Slides
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Powering the future Sensing the real world Joerg Doblaski CTO Ready for what’s next Luigi Di Capua VP Product Marketing Rudi De Winter CEO Introducing the team today 2
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Expansion for what’s next Financial overview Damien Macq COO The next level of integration Alba Morganti CFO Volker Herbig VP Business Unit Microsystems Introducing the team today 3
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Playing to our strengths 4 Ready for what’s next Megatrends Demand is there Right capacity in place The big picture Investor Day 2025
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5 Megatrends Innovation with purpose − Solutions to fight global warming and mitigate climate change − Transforming healthcare in aging populations Technology trends that change the world − Smart everywhere − The age of AI Investor Day 2025
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6 Playing to our strengths Broad and unique combination of capabilities High degree of flexibility Robust supply chain that can be trusted Focus on three strategic technology pillars Investor Day 2025
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7 Playing to our strengths X-FAB’s three strategic technology pillars Investor Day 2025 The next level of integration Continuous minimization of form factor, smart integration, and lower cost Sensing the real world Smart sensors everywhere: automotive, medical, industrial automation, and consumer Powering the future More efficiency for e-power generation, conversion, distribution, and storage
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8 Demand is there Investor Day 2025 Megatrends drive demand across all end markets Sole source supplier for most products and high level of customer stickiness Many exciting opportunities in the pipeline Short-term headwinds due to lingering uncertainties, last- minute ordering behavior and ongoing inventory corrections
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9 Right capacity in place Completed large-scale capacity expansion Capacity aligned with current and future demand − Well positioned to grow and to develop new business Further efficiency improvements through AI and automation Investor Day 2025
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10 The big picture Strategic importance of semiconductors remains Geopolitics − Drive for localization – semiconductor industry remains global − Geopolitical tensions – X-FAB as European company is neutrally positioned − Tariffs – manufacturing presence in US China as important region Investor Day 2025
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11 China as important region Collaboration and innovation for sustained success in China Investor Day 2025 The Chinese semiconductor landscape is different − Large fabless market, no IDMs − The cooperation vs. the contract manufacturing model High level of interest in X-FAB’s specialty technologies − High barrier to entry − Continuous innovation to keep ahead of competition
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12 X-FAB is a technology partner Clear differentiation between cooperation model and contract manufacturing model Investor Day 2025 IC design Design IP development IC wafer manufacturing IC assembly & test IC sales Process technology development Specialty foundry Customer Specialty foundry Customer Owner of process technology and design IP (IDM or foundry) Customer Contract foundry Customer Cooperation model Contract manufacturing Foundry is provider of fab capacity Foundry is development and manufacturing partner Process transfer
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13 Playing to our strengths X-FAB’s three strategic technology pillars Investor Day 2025 The next level of integration Continuous minimization of form factor, smart integration, and lower cost Sensing the real world Smart sensors everywhere: automotive, medical, industrial automation, and consumer Powering the future More efficiency for e-power generation, conversion, distribution, and storage
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Megatrends › Electrification of everything 17 Powering the future Our technologies enable the electrification of everything. Investor Day 2025 Key market drivers › Electrification of mobility › Renewable energy › Artificial Intelligence X-FAB’s technology › Smart power BCD-on-SOI › Efficient high power with SiC & GaN Smart power BCD-on-SOI
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Smart power BCD - on - SOI › Ideal solution for automotive, industrial, and medical applications › Ease of design due to built-in process robustness › Fulfils most challenging reliability requirements › Smaller product footprint and better performance compared to bulk CMOS 18 Powering the future Foundry leadership in BCD-on-SOI X-FAB Investor Day 2025
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Bulk CMOS vs. BCD-on-SOI ESD & EMI issues Leakage spacing unwanted coupling Deep well implants for isolation needed
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Bulk CMOS vs. BCD-on-SOI BCD-on-SOI No unwanted coupling Less spacing = smaller chips Robust ESD & EMILowest leakage
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BCD- on-SOI 21 Die size shrink potential X-FAB Investor Day 2025 -45% Bulk CMOS 1.8 x dies per wafer › Smart motor drivers › Smart LED driver › Battery management systems
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› Smart motor drivers › Smart LED driver › Battery management systems 22 Applications enabled by BCD-on-SOI X-FAB Investor Day 2025 › Gate driver › Power conversion › Industrial test equipment › Industrial inkjet printer › Hearing aids › Cochlear implants › Pacemaker › MEMS speakers › Medical ultrasound Battery management systems
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6,2 25,6 2024 2029 Battery energy storage system market (USD billion) 23 Battery Management System (BMS) EV penetration and battery energy storage drive the growth of BMS ICs Investor Day 2025 0% 25% 50% 75% 100% 2025 2027 2029 2031 2033 2035 Powertrain composition ratio EV ICE Most cars need BMS 12-20 BMS chips/BEV 26.9% CAGR of 2024-2029 Source: Marklines.com, marketsandmarkets.com
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24 No EV or battery storage without BMS ICs cell module packVW ID.4 77 kWh of usable energy 350V battery Main functions: › Battery protection: to prevent operation outside its safe operating area › Battery optimization: cell balancing to improve battery life and capacity 1 lithium ion 3.65V 24 cells per module 12 modules per pack 1 BMS per module 12 BMS per car Sources: Volkswagen, LG ChemInvestor Day 2025
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25 No EV or battery storage without BMS ICs Investor Day 2025 Blackhillock battery storage 600 MWh
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26 We support the leaders in BMS ICs About 10% market share for BMS in 2024, serving major EV car makers Investor Day 2025 2016 20252020 8-cell BMS 16-cell BMS 18-cell BMS 24-cell BMS 13-cell BMS 17-cell BMS 24-cell BMS 26-cell BMS 20242022 2023
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27 BCD-on-SOI revenues drive growth Investor Day 2025 › First BCD-on-SOI prototypes in 2012 › Fast adoption across automotive, industrial, and medical applications › 14% of 2024 revenue › Major growth driver for future volume 0 50 100 150 200 250 300 350 2024 2030 (Est.) Revenue BCD-on-SOI (M$) x2.5
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Megatrends › Electrification of everything 28 Powering the future Our technologies enable the electrification of everything. Investor Day 2025 Key market drivers › Electrification of mobility › Renewable energy › Artificial Intelligence X-FAB’s technology › Smart power BCD-on-SOI › Efficient high power with SiC & GaN Efficient high power with SiC & GaN
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› Foundry leadership in SiC and GaN › Higher power, lower losses, better efficiency by SiC and GaN adoption › Unique co-creation foundry model enabling short time-to-market › Ideal solutions for electric vehicles, infrastructure, and data center requirements 29 Powering the future Leading foundry in SiC and GaN Investor Day 2025 Power efficiency with SiC & GaN
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Datacenter power demand 415 TWh A fast transition to renewables and innovation in power efficiency are required! 2024 2030 TWh 945 Investor Day 2025 30 Source: IEA, United States Department of Energy
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31 How to get to sustainable datacenters? Investor Day 2025 SiC SiC SiC GaN SiC GaN Usable electrical power Lower losses: conversion, distribution, cooling SiC and GaN enable more efficient power devices with better performance › Key parameter to reduce losses: On-Resistance (Ron) › Higher power › Faster switching › Smaller form factors
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32 Co-creation for SiC & GaN Investor Day 2025 Contract manufacturing Co-creation foundry • Scalable SiC & GaN foundry model with fast onboarding of customer-specific solutions • Fast and easy customization to match requirements in automotive, renewable energy, and data center markets • One process – one product, the default in SiC & GaN • No design support, focus on wafer manufacturing • Not easily scalable for a foundry SiC & GaN design wizard
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X-FAB customer adoption in SiC and GaN Application power Frequency 1 kHz 10 kHz 100 kHz 1 MHz 10 MHz 100 W 1 kW 10 kW 100 kW >1 MW GaN 200 V – 650 V SiC 650 V – 3,300 V Silicon IGBT & MOSFET Grid power Protection circuits Wind Data center Space EV charging 800 V EV Rail Solar Data center Medical sensors SiC GaN 400 V EV 400 V EV Investor Day 2025 33
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34 Leading performance with X-FAB SiC platforms Investor Day 2025 › Our Gen 3 SiC platform supports the smallest form factor planar SiC MOSFETs › Lowest on-resistance for highest efficiency 0,0 1,0 2,0 3,0 4,0 5,0 6,0 7,0 8,0Ron,sp (mOhm*cm2) 1,200 V SiC MOSFET benchmarking Gen2 SiC Platform Gen3 SiC Platform Competitor Planar SiC unipolar limit
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35 Sustainable datacenter supported by X-FAB Investor Day 2025 Source: Bloomberg “We have excellent supply chain partners: X-FAB with silicon carbide” Gene Sheridan Navitas CEO
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Smart power BCD - on - SOI › Our SiC, GaN, and BCD-on-SOI technologies address all power requirements: • from drive train to BMS, • from grid to datacenter, and • for many other automotive, industrial, and medical applications 36 Powering the future Investor Day 2025 Power efficiency with SiC & GaN
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40 Playing to our strengths X-FAB’s three strategic technology pillars The next level of integration Continuous minimization of form factor, smart integration, and lower cost Sensing the real world Smart sensors everywhere: automotive, medical, industrial automation, and consumer Powering the future More efficiency for e-power generation, conversion, distribution, and storage Investor Day 2025
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Megatrends › Electrification of everything › Digital healthcare › Smart cities, buildings, & manufacturing › Sustainable energy 41 Smart sensing everywhere We have developed a comprehensive technology portfolio for sensing applications. Investor Day 2025 Key market drivers › ADAS › Automation › Machine vision › Edge AI › Robotics › Biometrics X-FAB’s sensing technologies Established › CMOS › CMOS+MEMS Emerging › Photonics
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Share of production revenues in 2024 Sensors Stand-alone sensors interface chips others 42 Sensing the real world is our core business Revenue for sensing solutions accounted for half of X-FAB’s production revenues in 2024 Investor Day 2025 X-FAB’s sensing technologies Established › CMOS › CMOS+MEMS Emerging › Photonics Sensing solutions: 51%
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43 Sensing the real world Sensors are the bridge between the analog and digital world Investor Day 2025 Analog world Digital world Speed, acceleration ADAS, autonomous drivingTemperature Health monitoringForce, pressure Factory automation and robotization Color spectrum, Light intensity Seamless connection Technology portfolio for sensors solutions Sound Flow and gas concentration
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44 CMOS sensor technologies & solutions Investor Day 2025 Single Photon Avalanche Diodes (SPAD) Advanced Photodiodes & Optical Filter Providing broad photodiode portfolio with performance across UV, visible, and NIR light › Ambient light sensors › Position sensors › Health monitoring sensors Providing most comprehensive in-house SPAD technology for 3D sensing › Direct time-of-flight › Fluorescence lifetime imaging › Quantum cryptography Magnetic/Hall Sensors Offering hall sensor IPs with extensive analog and HV options, high digital cell density, compact ESD protection, and robustness › Current sensors › Position sensors › Rotation sensors CMOS Image Sensors Providing medical and industrial solutions for high-performance optical sensors at scale › Medical imaging › UV sensing › Industrial inspection
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45 CMOS sensor technologies & solutions Investor Day 2025 Advanced Photodiodes & Optical Filter Providing broad photodiode portfolio with performance across UV, visible, and NIR light › Ambient light sensors › Position sensors › Health monitoring sensors Ambient light sensors
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46 CMOS sensor technologies & solutions Investor Day 2025 Dental X - ray imaging CMOS Image Sensors Providing medical and industrial solutions for high-performance optical sensors at scale › Medical imaging › UV sensing › Industrial inspection
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47 CMOS sensor technologies & solutions Investor Day 2025 Wafer for dental X-ray Wafer for automotive CMOS Image Sensors Providing medical and industrial solutions for high-performance optical sensors at scale › Medical imaging › UV sensing › Industrial inspection
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Single Photon Avalanche Diodes (SPAD) Providing most comprehensive in-house SPAD technology for 3D sensing › Direct time-of-flight › Fluorescence lifetime imaging › Quantum cryptography 48 CMOS sensor technologies & solutions Investor Day 2025 Industrial drone
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Magnetic/Hall Sensors Offering hall sensor IPs with extensive analog and HV options, high digital cell density, compact ESD protection, and robustness › Current sensors › Position sensors › Rotation sensors 49 CMOS sensor technologies & solutions Investor Day 2025 Steer - by - wire
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50 MEMS sensor technologies & solutions Investor Day 2025 Inertial sensorsPressure sensors Providing piezo-resistive pressure sensor with absolute and relative pressure sensors as discrete or CMOS integrated › Tire-pressure monitoring system (TPMS) › Battery thermal management systems for gas and liquid monitoring › Emission control Providing robust acceleration sensors and gyroscopes. › Next generation TPMS › Airbag systems › Active suspension control Temperature sensors Providing thermopile-based temperature sensors for single point detection, and thermal imaging using a sensor array configuration. › Contactless thermometer › Sleep and fertility tracking in smart watches › Far infrared thermal sensors Gas and flow sensors Foundry for various gas and flow sensor- based technologies, ranging from metal oxide sensors, and thermal conductivity › Mass flow sensors › CO2, H2 sensors › Air intake sensors for various gases
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51 MEMS enabled solutions Investor Day 2025 Temperature sensors Gas sensors Inertial sensors Pressure sensors
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› We aim to become the European Foundry of choice for Silicon Photonics › We are enabling photonics manufacturing solutions › 3 technologies under development › Plan to start mass production in 2028 52 Silicon Photonics New emerging technology for sensing Investor Day 2025
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Datacom, AI, telecom Optical transceivers Coherent optical transceivers Optical switches Optical interconnects 5G / 6G RF in base stations Quantum Quantum computing Quantum communications QKD Quantum cryptography Automotive LIDAR UWB photonics Enhanced radar Collision warning Lane assistant Parking assistant ADAS Optical interconnects Agrifood and food quality Remote sensing Hyperspectral sensing Toxin sensing Rahman spectroscopy LIDAR Robotics Inertial sensors Safety & surveillance Fiber interrogator Gas & particle sensing Industrial sensing DNA / protein sequencing Diagnostics Glucose monitoring Drug dose control SEPSIS monitoring Lab-on-chip Health care, wellness AR/VR Sensing 3D-imaging 53 Silicon Photonics: real work is ongoing Investor Day 2025 Customer projects in development 4% of our total prototyping revenue and 60 prototypes in 2024
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54 Today’s innovations and tomorrow’s possibilities Investor Day 2025 Medical ultrasound Embodied AI robots
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55 BCD-on-SOI for medical ultrasound Our BCD-on-SOI solutions are well suited for ultrasonic probe heads used for real-time medical imaging Investor Day 2025 BCD-on-SOI for medical ultrasound › For generation of the ultrasound: high voltage switching up to 200 V › Receiving the echo from body tissues: sensing of 1 µV -100 mV with excellent noise isolation › 180nm BCD-on-SOI, for single- chip transmit & receive › 110nm BCD-on SOI, for next- generation small form factor products Main applications › Gynecology › Cardiology › Vascular › Cancer › Obstetrics and pregnancy › Musculoskeletal › Abdominal › Urology
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56 Medical ultrasound: A successful business story About 25% of X-FAB’s medical revenue in 2025 (Est.) Investor Day 2025 2025 (Est.) 2030 (Est.) Revenue - Medical ultrasound (M$) ~2x › First 180nm BCD-on-SOI prototypes in 2012 › First 110nm BCD-on-SOI prototypes in 2025 › Customer base consists of medical OEMs and their major suppliers
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57 And a sustainable business Our 110nm BCD-on-SOI is enabling the next generation of medical ultrasound products Investor Day 2025
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58 AI will shape the future of robotics Embodied AI Investor Day 2025 Artificial intelligence systems that have a physical presence and interact directly with the real world through sensors and actuators
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59 AI robots – a high growth opportunity for X-FAB ~ 40 actuators Investor Day 2025 6 actuators 18 sensors 2 actuators 4 sensors 6 actuators 18 sensors 12 actuators 14 sensors Head Elbow Forearm Upper arm Hands Shoulder Waist & pelvis 2 actuators 6 sensors 4 actuators 8 sensors Sensors for camera vision Tesla Optimus Robot, Gen2 ~ 100 sensors Source: Morgan Stanley Research, Tesla
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60 Key takeaways Sensing the real world is our core business We continue to drive innovation in sensing technologies We are at the cutting edge of enabling the development of emerging trends Investor Day 2025
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64 Playing to our strengths X-FAB’s three strategic technology pillars The next level of integration Continuous minimization of form factor, smart integration, and lower cost Sensing the real world Smart sensors everywhere: automotive, medical, industrial automation, and consumer Powering the future More efficiency for e-power generation, conversion, distribution, and storage
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65 Advances in semiconductor technology Investor Day 2025 › Semiconductor technology is advancing on 2 tracks • “More Moore” • “More than Moore” › New playing field of integrating best-in-class features from both tracks has emerged • 3D system integration on wafers or substrates creating systems on chips (SoC) or system in package (SiP) › X-FAB has chosen to play in this area • Pull by existing and new X-FAB customers “more than Moore” “more Moore” Analog NVM Sensors Biochip Photonics Optics Interacting with people and environment 1.4 nm 10 nm 22 nm 45 nm 65 nm 90 nm 130 nm Information processing
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66 Wafer-level chip scale microsystems Investor Day 2025 › Wafer-level: instead of building and packaging each chip one by one, everything is done while the chips are still part of a wafer. • 3D integration of best-in-class elements › Chip scale: the final packaged device is almost the same size as the chip itself › Why it matters: • Smaller and thinner • Higher performance and lower power • Lower system cost • More reliable CMOS wafer TSV Cap wafers Sensors Pt / Au pads µFluidic layer InterposerLight sources Photo diodes Modulators TGV RDL Actuators
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› Introduction into semiconductor fabrication is a complex, painful process › Materials vary in their stages of introduction at X-FAB: • Mature: SiC, GaN, Au, Pt • Developing: InP, LNO, AlN , GaAs, Glass › Why it matters: • Enables breakthroughs in system performance Driving performance with novel materials 67Investor Day 2025 M e d i c a l C o n s u m e r 4 A u t o m o t i v e I n d u s t r i a l GaN SiC AlN InP GaAs CdTe GlassLNO Au LiDAR Radar Car inverter Headlights MRT Sensors Lighting Displays AR/VR Solar inverter Optical network 5G antennas Solar panels PCCT Inkjet US MEMS RF amplifier PiC On-chip laser Photo- diodes VCSELS (µ)LED VCSELS HEMTs RF filter VCSELS ComponentsApplications Materials
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EU pilot lines 68 Momentum for X-FAB microsystems EUR 730 million R&D RTO funding via EU Chip Act in APECS, in wafer level chip scale microsystems in Germany Investor Day 2025 APECS Advanced packaging and heterogeneous integration › › › › › › Outcomes › European capabilities in 3D integration in high volume › Support for startups, SMEs and large customers Outcomes › Demonstrators Technologies Technologies › 3D integration › Chiplet architectures › Heterogeneous integration › System-in-Package (SiP)
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69 X-FAB is developing supply chains Our proven business model enables continuous growth and long-term success in automotive, industrial, and medical markets High level of co- creation and customization Long lifetime Support Innovation Pricing Delivery schedule Quality commitments High flexibility in required quantities Technologies best suited for our core markets
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› Successful transitioning from 150mm MEMS to microsystems foundry • Novel material integration • Wafer level chip scale microsystems on - X-FAB CMOS - Alien (non-X-FAB) CMOS • 200mm MEMS › Why it matters: • 10x total addressable market increase (TAM) • More and different customers • More and different applications • Higher average selling price (ASP) 71 Tenfold growth in total addressable market Investor Day 2025 150mm MEMS Foundry CMOS + MEMS Foundry 200mm Microsystems Foundry 1996 2016 2025
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72 Strong revenue growth in microsystems 20% CAGR anticipated for next five years Investor Day 2025 20 40 60 80 100 120 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 MUSD › USD +100 million in 2025 › Strong pipeline to maintain 20% CAGR until 2030 and beyond › Catalyst for further X-FAB growth 20% CAGR
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73 Value-add is increasing CMOS ASP up to 4x Investor Day 2025 CMOS + MEMS System integration Heterogenous system integrationCMOS 1.5x CMOS CMOS CMOS CMOS CMOS CMOS CMOS 2x 4x
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74 Real-life examples of ASP increase Optical sensor Investor Day 2025 CMOS + MEMS System integration CMOS 1.3x CMOS CMOS 350 nm CMOS 350 nm CMOS 350 nm CMOS MEMS Package Dicing TSV MEMS 3.3x • Lower total bill of material cost • Higher performance • Smaller form factor CMOS + MEMS CMOS [reference] 2x CMOS 180 n m CMOS 180 nm CMOS Pt Layer Medical sensor • Smaller systems • Higher performance IF-Layer
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75 Significant growth opportunities Customer diversification Partners network Capex and process capability management NRE income growth Application diversification Expand into different high impact application areas Broaden the customer base to NA and AP Increase income through co-development services “It is still Day 1” Jeff Bezos Lab-in-fab Grow the lab-in- fab capabilities with RTOs
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Discrete Integrated Gen1 78 Wafer-level chip scale microsystem for infrared sensors Investor Day 2025 › Over the past 10 years, collaboration with our customer has led to breakthrough performance for contactless body temperature measurement. › Why it matters: • Enhanced performance with medical-grade resolution • Lowered system cost despite higher ASP • Significant reduction in size • Market expansion – addressing the large, untapped market of personal health on mobile devices
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Wafer-level chip scale microsystem for inkjet printheads 79 Convergence of innovations Investor Day 2025 180nm BCD-on-SOI MEMS integration ALN piezo actuator › Integration of X-FAB’s distinctive technologies (BCD-on-SOI, MEMS, µFluidic, innovative piezo actuator) to develop a wafer-level chip scale high- resolution inkjet print head is highly unique › Why it matters: • Enhanced resolution • Capable of printing everything on anything • Reduced system cost • Market expansion – targeting an untapped market for X-FAB Microfluidic systems
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Wafer-level chip scale microsystem for photon-counting computed tomography Investor Day 2025 80
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› Significant public investment in microsystems R&D across Europe creates business opportunities › The addressable market is ten times larger than the 150mm MEMS market and has substantially higher average selling prices (ASPs). › Projected compound annual growth rate (CAGR) of 20% over the next five years. › X-FAB has an early mover advantage. › Robust profitability has been achieved. › Serving purpose-generating applications 81 Key takeaways Investor Day 2025 It is still Day 1 public investment addressable market annual growth rate early mover advantage Robust profitability purpose
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Expansion for what’s next Damien Macq, COO X-FAB Group 84
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85 X-FAB is developing supply chains Our proven business model enables continuous growth and long-term success in automotive, industrial, and medical markets Investor Day 2025 High level of co-creation and customization Long lifetime support Innovation Pricing Delivery schedule Quality commitments High flexibility in required quantities Technologies best suited for our core markets
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86 High flexibility in required quantities Investor Day 2025 Finalizing the USD 1 billion manufacturing expansions, reliable supply going forward • Site and process specific investment program completed with full capacity expansion gradually available in 2026 • Cleanroom expansions completed, equipment hooked-up, qualifications ongoing • Transformation leveraging equipment synergies (process flexibility) • Dual sourcing for large volumes (sites flexibility) Continuing operational performance improvements • Improvements through automation • Active legacy FAB and process management to meet the demand
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87 Solid growth guiding our investments Investor Day 2025 180-110nm Microsystems Photonics GaN SiC Powering Sensing Miniaturization Kuching Corbeil Erfurt Itzehoe Corbeil Erfurt Kuching Dresden Lubbock $ $ $ $ $ $ $ $ $ $ $$ $ $ $ $ $ $ $ $ $
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88 2023-2025 capacity expansion Overview of the capex program 2023-2025 Lubbock, USA Dresden, Germany Kuching, Malaysia Corbeil-Essonnes, France Itzehoe, Germany Erfurt, Germany 100 M$ 60 M$ CMOS 600 M$ CMOS/GaN 180 M$ 5 M$ 55 M$ CMOS SiC 1 B$ Total expansion capex Microsystems Microsystems
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89 2023-2025 capacity expansion Overview of the capacity expansion program 2023-2025: installed tools Lubbock, USA Dresden, Germany Kuching, Malaysia Corbeil-Essonnes, France Itzehoe, Germany Erfurt, Germany +7k WOPM SiC +1k WOPM CMOS +10k WOPM CMOS/GaN +12.5k WOPM Microsystems +3.5k WOPM +3.5k WOPM CMOS SiC Microsystems WOPM = wafer out per monthTotal expansion, available Q4’26
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90 2023-2025 capacity expansion Overview of the capacity expansion program 2023-2025 Lubbock, USA Dresden, Germany Kuching, Malaysia Corbeil-Essonnes, France Itzehoe, Germany Erfurt, Germany +4.5k WOPM +1k WOPM + GaN +12.5k WOPM +3.5k WOPM +6.8k WOPM +8k WOPM +3.1k WOPM Total expansion, available Q4’26 Production capacity in Q4’25 +1k WOPM WOPM = wafer out per month CMOS CMOS/GaNMicrosystems CMOS SiC Microsystems
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91 X-FAB Sarawak Factory expansion complete with the addition of 6,000 sqm of cleanroom › Two years from ground up to first production lots › All tools moved in and hooked-up › Cleanroom space ready for 50k WOPM › Flexibility: dual-source capability with Dresden (350nm) and France (180nm), and on site between 350/180/110nm Investor Day 2025
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92 X-FAB Sarawak Tool installation completed, qualification end of 2025 Investor Day 2025 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0 20 40 60 80 100 120 140 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Tool introduction Malaysia In Production Plan Actual
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93 X-FAB France Transformation accomplished: from 0 to >95% of core technologies › Completed transformation and capacity increase during allocation › 110nm BCD-on-SOI in production, photonics is in development › Fab automation remains a focus › Flexibility: dual source EU-Asia (Corbeil-Kuching) for 180nm technology Investor Day 2025
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94 X-FAB France Tool qualification complete by end of 2025 Investor Day 2025 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0 20 40 60 80 100 120 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Tool introduction France In Production Plan Actual Production conflicting with qualifications Back on track!
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95 Capacity – 180nm/110nm Investor Day 2025 Status expansion program 2023-2025 › Sites: Kuching and Corbeil-Essonnes › Expansion capex: USD 780 million • Equipment installed › Fully available by: Q3 2026 › Capacity increase versus Q4 2022: +170% › Revenue contribution FC in 2025: 43% 0 100 200 300 400 500 2022 2023 2024 2025 2026 2027 thousands 180/110nm wafer out capacity per year
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96 X-FAB Erfurt & Itzehoe Transformation towards microsystems offering in 200mm is ongoing › Additional cleanroom within microsystems building › MEMS migration to 200mm › Executing end-of-life 0.6µm CMOS, completion in H1 2027 › Enhanced capabilities for medical and industrial Investor Day 2025
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97 Capacity – Microsystems Investor Day 2025 Status expansion program 2023-2025 › Site: Erfurt › Total capex: USD 55 million › Capacity increase: +60% › Fully available by: Q1 2026 › Revenue contribution FC 2025: 12% › Additional expansion driven by customer-specific projects 0 50 100 150 200 2022 2023 2024 2025 2026 2027 thousands Microsystems wafer out capacity per year
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98 X-FAB Texas Transformation is ongoing, expanding the offering to SiC › Addition of specific tools enabling transition from CMOS to SiC › Leading SiC foundry in the world and the only SiC foundry in the USA › Launched third generation SiC with leading-edge performance Investor Day 2025
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99 Capacity – Silicon carbide Investor Day 2025 Status expansion program 2023-2025 › Capex spent: USD 100 million • SiC invest adjusted due to market dip › Prepared for strong growth without additional investment: • installed capacity: 10,000 wopm • current run rate: 3,000 wopm › US Chips Act available to support the expansion › Customer-specific development activities increasing year-on-year wopm = wafer out per month 0 20 40 60 80 100 120 140 2022 2023 2024 2025 2026 2027 thousands SiC wafer out capacity per year
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100 X-FAB Dresden Built up capacity for leading-edge GaN in 200mm › GaN capacity interchangeable with CMOS: ready for GaN ramp-up › Automatic material handling system installed › Continuous focus on fab automation Investor Day 2025
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101 Capacity – GaN Investor Day 2025 Status expansion program 2023-2025 › Invested to create flexibility between 350nm CMOS and GaN supply on 200mm wafers › Overall 10k → 11k wafer out per month, partly interchangeable to GaN › GaN to complement global power devices offering of X-FAB 0 5 10 15 20 25 2022 2023 2024 2025 2026 2027 thousands GaN wafer out capacity per year
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Level 1: Automated decision on material move Level 2: Automated equipment setup Level 3: Automated transport to equipment Level 4: Automated loading to equipment 102 Digital transformation: automation roadmap Investor Day 2025 › Status • All sites engaged in level 1 and 2 • Level 3 started in Kuching and Dresden • Executing automation roadmap per site › Benefits • More capacity from better assets utilization, improved quality and cost, less variability • Synergies across sites from standardization
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103 Ready for what’s next… Investor Day 2025 One billion dollar investment program is completed with full capacity available by end of 2026 › Investments aim for full operational capacity by 2026, ensuring readiness to meet future demands on the most demanded processes: BCD, especially BCD-on-SOI technologies, microsystems and wide bandgap (SiC, GaN) Ongoing specific investments in microsystems › Specific investments with customers’ contribution to enhance capabilities, reinforcing our specialty foundry leadership Focus on efficiency improvements › Efficiency improvements through automation and digital transformation are crucial to our strategy › Continued active management of capacity and legacy process
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Financial overview Alba Morganti, CFO X-FAB Group
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0 100 200 300 400 500 600 700 800 900 1.000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 107 Continued revenue growth across cycles in $m Revenue evolution Investor Day 2025
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108 Improved profitability across cycles 0% 5% 10% 15% 20% 25% 30% 0 200 400 600 800 1.000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025* Revenue EBITDA EBITDA margin Significant EBITDA margin improvement in downturn periods: 23% 2024 6% 2019 vs. in $m *midpoint of FY 2025 guidance Investor Day 2025
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109 Ready for what’s next Investor Day 2025 In-house capacity in place to grow our business to an annual revenue level of USD 1.2 billion Core business – automotive, industrial, and medical – stable at above 90% of total revenue Evolution of product mix − increasing share of high value-add CMOS, Microsystems, and SiC business
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CMOS 85% SiC 4% Microsystems 12% 110 Revenue by technologies Comprehensive set of specialty technologies tailored to the needs of X-FAB’s key end markets Investor Day 2025 Est. CAGR 2025-2030 180nm/110nm CMOS 8% Microsystems 20% SiC 20% ≥350nm CMOS flat Q2 2025
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111 Profitability drivers Top line growth Economies of scale Efficiency improvements through automation Cost control and reduced spending Investor Day 2025
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112 Strong operational leverage Investor Day 2025 Employee-related expenses - fixed & variable - 33% Material expenses - variable - 25% Cost of fixed assets - fixed & variable - 18% Depreciation & amortization - fixed - 15% Facility costs - fixed - 9% ~60% fixed FY 2024
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› Expansion projects complete › Low capex level in 2026 and the next few years: • Capex ratio of 10%, of which: − maintenance capex: 5% − capability capex: 5% • Thereafter return to normalized capex ratio of 15% of revenue • Additional capex funding possible via Chip Act and customer prepayment 113 Return to reduced capex Investor Day 2025 0 100 200 300 400 500 600 2017 2018 2019 2020 2021 2022 2023 2024 FC 2025 FC 2026 FC 2027 in m$ Capex evolution Capex 2023-2025 USD 1.1 bn* *total capex including USD 100 million of maintenance capex
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114 Capex financing Investor Day 2025 Contribution from operational cash flow USD 425m Credit lines USD 375m LTA prepayments USD 292m Financing structure 2023-2025 › Financing of USD 1.1 bn capex in the period of 2023-2025 fully secured • Use of only USD 375 million of credit lines from initially forecasted USD 550 million
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115 Financial liabilities Investor Day 2025 -1 -0,5 0 0,5 1 1,5 2 -300 -200 -100 0 100 200 300 400 500 600 700 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Net debt LTA* prepayments Net debt/EBITDA in m$ › Bank loans • Maturity of revolving credit facilities in 2026 and 2029 with an optional one-year extension to 2027 and 2030, respectively › Repayments of prepayments • Customer prepayments total USD 276 million (net) at the end of Q2 2025 • Majority will be repaid in the period between H2 2025 and 2027 *Long-term agreement Net debt and prepayments
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Revenue Costs Euro USD 116 Our business is naturally hedged Investor Day 2025 55% 37% Revenue and costs by currency FY 2024 › Business is naturally hedged through revenue and cost matching • No FX impact on EBITDA › Impact on financial result from the re-evaluation of Euro-denominated debt • Unrealized FX effect of USD -17 million (non-cash) in Q2 2025 • Risk is partially hedged via USD/Euro hedging contracts 59% 41%
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117 Financial targets Investor Day 2025 2025 guidance Long-term ambition Revenue USD 840-870 million high single-digit average growth across cycles EBITDA margin 24-27% >30% CAPEX USD 250 million 10-15% of revenue
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