo Electric Industries, Ltd., a leading worldwide
provider of compound semiconductor materials, have signed a licensing and
technology-transfer agreement under which Sumitomo Electric will use Soitec's
proprietary Smart Cut™ technology to manufacture engineered gallium nitride
(GaN) substrates. This announcement is a key step in the ongoing strategic
alliance, launched in December 2010 to leverage Sumitomo Electric's expertise
in materials technology and Soitec's unique Smart Cut layer-transfer
technology to develop the global market for GaN substrates used in
high-performance light-emitting diode (LED) lighting applications.

The joint development program between Soitec and Sumitomo Electric already
successfully demonstrated the capability to produce four- and six-inch
engineered GaN substrates in a pilot production environment. High-quality,
ultra-thin layers of GaN have been repeatedly transferred from a single source
wafer onto multiple substrates developed by Sumitomo Electric. The engineered
wafers have exhibited high functionality at a low production cost. Having
proven the effectiveness of the technology- transfer process, Sumitomo
Electric will now industrialize the product and invest in Smart Cut
technology.

"Today's announcement represents a very important step in the material roadmap
for the compound semiconductor market, and a first step in our strategy," said
Frédéric Dupont, vice president of Soitec's Specialty Electronics Business
Unit. "This is the first licensing agreement of our Smart Cut technology to
leverage a reusable, expensive base material to bring an economically viable
process to this field. Sumitomo Electric's proven track record in innovative
materials development and their in-house manufacturing expertise are key
assets in developing the most cost-effective substrate material for
high-quality LEDs."

Yoshiki Miura, general manager of the Compound Semiconductor Materials
Division at Sumitomo Electric, said, "By combining the two innovative
technologies - Soitec's Smart Cut technology and our high-quality,
large-diameter, free-standing GaN substrates - we are able to offer a
high-value proposition to our LED customers. Soitec's unique material-transfer
technology enables the reuse of GaN wafers several times, achieving a
substantial reduction in the cost of high-quality GaN materials to serve
high-volume applications."

Soitec' s Smart Cut technology has been developed in collaboration with the
CEA-Leti of France, one of the world's premier microelectronics research
laboratories. It uses both implantation of light ions and wafer bonding to
respectively define and transfer ultra-thin, single-crystal layers from one
substrate to another. It works like an atomic scalpel, allowing active layers
to be managed independently from the supporting mechanical substrate. The
technology enables the development of new families of standard and custom
engineered wafers. It was made viable for high-volume commercial production by
Soitec, and is now protected by more than 3,000 Soitec-owned or controlled
patents worldwide. Today, Soitec leverages the Smart Cut technology to
manufacture engineered wafers for the world's leading chipmakers, and holds
exclusive rights to use and license this technology to third-party materials
and process suppliers.

About Sumitomo Electric Industries, Ltd.:

Sumitomo Electric Industries, Ltd. designs, manufactures and sells a wide
range of products from optical fibers, cables and components to electronic
devices and automotive parts. Through effective research and diversification,
Sumitomo Electric has become one of the world's leading companies in the
information and communication technology field. Drawing on its world-class
research and manufacturing capabilities, Sumitomo Electric continues to expand
and strengthen its portfolio of optical products while maintaining
industry-leading levels of reliability. The company operates in more than 30
countries with over 200,000 employees. Sumitomo Electric reported group net
sales of $25 billion for the fiscal year ended March 2012. For more
information about Sumitomo Electric, visit the web site at
http://global-sei.com/.

Contact:
Sumitomo Electric Industries, Ltd. (Public Relations Department)
Tel: +81 6 6220 4119 (Osaka)

E-mail: web@info.sei.co.jp

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™, Smart Stacking™ and Concentrix™, 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 Media Contacts
(trade press)
Camille Darnaud-Dufour
+33(0)6-79-49-51-43
camille.darnaud-dufour@soitec.com

(business press)
Marylen Schmidt
+33(0)4-76-92-87-83
marylen.schmidt@soitec.com
Investor Relations
Olivier Brice
+33(0)4-76-92-93-80
olivier.brice@soitec.com

SOURCE Soitec and Sumitomo Electric Industries, Ltd.