SALEM, N.H. -- AmberWave Systems Corporation, the global leader in advanced semiconductor intellectual property (IP), today announced it has partnered with IQE Silicon Compounds Ltd., a wholly owned subsidiary of IQE plc (LSE: IQE.L),the world's largest outsource manufacturer of epitaxial wafers and services, for the high-volume production of epiwafers based on AmberWave's proprietary (epsilon)MOS strained silicon technology. Under the terms of the agreement, AmberWave has licensed its Generation 1 strained silicon technology to IQE's Silicon Compounds division for the production of 200 mm wafers. AmberWave's worldwide licensee base will have immediate access to these wafers for use in next-generation digital, wireless and optoelectronic applications. This partnership addresses the semiconductor industry's key challenge of minimizing capital expenditure while simultaneously increasing speed and reducing power in commercial integrated circuits (ICs). Historically, as foundries, IDMs and fabless organizations become limited by the constraints of silicon technology, the industry is forced to build new fabs at the next-generation process node (gate length). According to Pathfinder Research, this endeavor cost in excess of $62 billion in 2000. AmberWave's strained silicon technology uses the cost-effective silicon infrastructure already in place throughout the industry, so no additional capital investment is necessary. Working together, AmberWave and IQE plc offer the semiconductor industry immediate and cost-effective access to epiwafers that will increase speed and reduce power in conventional CMOS, enabling tremendous advancements in digital, wireless and optoelectronic applications. AmberWave Systems Corp.IQE PLC