eSilicon Expands In Asia Through Acquisition of Silicon Design Solutions

Triples Its Leading-Edge Engineering Resources

SUNNYVALE Calif. - May 27, 2010 - eSilicon Corporation, the largest independent semiconductor Value Chain Producer (VCP), today announced the completion of its asset acquisition of Silicon Design Solutions (SDS), a privately held company supplying niche semiconductor memory intellectual property (IP) and design services to manufacturers and designers of cutting-edge SoCs.

The acquisition of SDS brings eSilicon a world-class team with a successful track record of first-time silicon success and demonstrated ability to provide niche memory IP and design services at leading-edge process nodes down to 28nm. Customer-specific IP and services are expected to benefit eSilicon customers with improved chip performance, decreased power consumption and reductions in die size. With the expanded engineering presence in Asia, eSilicon plans to grow its customer base and potential for design wins in the region.

"The feedback we have had from customers and partners of both eSilicon and SDS has been universally positive," said Patrick Soheili, Vice President of Marketing and Business Development at eSilicon. "The acquisition of SDS will quickly provide differentiation for both eSilicon and its customers with proven niche IP and design services. Additionally, eSilicon now has a worldwide footprint with engineering centers of excellence close to our customers in North America, Europe and Asia. We will continue to add value to our customers and supply chain partners with SDS resources and capabilities."

"Based on our years of experience working with both companies, eSilicon and SDS' capabilities, business models and design portfolios appear to complement each other well, " said Phil Yastrow, Director of Product Marketing for Avago Technologies ASIC Products Division. "SDS joining forces with eSilicon results in a combination that stands to benefit the SOC customer-community."

With the completion of the acquisition, eSilicon headquartered in Sunnyvale, California has 320 employees. Its engineering centers are located in California, Pennsylvania, New Jersey, Romania, China and Vietnam.

About Value Chain Producer

A Value Chain Producer (VCP) is a company that collaborates with foundries, IP and service providers, EDA suppliers, package, assembly and test operations in designing and producing chips for fabless IC, IDM and OEM companies. VCPs optimize the economics of customer value chains and enable customers to focus on their product differentiation and market growth. A VCP earns revenue by shipping packaged, tested products with the customers' logo. The term was created by eSilicon and was adopted by the Global Semiconductor Alliance (GSA) as a new category in October 2009.

About eSilicon

eSilicon, a pioneering semiconductor Value Chain Producer (VCP), provides a comprehensive suite of design, productization and manufacturing services, enabling a flexible, low-cost, lower-risk path to volume chip production. The company delivers application specific integrated circuits (ASICs) to system original equipment manufacturers (OEMs) and fabless semiconductor companies who serve a wide variety of markets including the consumer, computer, communications and industrial segments. eSilicon - Enabling Your Silicon Success™. For more information, please visit www.esilicon.com.