Welcome to Silex webcast on July 7th, 2026. Today's call will begin with a presentation from the company speakers, CEO Edvard Kälvesten and CFO Maria Engström. Following the presentation, we will open the floor for questions. If you would like to ask a question, please press star five on your telephone keypad to enter the queue. When it's your turn to speak, please press star six to unmute your microphone. I will now hand over the floor to CEO Edvard Kälvesten. Please go ahead. Thank you. Today we have announced that Silex has acquired a semiconductor fab in U.S., meaning that we are establishing our first U.S. manufacturing footprint. My name is Edvard Kälvesten, I'm the CEO, and I founded the company 26 years ago, and here also our CFO. My name is Maria Engström, and I'm, as Edvard said, the CFO of the company. What has happened? Today we have signed an agreement to acquire 200 mm fab. It's an old IC fab in Mountain Top in Pennsylvania, two and a half hours from New York Airport. You can see it on the picture here. This is according to our prospectus we disclosed at the IPO, where we said that we had an LOI, a letter of intent, and since then, we have finally negotiated and agreed on terms for that. It is structured as an asset purchase, so we don't buy the company, but it's an asset purchase, which includes the real property, the production facility, all infrastructure, and manufacturing equipment. It also includes that we will take over the employee at the fab, which at current stage is 130 very experienced semiconductor employees. The purchase price is a total of $40 million, $10 million at signing and $30 million at closing. The closing will take place at year-end 2027. For Silex, it means that we can build up the MEMS capacity and capabilities in parallel when onsemi ramps down their legacy products in the fab. This is the advantage with this long closing time, is that they have the time to finalize their production while we, in parallel, can ramp up our development. They continue to operate the fab, but we will be able, according to agreement, to both develop and produce products with their help in the fab during this one and a half year. Closing is subject to customary conditions and approvals from CFIUS, which is expected, or normally it takes three to six months to get this approval, according to our lawyers. This is a picture of the fab, as I said, in Mountain Top, and it looks like a normal IC fab and onsemi own this, and they have several fabs, and they are going now as all semiconductors, normal semiconductors are, they're going to smaller dimension and the next nodes, so they will transfer their existing products to other fabs. While for Silex, we are doing MEMS. This is perfect match because this is a very cost-efficient way to get that equipment and that facility, which would cost much more if you would build it and buy it from scratch. Our growth strategy, as communicated during the IPO, has been to continue to focus on key end markets, which is the, you probably remember them, it's the consumer, and it's the medical and life science. We have the telecom, and we have all type of defense and such, which we haven't been able to go into yet, but which will be unlocked now with this. Continue focus on key end markets. We continue to invest in innovation and capacity in Sweden. Sweden fab will continue to invest, in parallel to this big investment in U.S. As we said, the IPO unlocked some certain segments, which is defense, but also some infrastructure, which we couldn't reach, without the U.S. footprint. This footprint was a big milestone for Silex. That will be a big focus now for the next years. Also the next step will be to go from 8 in to next generation MEMS, which is 12 in, and that is planned now to be established in Sweden. There Silex has a leading MEMS foundry. The leading MEMS foundry. We want to be first on 12 in pure-play MEMS foundry, and that we think that would be a medium term would be good for that, and that's typically around 2030. That will be the next step after the U.S. expansion. Why is it important to be in U.S.? Many of our largest customers, we have 55% of our revenue today is U.S. dollar and U.S.-based. Many of these big customer we have, specifically the Mag7 companies, but also some other companies, have communicated to us it's extremely important for us to be in U.S. to be able to be part of the next generation MEMS. We have been able to have them as customers up to now because we are the largest MEMS foundry, and we have capabilities which nobody else has. Long term, this was a necessity. This local capacity, of course, it is fast response time and closer customer integration. But the most important is really that you are where your customer are, that they feel that we are in U.S. And that, of course, because of all geopolitical reasons we have nowadays, which can change in both directions. But we think that it will be very important to have fabs in U.S. long term because U.S. is our absolutely most important market. Acquiring a legacy integrated IC fab, as we are doing here now, is a very cost-efficient way. Typically, a MEMS fab has 80% standard equipment and 20% MEMS equipment. In this way, we get this 80% standard equipment, and then we will add MEMS equipment to this fab during the coming years. We have a complete MEMS fab exactly in Sweden. This fab in U.S. has the potential to be even bigger and much bigger than the Sweden fab long term if we do the necessary investments, if and when. Also an advantage with this fab in U.S. is the FX advantage with the currency exchange rate that we also have some cost in U.S. dollar. If you look into this fab, it is an 8 in or 200 mm semiconductor fabrication facility. It is the same wafer size as we have in the Sweden fab. The existing cleanroom, which is manufacturing the IC for onsemi, is 3,000 sq m. But it is easily added 12,000 sq m, which earlier has been cleanroom and usable for MEMS. That is where we will expand with further MEMS equipment to make a complete MEMS line. That will be managed during 2026- 2027, and hopefully being finished to 2028 for full speed production. Sweden fab has around 4,000 sq m. The first step in this is to having twice the cleanroom space of current Swedish fab. Typically 8,000 sq m. How it will work is that we will start to qualify and develop MEMS products already after the CFIUS approval during 2026- 2027, and then ramp up the production for a few products. And then that continuously will continue. As we have said before, in 2034, this fab will look similar to the Swedish fab in terms of capabilities, capacities, and financial numbers. Employees to be offered employment here is around 130 currently. And to this, we will add MEMS expertise trained in Sweden. We have hired now 25 employees, engineers in Sweden fab, which we will train coming year and being transferred continuously over to the U.S. fab over these years. Looking at the timeline and repeating that. We have this binding agreement signed now today. We gain access to the premises, and we will start to transfer some MEMS products. In 2027, we will continue to qualify new products and start up MEMS equipment. And in January 2028 or year end 2027, we will close this deal, and we gain ownership and take over everything. In terms of investments, the CapEx in 2026, including the purchase price of $40 million, it is around SEK 1 billion in 2026- 2027. And then we will invest around SEK 200 million per year up to 2030. And as a goal, we will reach break even on EBIT level in 2029- 2030. It will depend on product mix, exactly when it will be reached. In 2034, as I said before, we will reach the same financial numbers as we had in Sweden fab 2025, which meant a revenue of around SEK 1.4 billion and EBIT margin around 27% and adjusted 29%. This fab will be funded mainly through existing cash. You probably remember we raised SEK 1 billion in the IPO, but we also have a leasing line or a debt line available if needed. That was my presentation, I guess you might have some questions. We will now open for questions. If you'd like to ask a question, please press star five on your telephone keypad to enter the queue. When it's your turn to speak, please press star six to unmute your microphone. The first question comes from Erik Lindholm- Röjestål at SEB. Please go ahead. Yes. Hi, Edvard and Maria. Hope you can hear me well, congratulations on the deal here. A couple of questions from me. Just given how hot the semiconductor market is, significant bottlenecks in many areas, do you think that there is any risk to delays in terms of buying new equipment or risk that this expansion becomes more expensive than you have anticipated? I can start there, perhaps, and come back with another question. That's not expected. We have already started to discuss with the equipment supplier, we don't see that it will be later or more expensive than we have planned. Right. That's clear. Another question, just what feedback are you getting from customers on this transaction? Is there any customers that have committed to volumes already in the U.S.? I can't get into details on that, but I can say that it's very positive response. Already when we said this will happen, it was positive response. Our sales team is in discussions every day with existing and new customers about this opportunity to have their MEMS manufactured in this American site, which for some is very important. It is absolutely open up new possibilities. All right. Just expanding on that, perhaps. Will you look to move projects over from the Swedish fab to the U.S. fab? How do you plan to dimension the Swedish fab in light of this expansion? Typically, not. One or maximum two single programs will be moved. We are very careful not cannibalizing on the Sweden fab. We think it is business enough with new customers and new programs for the U.S. fab. That includes, just one to two projects that might be moved. Does that include one of the largest customers, perhaps? Yeah. Well, it could be so. Especially one large customer, which is growing out from the Sweden fab, which is a good solution. All right. Okay. Makes sense. Just a final question from me. When you said that you aim to reach break even here by 2029-2030, is it possible to say anything about the size of the anticipated losses prior to this? Any guidance there would be great. Thanks. No, we don't guide on that, actually. You maybe can do your own calculations. At the current stage, we don't guide on that. You know the number of employee and I think you have to do your extrapolations yourself today. Yeah. I'll do my own calculations. Excellent. Thanks. The next question comes from Simon Granath at SC ABG. Please go ahead. Simon Granath, please unmute your microphone. Oh, can you hear me now? Yes. Oh, sorry. Hi, Edvard and Maria. Congrats on signing the deal. Exciting stuff. On Erik's question, you mentioned positive feedback. May I ask which end market segment that you hear most positive feedback from? Thanks. It's generally, I can say that Mag7 companies, of course, they have been pushing this since day one. This is something I've communicated all the time. Also generally, tech companies are very interested in this because of geopolitical situation. That is important for them. Very good. May I ask you, do you expect to receive any grants from CHIPS Act, et c, given your investments? Maybe Maria can comment on that. We always look into grants and, of course, in this case also, there's nothing we can communicate right now. We're aware that there are grants available in the U.S., both federal and locally. We're always looking into this. Perfect. You mentioned that you have hired about 25 people in Sweden that are, as I understand, earmarked for the U.S. expansion. Do you expect to hire even more people in Sweden and then gradually transfer them, or is that enough, the 25 people? These 25 is engineers, and I think this is a good model to hire them, hire engineers in Sweden fab and train them here and then move them to U.S. I can see that it's coming more tranches of this. Yeah, I can see that it can happen. Okay. Just a final one from me. In your view, what are the key risks that you have identified pursuing this expansion? It's always a risk that a new location, a new fab, it's challenging for a company like Silex, being only in one site. Suddenly we have two sites to take care of. I think that's the main risk. A second site on a second continent. I think rather, it's a lot of opportunities you should look at. That is the big thing with this. I don't see so many risks, but more than we are a small company, even if we are 500 employees. It's a big challenge for us, but huge opportunities. That's very fair. Thanks for having my question, and looking forward discussing this further at the Q2 results. Thank you. The next question comes from Magnus Kruber at Nordea. Please go ahead. Magnus, please unmute your microphone. Hi, Magnus here at Nordea. Hi, Edvard. Hi, Maria. Hello. A couple of questions from me as well. Sorry, Edvard, can you repeat what you said about the revenue and margin specifically that you targeted for 2034? I think you said something, but my line broke up. Our target is that 2034, we will have the same revenue and the same margins as we had in Sweden fab, 2025. Okay, got it. Thank you very much. Then, break-even targets for 2029 and 2030. What level of revenue speed we required to get there? We don't share that. It depends on product mix and the type of customers. This is our goal to have EBIT break even on 2029 and 2030. Understood. Would you say, you have previously said that the gross margin at 80% required about 40% utilization in the fab. Is that something that you think will be achieved by those years? It doesn't apply perfectly on the U.S. fab because it's different. I don't know if you remember that, but it is standard semiconductor equipment we get in that fab, and that is quite a lot of standard semiconductor equipment, more than we have in the Sweden fab. We get them very cheap. It's a very cost-efficient way to get that type of equipment. I don't think you can translate that rule of thumb exactly to the U.S. fab as we have been using for the Sweden fab. Okay. Is that because they are somehow more efficient in their use of resources? Because gross profit, one is just accounting for material costs, right? Oh, yes. Understand. Okay. Now we have to think here. You were speaking about the gross margin one or? Yes, exactly right. Okay. The question was gross margin one. Okay. Can you repeat that question once more? Yeah, I think you previously said that a capacity utilization about 40% would be required to get to 80% gross margin one as a rule of thumb. No, I don't think we say that. That I don't recognize. I think for capacity utilization, we are more speaking about the EBIT levels. Okay. What would the rule of thumb be? 40% utilization to get to what risk level? I think we need to get back to these numbers. We can have a separate discussion about that. I think we need to get back to exact numbers. Absolutely. Let's take it. The only thing I can say, it's hard to compare exactly the Sweden fab with the U.S. fab for these numbers, because it will be a little different. You get a lot of standard semiconductor equipment, and you add MEMS equipment separate to that. We will build up MEMS capacity continuously for more capacity. Generally, I agree with you. On gross margin, one, it should work similar, because we should have similar type of margins and type of products and type of customers in the U.S. fab as we have in Sweden fab today. Okay. Got it. Would you say, just to understand a bit better, would the profitability level in the U.S. Fab be higher at the same level of utilization as the Swedish Fab because perhaps the new equipment is more cost-efficient? No, I don't think you can say that generally. Okay. Let's drop that then. Then just two more other external costs. How should we think about the ramp there? Is it also relatively similar to the other fabs or anything that I should account for differently there? Maybe Maria can comment on that. Well, what we are guiding here is that we, in 2028, or the closing 2027-2028, will take over the employees. Then I think, since it's a ramp-up, it's a little bit hard here to compare with the Swedish Fab when it comes to cost- Yeah. ...you have what we have guided on here in 2034, you know how it is now, you have to calculate that. We don't guide on that right now. We are sorry. You know the investment. We are sorry we can't share the numbers more than this at current stage. We will get back with the financial goals and so. For sure. No, 100%. Can I ask my final, the 25 new staff, they've already been hired or? Yeah. The 25 is really, that will be transferred, yeah. They are hired. Perfect. Thank you so much. Cheers. Speak on the quarter. Okay. Thank you. As a reminder, if you'd like to ask a question, please press star five on your telephone keypad. We have no more questions at this time, I'll hand back the call to Edvard and Maria. Okay. Thank you very much for listening in to this webcast, and wish us good luck.