WISeKey Semiconductors Actively Supports the European Commission’s Chips Act, Launched February 8, 2022

Rhea-AI Summary

WISeKey supports the European Chips Act, enhancing EU chip production and reducing reliance on non-EU sources. The company, a top-20 EU semiconductor firm, manufactures security chips vital for privacy and data sovereignty, notably in drones and satellite communications. Europe's aim to increase its semiconductor market share from 10% to 20% by 2030 is backed by significant investments. Despite a global semiconductor shortage affecting industries, WISeKey is actively negotiating with suppliers and diversifying sourcing to maintain service quality.

Positive

• WISeKey is one of the top-20 publicly-listed EU-based semiconductor companies.
• The company supports the European Commission’s Chips Act to increase the EU's semiconductor production capacity.
• WISeKey's VaultIC semiconductors are tamper-resistant and enhance digital security.

Negative

• The global semiconductor shortage continues to affect industries, including WISeKey's supply chain.

WISeKey Semiconductors Actively Supports the European Commission’s Chips Act, Launched February 8, 2022

Meyreuil, PROVENCE-ALPES-CÔTE D'AZUR France - February 10, 2022: WISeKey International Holding Ltd. (“WISeKey”) (SIX: WIHN, NASDAQ: WKEY), a leading global cybersecurity, AI, Blockchain and IoT company, today announced that its semiconductors segment is fully supporting the European Chips Act aiming to reduce dependency on non-EU chips and to strengthen the EU’s position in chip making.

WISeKey Semiconductors, based in France, is one of the top-20 publicly-listed EU-based semiconductor companies. As a defender of European values, WISeKey is currently working with the European Commission to help achieve the goals of the EU Chips Act.

WISeKey Semiconductors manufactures security chips to actively support European values in terms of consumer protection, privacy, and data sovereignty. For example, WISeKey security chips are being used to protect European drones and their captured images, and to protect satellite communication from agriculture and logistics sensors.

The European Union is making significant investments into chip production in an attempt to avert supply chain disruptions. Addressing European lawmakers, Ursula von der Leyen, President of the European Commission, noted that although Europe's global semiconductor market share is only 10% today, the goal is for the European Union to supply 20% of the world's microchips production by 2030 (global chip production is expected to double by 2030). And this new Act will enable progress in 5 key areas:

1. Strengthen research and innovation capacity in Europe
2. Ensure European leadership in design and manufacturing
3. Adapt state aid rules to allow public support - for the first time - for European, first-of-a-kind production facilities.
4. Improve the ability to anticipate and respond to shortages and supply issues in the area
5. Support smaller, innovative companies.
   
   

WISeKey VaultIC semiconductors are a family of tamper-resistant secure chips with firmware that brings digital security and cryptographic functions to Cold Wallets and other cryptographic-enabled devices, as part of WISeKey’s scalable security framework. These chips provide configurable cryptographic services for authentication, data confidentiality and integrity checks. VaultIC offers a wide bundle of standard, NIST-recommended cryptographic algorithms (such as ECC, RSA, ECDSA, AES, SHA) and associated key lengths. A certified, hardware-based True Random Number Generator complements this set of features. VaultIC also provides on-chip secure data storage for secret keys, certificates, and data. VaultIC comes with a rich software environment including tools for protected boot, secure firmware update for IoT devices and secure communication (SSL/TLS) stacks.

While most industries are dramatically impacted by the current semiconductor shortage, market analysts predict the same situation will continue into 2022. According to experts, this shortage is the combination of several factors. The global consumer demand dropped during the beginning of the COVID-19 pandemic and the semiconductor industry had to significantly reduce its manufacturing capacity to mitigate consequences on profitability; however, the worldwide lockdown had an unforecastable positive effect on the high-tech products market: tons of new laptops, monitors, smartphones, routers, modems and gaming consoles have created a surge in chips across industries that low inventory and limited production capacities haven’t been able to absorb.

Billions of WISeKey’s secure chips are embedded in high-tech products and goods to protect data, communication and firmware against cyberattacks. This includes routers, modems, energy smart meters, drones and medical devices, to mention a few. As a fabless company, WISeKey trusts a network of subcontractors and partners to provide its most prestigious customers with the best leadtimes and service. While the Company’s book-to-bill ratio is exploding, it has to challenge its existing supply chain and find short and long term solutions to maintain and even continue to raise the bar on service quality. These solutions involve continuous negotiations with current suppliers and investments to diversify sourcing, including relocating some of the processes to minimize transportation and environmental effects.

“WISeKey has been selected by global companies as their digital trust partner,” said Bernard Vian, MD WISeKey Semiconductors “Our VaultIC and other secure chips are massively used in many sensitive applications that require not only a unique technology expertise, but also a perfect supply chain. We are again demonstrating reactivity and agility to provide our customers with the best business continuity, in spite of the current semiconductor crisis.”

To learn more about WISeKey’s cSemiconductors propositions, visit WISeKey.com.

About WISeKey
WISeKey (NASDAQ: WKEY; SIX Swiss Exchange: WIHN) is a leading global cybersecurity company currently deploying large scale digital identity ecosystems for people and objects using Blockchain, AI and IoT respecting the Human as the Fulcrum of the Internet. WISeKey microprocessors secure the pervasive computing shaping today’s Internet of Everything. WISeKey IoT has an install base of over 1.5 billion microchips in virtually all IoT sectors (connected cars, smart cities, drones, agricultural sensors, anti-counterfeiting, smart lighting, servers, computers, mobile phones, crypto tokens etc.).  WISeKey is uniquely positioned to be at the edge of IoT as our semiconductors produce a huge amount of Big Data that, when analyzed with Artificial Intelligence (AI), can help industrial applications to predict the failure of their equipment before it happens.
Our technology is Trusted by the OISTE/WISeKey’s Swiss based cryptographic Root of Trust (“RoT”) provides secure authentication and identification, in both physical and virtual environments, for the Internet of Things, Blockchain and Artificial Intelligence. The WISeKey RoT serves as a common trust anchor to ensure the integrity of online transactions among objects and between objects and people. For more information, visit www.wisekey.com.

Press and investor contacts:

WISeKey International Holding Ltd Company Contact:  Carlos Moreira Chairman & CEO Tel: +41 22 594 3000 info@wisekey.com

WISeKey Investor Relations (US) Contact:  Lena Cati The Equity Group Inc. Tel: +1 212 836-9611 lcati@equityny.com

Disclaimer:
This communication expressly or implicitly contains certain forward-looking statements concerning WISeKey International Holding Ltd and its business. Such statements involve certain known and unknown risks, uncertainties and other factors, which could cause the actual results, financial condition, performance or achievements of WISeKey International Holding Ltd to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. WISeKey International Holding Ltd 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.
This press release does not constitute an offer to sell, or a solicitation of an offer to buy, any securities, and it does not constitute an offering prospectus within the meaning of article 652a or article 1156 of the Swiss Code of Obligations or a listing prospectus within the meaning of the listing rules of the SIX Swiss Exchange. Investors must rely on their own evaluation of WISeKey and its securities, including the merits and risks involved. Nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of WISeKey.

FAQ

What is WISeKey's role in the European Chips Act?

WISeKey supports the European Chips Act, aimed at enhancing EU chip production and reducing dependency on non-EU sources.

How does the European Chips Act benefit WISeKey?

The Act allows WISeKey to participate in efforts to increase the EU's semiconductor market share and secure investments in chip production.

What products does WISeKey manufacture related to the Chips Act?

WISeKey manufactures security chips under its VaultIC line used in various applications including drones and satellite communications.

What is the current state of the semiconductor industry affecting WISeKey?

The semiconductor industry is facing a significant shortage, impacting supply chains and production capacities globally.

How does WISeKey ensure service quality amid semiconductor shortages?

WISeKey is negotiating with suppliers and diversifying sourcing to maintain and improve service quality.