Ikanos Communications Selects eSilicon For Manufacturing Operations and Logistics

SUNNYVALE, CA and FREMONT, CA — DEC 8, 2011 — eSilicon Corporation, the largest independent semiconductor value chain producer (VCP), and Ikanos Communications (NASDAQ: IKAN), a leading provider of advanced broadband semiconductor and software products, announced today that they have entered into a master services and supply agreement under which eSilicon will manage Ikanos' manufacturing operations and related logistics functions including supply chain management for Ikanos production products.

“Ikanos remains committed to offering our customers innovative and differentiated products,” said Dado Banatao, Chairman, interim president and CEO of Ikanos. “With eSilicon, we have a proven partner that can help Ikanos streamline its ability to bring these advanced products to market.”

Through this agreement, Ikanos will leverage a comprehensive manufacturing services offering from eSilicon including scheduling, production management, testing and other processes. The resulting efficiencies will allow Ikanos to focus its resources on new product development and increase the effectiveness of its logistics and operations functions. Ikanos will continue to manage all aspects of the customer interface, forecasting and ordering.

“eSilicon’s patented eSilicon Access® production management system was specifically implemented to make it easy and efficient to manage manufacturing operations,” said Jack Harding, president and CEO of eSilicon. “This allows our customers to focus their resources on architecting and designing their next-generation products and on bringing innovative solutions to end customers.”

About Ikanos Communications

Ikanos Communications, Inc. (NASDAQ: IKAN) is a leading provider of advanced broadband semiconductor and software products for the digital home. The company's broadband DSL, communications processors and other offerings power access infrastructure and customer premises equipment for many of the world's leading network equipment manufacturers and telecommunications service providers. For more information, visit www.ikanos.com

About Value Chain Producers

A value chain producer (VCP) is a company that collaborates with foundries, IP and service providers, EDA suppliers, and 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.

About eSilicon

eSilicon, the largest independent semiconductor VCP, delivers ASICs to OEMs and fabless semiconductor companies through a fast, flexible, lower-risk path to volume production by deploying its comprehensive suite of design-through-manufacturing services. eSilicon serves a wide variety of markets including the communications, computer, consumer and industrial segments. www.esilicon.com