Faraday to Offer Uninterrupted Long Term Supply for First Industrial Focused Microcontroller

Faraday, a strategic partner of UMC, to provide supply for Innovasic's fido™ microcontroller

Hsinchu, Taiwan and Sunnyvale, California -- September 19, 2006 -- Faraday Technology Corporation (TAIEX: 3035), a partner of UMC and a leading ASIC and IP provider, today announced that it will provide a long-term supply for the new fido1100 (flexible input deterministic output) microcontroller for Innovasic Semiconductor, a leader in replacement integrated circuit (IC) and microcontroller solutions.

Through its strategic partnership with UMC, Faraday will provide Innovasic Semiconductor and its customers with 10 plus years of preferential supply for the fido family. In exchange, Faraday and Innovasic will team to develop expertise and technologies, which are necessary for mission-critical applications in harsh environmental conditions. The exchange is designed to enable both companies to expand their addressable markets.

"Faraday and Innovasic have been partners for many years,” said Luis Ancajas, VP of Sales of Faraday Technology USA . “I'm excited that we are expanding our partnership to support Innovasic's exciting new fido family serving a market with some of the most stringent performance and reliability requirements.”

The fido microcontroller is the first microcontroller designed specifically to meet the demands of industrial applications – real-time and safety-critical performance, inventory management, reduced development time and long life-cycle support.

“Innovasic has built its reputation on long life-cycle solutions for the Industrial market,” said Keith Prettyjohns, CEO of Innovasic Semiconductor. “This partnership helps to assure that customers who purchase our new fido family microcontroller will be supported for the duration of their product life cycles.”

About Innovasic® Semiconductor

Innovasic Semiconductor is a fabless semiconductor company focused on serving the industrial market. The company has established a world-class reputation for solving obsolescence problems by developing microcontrollers and peripheral ICs that are one hundred percent compatible with an original manufacturer’s part in response to an End of Life notice. Having shipped over a million production ICs to the industrial market, Innovasic has become a trusted partner and an approved vendor to many of the leading industrial equipment manufacturers worldwide.

By developing close partnerships with its customers, the company has not only secured numerous wins for its growing line of replacement microcontrollers, but it has now launched its own family of industrial microcontrollers – specifically designed to solve problems typically overlooked by other semiconductor manufacturers. The new fido™ brand of microcontrollers have a novel architecture protected by multiple patent applications, while at the same time being compatible with one of the most widely used instruction sets.

For more information on fido, please visit http://www.engineersbestfriend.com/
For more information on Innovasic Semiconductor, please visit http://www.innovasic.com

About Faraday Technology Corporation

Faraday Technology Corporation is a leading silicon IP and fabless ASIC vendor. The company's broad SIP portfolio includes 32-bit RISC CPUs, DSPs, MPEG4, H.264, PHYs/Controllers for USB 2.0, 10/100 Ethernet, Serial ATA, PCI Express, Cell Library and Memory Compiler. With more than 650 employees and 2005 revenue of US$175 million, Faraday is one of the largest fabless ASIC companies in the Asia-Pacific region, and it also has a significant presence in other world-wide markets. Headquartered in Taiwan , Faraday has service and support offices around the world, including the U.S. , Japan , Europe, and China . For more information, please visit :www.faraday-tech.com