SEALSQ USA Ltd Incorporated in Phoenix to Strengthen Global OSAT Network for Enhanced Localized Production and Support

SEALSQ's strategy is based on a collaborative framework between its existing OSAT Center in France and the Arizona (US) and Murcia (Spain) OSAT Centers currently under negotiations to work together on various aspects of semiconductor development.

The French center’s R&D initiatives will provide foundational technologies and prototypes, which will then be refined and scaled at the US and Spanish centers.

SEALSQ Corp ("SEALSQ" or "Company") (NASDAQ: LAES), a leader in the fields of Semiconductors, PKI, and Post-Quantum technology, today announced the incorporation of SEALSQ USA Ltd (“SEALSQ USA”) in Phoenix, Arizona as part of its plan to create an Open Semiconductors Assembly and Test (“OSAT”) Center in the U.S. by end of 2025. The U.S.-based OSAT center would provide testing services such as the wafer test and final test, in addition to assembly services such as QFN, BGA, WLCSP, and more.

Arizona is leading the nation in supporting the U.S. CHIPS Act's economic and national security objectives. Even before the CHIPS Act was signed into law on August 9, 2022, Arizona had one of the fastest-growing and most established semiconductor industries in the world. The passage of the CHIPS Act, along with new investments and actions from state and industry leaders, has accelerated the growth of Arizona’s productive and efficient semiconductor ecosystem.
To maximize opportunities under the CHIPS Act, Arizona has launched an unprecedented collaborative effort. This initiative brings together stakeholders from state and local governments, industry, trade groups, economic development organizations, universities, community colleges, workforce partners, and more.

These efforts have led to significant new initiatives to enhance the state’s semiconductor ecosystem. These include new industry-led apprenticeships and workforce programs, investments in university infrastructure and R&D, first-of-its-kind training accelerators at community colleges, a national industry roadmap, and more.

SEALSQ's decision to select Arizona as the hub for its USA presence is strategic, largely due to Arizona's prominent position in the global semiconductor industry.

SEALSQ, is strategically leveraging its global facilities to pioneer a new generation of post-quantum semiconductors. The company's approach involves a collaborative effort between its operational center in the South of France, its forthcoming OSAT center in Arizona, and a future site in Spain, which is currently under negotiation.

• In the South of France, SEALSQ operates a cutting-edge R&D center that is instrumental in developing new post-quantum cryptographic algorithms and initial semiconductor designs using advanced RISC-V technology. The French center’s role is to create and test prototypes, which are then refined and scaled at other facilities.
  
  
• The Arizona OSAT center, set to be operational by the end of 2025, will be a cornerstone in SEALSQ’s strategy. This facility will handle extensive testing services, including wafer and final tests, alongside assembly services such as QFN, BGA, and WLCSP. One of its primary focuses will be integrating post-quantum cryptographic algorithms directly into semiconductor architectures, crucial for protecting data against quantum computing threats and ensuring long-term security. Additionally, the Arizona center will specialize in embedding artificial intelligence (AI) protocols into semiconductor hardware. This innovation aims to provide unmatched security and efficiency by enabling real-time threat adaptation, optimizing power consumption, and enhancing processing speeds.
  
  
• SEALSQ’s planned OSAT center in Spain will bolster its European production capabilities with focus to Spain and Latin American markets. This site will focus on assembling and testing semiconductor products tailored for the European market, ensuring a resilient and diversified supply chain. Collaborative projects between the Spanish, French, and Arizona centers will integrate the latest post-quantum and AI technologies, maintaining consistency and fostering innovation across all facilities.
  
  

Carlos Moreira, CEO of SEALSQ, emphasizing the significance of this strategic development, noted, "In today's tech-driven world, control over semiconductor supply is not just an economic advantage; it is a national security imperative. By connecting our global network of OSAT centers, our initiative empowers countries to establish local semiconductor personalization centers, ensuring uninterrupted access to these critical components and fostering a resilient, integrated supply chain."

The success of SEALSQ's strategy lies in its collaborative framework. Cross-functional teams from US, France, and Spain will work together on various aspects of semiconductor development. Researchers and engineers will share insights and innovations, ensuring that each center benefits from collective knowledge and advancements. The French center’s R&D initiatives will provide foundational technologies and prototypes, which will then be refined and scaled at the Arizona and Spanish centers.

By integrating post-quantum cryptographic algorithms, SEALSQ’s semiconductors will set new industry standards for security and efficiency. The network of centers allows SEALSQ to serve global markets more effectively, with regional centers providing localized production and support. This geographical diversification ensures a robust and resilient supply chain, mitigating risks and ensuring continuous innovation and production.

SEALSQ is also leveraging public-private partnerships to enhance capabilities at each center. Collaborations with local governments, universities, and industry partners are expected to drive innovation and workforce development.

SEALSQ’s Arizona OSAT center will play a pivotal role in developing the next generation of post-quantum semiconductors. Working in concert with the French center and the future Spanish OSAT, this integrated approach ensures a seamless transition from R&D to production. The strategy not only fosters innovation but also sets new benchmarks for security and efficiency in the semiconductor industry.

Benefits of establishing a OSAT Center in Arizona:

• Presence of Leading Semiconductor Companies: Arizona has become a hotspot for the semiconductor industry, housing some of the world's leading companies in this sector. This creates a vibrant ecosystem conducive to growth, collaboration, and innovation. For SEALSQ, being close to these industry leaders offers significant advantages in terms of partnerships, industry insights, and competitive dynamics.
  
  
• Specialized High-Tech Supply Chain: Arizona's semiconductor industry is supported by a highly specialized, high-tech supply chain. Companies in Arizona have access to advanced materials, components, and services tailored specifically to the semiconductor industry, reducing logistical challenges, improving efficiency, and lowering costs for companies like SEALSQ.
  
  
• Innovative Environment: Arizona's semiconductor sector is known for its innovative ideas and practices, spanning from research and development to manufacturing processes. Being part of such an innovative environment fosters creativity and encourages SEALSQ to push the boundaries of its technological advancements and product offerings.
  
  
• Skilled Workforce: The presence of leading semiconductor companies and a high-tech ecosystem attracts a skilled workforce with expertise in various aspects of semiconductor manufacturing and technology. SEALSQ can benefit from this talent pool for its operations, research, and development activities.
  
  
• Strategic Location: Arizona's geographic location offers strategic advantages, including access to major markets within the USA and proximity to other tech hubs in the Western United States. This facilitates easy distribution and logistics, as well as collaboration with other companies and institutions.
  
  

Arizona provides a comprehensive and conducive ecosystem for semiconductor companies. For SEALSQ, leveraging this ecosystem means tapping into a network of leading companies, a specialized supply chain, a pool of skilled talent, and a culture of innovation, all supported by favorable government policies. This strategic choice positions SEALSQ to effectively scale its operations, innovate, and compete in the U.S. market.

The US-based OSAT will represent 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.

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; SEALSQ’s ability raise funding with which to create an OSAT in the markets mentioned; SEALSQ’s ability to successfully develop semiconductor technology that incorporates AI; 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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