SEALSQ Announces Intention to Establish OSAT Center in the US

The company is currently evaluating Colorado, Arizona, and New York as potential locations. It is intended that the center will be operational by the end of 2025.

 Accompanying video is available at https://www.youtube.com/watch?v=J4SsXEAGvyo.

Tortola, British Virgin Islands – February 6, 2024: SEALSQ Corp ("SEALSQ" or "Company") (NASDAQ: LAES), a leader in the fields of Semiconductors, PKI, and Post-Quantum technology, today announced its plan to establish an Open Semiconductors Assembly and Test (“OSAT”) Center in the United States (“US”). The US-based OSAT would provide testing services such as the wafer test and final test, in addition to assembly services such as QFN, BGA, WLCSP, and more.

The initiative encompasses the development of Semiconductor Personalization Centers through Public-Private Partnerships (PPP). SEALSQ is currently in negotiation for three major projects in Europe, the Middle East, and the Far East to implement similar processes, run by experienced hardware designers to create the chip design using RISC-V technology. The chips will still be built locally at the SEALSQ centers, ensuring they meet the highest security standards and certifications from bodies such as Common Criteria and NIST.

The US-based OSAT will focus on the SEALSQ (Semiconductor, Efficient Architecture for Long-term Security Quantum) semiconductors, post-quantum cryptography, and artificial intelligence (AI), having the potential to herald a transformative era for semiconductor technology. This delves into the technical underpinnings and potential impacts of this integration, exploring how it paves the way for a new generation of semiconductors that are poised to redefine security, efficiency, and intelligence in digital systems.

Governments, including the US and EU, are currently establishing incentives to increase supply chain resilience, emphasizing the need for SEALSQ’s expanded operations. In the US, the International Technology Security and Innovation (ITSI) Fund, appropriated under the Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act of 2022, provides the Department of State with $500 million — $100 million per year over five years, starting in Fiscal Year 2023 — to promote the development and adoption of secure and trustworthy telecommunications networks and ensure semiconductor supply chain security and diversification. To learn more, visit www.state.gov/the-u-s-department-of-state-international-technology-security-and-innovation-fund/.

The EU Chips Act likewise aims to increase supply chain resilience, though is also meant to safeguard European sovereignty and strategic autonomy with a 45 billion euro budget.

Carlos Moreira, CEO of SEALSQ, emphasized the strategic significance, noting, "In today's tech-driven world, control over semiconductor supply is not just an economic advantage, it is a national security imperative. Our initiative empowers countries to establish local semiconductor personalization centers, ensuring uninterrupted access to these critical components."

The US-based OSAT represents a pioneering approach to integrating quantum-resistant cryptographic capabilities directly into semiconductor architectures. This innovation is critical in the face of emerging quantum computing threats, which render traditional encryption methods vulnerable. By embedding post-quantum cryptographic algorithms at the hardware level, SEALSQ semiconductors offer robust protection against both current and future cryptographic challenges.

Post-quantum cryptography (“PQC”) is designed to secure communications against the computational power of quantum computers, which can easily break many of the cryptographic systems currently in use. Integrating PQC into semiconductor architectures involves leveraging lattice-based, hash-based, code-based, and multivariate polynomial equations that are believed to be resistant to quantum computing attacks. This integration ensures that data encrypted by these semiconductors remains secure against adversaries wielding quantum computing capabilities.

AI's Role in the New Generation of Semiconductors

AI integration into semiconductor technology is not just about enhancing chip performance or making devices smarter. It's about embedding adaptive, intelligent security and efficiency protocols directly into the hardware. AI algorithms can monitor and adapt to new threats in real-time, predict and manage power consumption, and optimize processing speeds and energy efficiency based on the workload. This means that SEALSQ semiconductors will not only be quantum-resistant, but self-optimizing, capable of evolving in response to both emerging threats and operational demands.

The convergence of SEALSQ semiconductors, post-quantum cryptography, and AI represents a holistic approach to the next generation of semiconductor technology. This integration addresses the critical need for security in an era of quantum computing, while also capitalizing on the adaptive power of AI to create semiconductors that are both incredibly secure and supremely efficient.

About SEALSQ

SEALSQ focuses on selling integrated solutions based on Semiconductors, PKI and Provisioning services, while developing Post-Quantum technology hardware and software products. Our solutions can be used in a variety of applications, from Multi-Factor Authentication tokens, Smart Energy, Smart Home Appliances, and IT Network Infrastructure, to Automotive, Industrial Automation and Control Systems.

Post-Quantum Cryptography (PQC) refers to cryptographic methods that are secure against an attack by a quantum computer. As quantum computers become more powerful, they may be able to break many of the cryptographic methods that are currently used to protect sensitive information, such as RSA and Elliptic Curve Cryptography (ECC). PQC aims to develop new cryptographic methods that are secure against quantum attacks.

For more information please visit www.sealsq.com.

Forward-Looking Statements

This communication expressly or implicitly contains certain forward-looking statements concerning SEALSQ Corp and its businesses. Forward-looking statements include statements regarding our business strategy, financial performance, results of operations, market data, events or developments that we expect or anticipates will occur in the future, as well as any other statements which are not historical facts. Although we believe that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond our control. Actual results may differ materially from those expressed or implied by such forward-looking statements. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include SEALSQ's ability to implement its growth strategies; SEALSQ’s ability to generate revenue from emerging new semiconductors; SEALSQ’s ability to generate revenue from Matter certification and the new cyber trust mark standards; the successful introduction of the WISeSat picosatellite constellation; SEALSQ's ability to continue beneficial transactions with material parties, including a limited number of significant customers; market demand and semiconductor industry conditions; and the risks discussed in SEALSQ's filings with the SEC. Risks and uncertainties are further described in reports filed by SEALSQ with the SEC.

SEALSQ Corp is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise.

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