X-FAB — Annual Report 2020

Mar 30, 2021

40 NAT.	Filing date		N°. 0882.390.885	P.	1 U.	EUR D.		C-c 1
	ANNUAL ACCOUNTS AND OTHER DOCUMENTS TO BE FILED IN ACCORDANCE WITH THE BELGIAN COMPANIES AND ASSOCIATIONS CODE
		IDENTIFICATION DETAILS (at the filing date)
NAME:		X-FAB SILICON FOUNDRIES
Legal form:	SE
Address:		TRANSPORTSTRAAT						N°. 1
Postal code:	3980		Town: Tessenderlo
Country:	Belgium
Website :	1	Register of legal persons - commercial court:	Antwerpen, Division Hasselt
							Company registration number	0882.390.885
DATE		7-4-2017	of filing the most recent document mentioning the date of publication of the deed of incorporation and of the deed of amendment of the articles of association.
	ANNUAL ACCOUNTS		IN EURO (2 decimals)	2
				approved by the general meeting of				29-4-2021
			regarding the period from		1-1-2020		to	31-12-2020
			Preceding period from		1-1-2019		to	31-12-2019
		The amounts for the preceding period	3 are are not identical to the ones previously published. /
	Total number of pages filed: 67 Numbers of the sections of the standard model form not filed because they serve no useful purpose: 6.1, 6.2.1, 6.2.2, 6.2.3, 6.2.4, 6.2.5, 6.3.1, 6.3.4, 6.3.5, 6.3.6, 6.4.2, 6.4.3, 6.5.2, 6.6, 6.8, 6.17, 6.18.2, 6.19, 6.20, 9, 11, 12, 13, 14, 15
	Signature Signature (name and position) (name and position) Rudi De Winter

Optional mention. 1

If necessary, change to currency in which the amounts are expressed. 2

³ Strike out what does not apply.

LIST OF DIRECTORS, BUSINESS MANAGERS AND AUDITORS AND DECLARATION REGARDING A COMPLIMENTARY REVIEW OR CORRECTION ASSIGNMENT

LIST OF DIRECTORS, BUSINESS MANAGERS AND AUDITORS

COMPLETE LIST with surname, first names, profession, place of residence (address, number, postal code and town) and position within the company

KPMG Bedrijfsrevisoren BV 0419.122.548

Luchthaven Brussel Nationaal 1K, 1930 Zaventem, Belgium

Title : Auditor, Membership number : B00001

Mandate : 30-4-2020- 27-4-2023

Represented by :

Carmans Herwig 1.

Luchthaven Brussel Nationaal 1K , 1930 Zaventem, Belgium

, Membership number : A02326

Iacona Estelle

Title : Director Mandate : 16-3-2017- 29-4-2021 Transportstraat 1, 3980 Tessenderlo, Belgium

DUCHATELET ROLAND

Title : Director Mandate : 16-3-2017- 29-4-2021 Transportstraat 1, 3980 Tessenderlo, Belgium

Verschaeren Christel Constancia C.

Title : Director Mandate : 16-3-2017- 29-4-2021 Transportstraat 1, 3980 Tessenderlo, Belgium

STRAUB HANS-JÜRGEN

Title : Director Mandate : 16-3-2017- 29-4-2021 Transportstraat 1, 3980 Tessenderlo, Belgium

TARMIZI BIN SULAIMAN AHMAD

Title : Director Mandate : 16-3-2017- 29-4-2021 Transportstraat 1, 3980 Tessenderlo, Belgium

BIN BUGO HAMID

Title : Director Mandate : 16-3-2017- 29-4-2021 Transportstraat 1, 3980 Tessenderlo, Belgium

LIST OF DIRECTORS, BUSINESS MANAGERS AND AUDITORS (continued from previous page)

Sensinnovat BV 0884.338.607

Boektlaan 14, 3550 Heusden-Zolder, Belgium

Title : Delegated director

Mandate : 17-3-2017- 29-4-2021

Represented by :

• De Winter Rudi 1.
• Transportstraat 1 , 3980 Tessenderlo, Belgium

Aurore NV 0445.038.572

Beigemsesteenweg 55, 1850 Grimbergen, Belgium

Title : Director

Mandate : 26-4-2018- 28-4-2022

Represented by :

Juliame Christine 1.

Beigemsesteenweg 55 , 1850 Grimbergen, Belgium

VLINVLIN BV 0723.452.427

Lege Veldkantlaan 18, 2540 Hove, Belgium

Title : Director

Mandate : 25-4-2019- 27-4-2023

Represented by :

QI Lin 1.

Lege Veldkantlaan 18 , 2540 Hove, Belgium

DECLARATION REGARDING A COMPLIMENTARY REVIEW OR CORRECTION ASSIGNMENT

The managing board declares that not a single audit or correction assignment has been given to a person not authorized to do so by law, pursuant to articles 34 and 37 of the law of 22 April 1999 concerning accounting and tax professions.

The annual accounts were / were not * or corrected by an external accountant or by a company auditor who is not the statutory auditor.

If affirmative, should be mentioned hereafter: surname, first names, profession and address of each external accountant or company auditor and their membership number at their Institute, as well as the nature of their assignment:

• A. Bookkeeping of the company **,
• B. Preparing the annual accounts **,
• C. Auditing the annual accounts and/or
• D. Correcting the annual accounts.

If the tasks mentioned under A or B are executed by certified accountants or certified bookkeepers - tax experts, the following information can be mentioned hereafter: surname, first names, profession and address of each certified accountant or certified bookkeeper-tax expert and their membership number at the Institute of Accounting professionals and Tax Experts, as well as the nature of their assignment.

Surname, first names, profession and address	Membership number	Nature of the assignment (A, B, C and/or D)

^* Strike out what does not apply.

^** Optional mention.

ANNUAL ACCOUNTS

BALANCE SHEET AFTER APPROPRIATION

	Notes	Codes	Period	Preceding period
ASSETS
FORMATION EXPENSES	6.1	20
FIXED ASSETS		21/28	873.292.809,85	850.000.317,41
Intangible fixed assets	6.2	21
Tangible fixed assets	6.3	22/27	23.616,06	31.123,62
Land and buildings		22
Plant, machinery and equipment		23	103,20	185,76
Furniture and vehicles		24	23.512,86	30.937,86
Leasing and other similar rights		25
Other tangible fixed assets		26
Assets under construction and advance payments		27
Financial fixed assets	6.4 / 6.5.1	28	873.269.193,79	849.969.193,79
Affiliated Companies	6.15	280/1	873.269.193,79	849.969.193,79
Participating interests		280	847.250.020,65	822.250.020,65
Amounts receivable		281	26.019.173,14	27.719.173,14
Other companies linked by participating interests	6.15	282/3
Participating interests		282
Amounts receivable		283
Other financial fixed assets		284/8
Shares		284
Amounts receivable and cash guarantees		285/8

	Notes	Codes	Period	Preceding period
CURRENT ASSETS		29/58	72.793.563,07	49.054.613,93
Amounts receivable after more than one year		29
Trade debtors		290
Other amounts receivable		291
Stocks and contracts in progress		3
Stocks		30/36
Raw materials and consumables		30/31
Work in progress		32
Finished goods		33
Goods purchased for resale		34
Immovable property intended for sale		35
Advance payments		36
Contracts in progress		37
Amounts receivable within one year		40/41	36.795.165,87	17.285.128,35
Trade debtors		40
Other amounts receivable		41	36.795.165,87	17.285.128,35
Current investments	6.5.1 / 6.6	50/53
Own shares		50
Other investments		51/53
Cash at bank and in hand		54/58	35.991.009,55	31.769.485,58
Accruals and deferred income	6.6	490/1	7.387,65
TOTAL ASSETS		20/58	946.086.372,92	899.054.931,34

	Notes	Codes	Period	Preceding period
EQUITY AND LIABILITIES
EQUITY		10/15	941.160.942,86	891.340.577,18
Contributions	6.7.1	10/11	750.358.942,84	750.358.942,84
Capital		10	657.456.850,68	657.456.850,68
Issued capital		100	657.456.850,68	657.456.850,68
4 Uncalled capital		101
Beyond capital		11	92.902.092,16	92.902.092,16
Share premium account		1100/10	92.902.092,16	92.902.092,16
Other		1109/19
Revaluation surpluses		12
Reserves		13	10.110.616,84	7.058.043,56
Reserves not available		130/1	10.110.616,84	7.058.043,56
Legal reserve		130	9.549.061,84	7.058.043,56
Reserves not available statutorily		1311
Purchase of own shares		1312	561.555,00
Financial support		1313
Other		1319
Untaxed reserves		132
Available reserves		133
Accumulated profits (losses) (+)/(-)		14	180.691.383,18	133.923.590,78
Capital subsidies		15
Advance to shareholders on the distribution of net 5 assets		19
PROVISIONS AND DEFERRED TAXES		16
Provisions for liabilities and charges		160/5
Pensions and similar obligations		160
Taxes		161
Major repairs and maintenance		162
Environmental obligations		163
Other liabilities and charges	6.8	164/5
Deferred taxes		168

Amount to be deducted from the issued capital. 4

Amount to be deducted from the other components of equity. 5

	Notes	Codes	Period	Preceding period
AMOUNTS PAYABLE		17/49	4.925.430,06	7.714.354,16
Amounts payable after more than one year	6.9	17
Financial debts		170/4
Subordinated loans		170
Unsubordinated debentures		171
Leasing and other similar obligations		172
Credit institutions		173
Other loans		174
Trade debts		175
Suppliers		1750
Bills of exchange payable		1751
Advance payments on contracts in progress		176
Other amounts payable		178/9
Amounts payable within one year	6.9	42/48	4.897.322,86	7.714.354,16
Current portion of amounts payable after more than one year falling due within one year		42
Financial debts		43
Credit institutions		430/8
Other loans		439
Trade debts		44	14.299,80	445.920,39
Suppliers		440/4	14.299,80	445.920,39
Bills of exchange payable		441
Advance payments on contracts in progress		46
Taxes, remuneration and social security	6.9	45	149.302,71	498.054,93
Taxes		450/3	116.067,00	474.802,00
Remuneration and social security		454/9	33.235,71	23.252,93
Other amounts payable		47/48	4.733.720,35	6.770.378,84
Accruals and deferred income	6.9	492/3	28.107,20
TOTAL LIABILITIES		10/49	946.086.372,92	899.054.931,34

PROFIT AND LOSS ACCOUNT

	Notes	Codes	Period	Preceding period
Operating income		70/76A	9.932.875,87	8.981.676,86
Turnover	6.10	70	9.920.344,33	8.975.365,31
Stocks of finished goods and work and contracts in progress: increase (decrease) (+)/(-)		71
Produced fixed assets		72
Other operating income	6.10	74	12.531,54	6.311,55
Non-recurring operating income	6.12	76A
Operating charges		60/66A	9.853.505,56	11.456.186,43
Goods for resale, raw materials and consumables		60
Purchases		600/8
Stocks: decrease (increase) (+)/(-)		609
Services and other goods		61	9.682.874,65	9.063.571,79
Remuneration, social security and pensions (+)/(-)	6.10	62	162.728,20	170.919,72
Amortisations of and other amounts written down on formation expenses, intangible and tangible fixed assets		630	7.507,56	6.249,29
Amounts written down on stocks, contracts in progress and trade debtors: additions (write-backs) (+)/(-)	6.10	631/4
Provisions for liabilities and charges: appropriations (uses and write-backs) (+)/(-)	6.10	635/8
Other operating charges	6.10	640/8	395,15	129.478,50
Operating charges reported as assets under restructuring costs (-)		649
Non-recurring operating charges	6.12	66A		2.085.967,13
Operating profit (loss) (+)/(-)		9901	79.370,31	-2.474.509,57

	Notes	Codes	Period	Preceding period
Financial income		75/76B	50.229.751,50	69.282.287,19
Recurring financial income		75	50.229.751,50	69.282.287,19
Income from financial fixed assets		750	50.212.198,71	66.300.347,37
Income from current assets		751	337,32	274.776,01
Other financial income	6.11	752/9	17.215,47	2.707.163,81
Non-recurring financial income	6.12	76B
Financial charges	6.11	65/66B	488.756,13	2.224,21
Recurring financial charges		65	488.756,13	2.224,21
Debt charges		650	1.283,99	2.224,21
Amounts written down on current assets other than stocks, contracts in progress and trade debtors: additions (write-backs) (+)/(-)		651
Other financial charges		652/9	487.472,14
Non-recurring financial charges	6.12	66B
Profit (Loss) for the period before taxes (+)/(-)		9903	49.820.365,68	66.805.553,41
Transfer from deferred taxes		780
Transfer to deferred taxes		680
Income taxes on the result(+)/(-)	6.13	67/77		967.392,03
Taxes		670/3		967.392,03
Adjustment of income taxes and write-back of tax provisions		77
Profit (Loss) of the period (+)/(-)		9904	49.820.365,68	65.838.161,38
Transfer from untaxed reserves		789
Transfer to untaxed reserves		689
Profit (Loss) of the period available for appropriation (+)/(-)		9905	49.820.365,68	65.838.161,38

APPROPRIATION ACCOUNT

Profit (Loss) to be appropriated (+)/(-)
Profit (Loss) of the period available for appropriation (+)/(-)
Profit (Loss) of the preceding period brought forward (+)/(-)	14P
Transfers from equity
from contributions	791
from reserves	792
Appropriations to equity
to contributions	691
to legal reserve
to other reserves
Profit (loss) to be carried forward (+)/(-)	(14)
Shareholders' contribution in respect of losses	794
Profit to be distributed
Compensation for contributions	694
Directors or managers	695
Employees	696
Other beneficiaries	697

Codes	Period	Preceding period
9906	183.743.956,46	137.215.498,85
(9905)	49.820.365,68	65.838.161,38
14P	133.923.590,78	71.377.337,47
791/2
791
792
691/2	3.052.573,28	3.291.908,07
691
6920	2.491.018,28	3.291.908,07
6921	561.555,00
(14)	180.691.383,18	133.923.590,78
794
694/7
694
695
696

	Codes	Period	Preceding period
PLANT, MACHINERY AND EQUIPMENT
Acquisition value at the end of the period	8192P	xxxxxxxxxxxxxxx	247,65
Movements during the period
Acquisitions, including produced fixed assets	8162
Sales and disposals	8172
Transfers from one heading to another (+)/(-)	8182
Acquisition value at the end of the period	8192	247,65
Revaluation surpluses at the end of the period	8252P	xxxxxxxxxxxxxxx
Movements during the period
Recorded	8212
Acquisitions from third parties	8222
Cancelled	8232
Transferred from one heading to another (+)/(-)	8242
Revaluation surpluses at the end of the period	8252
Amortisations and amounts written down at the end of the period	8322P	xxxxxxxxxxxxxxx	61,89
Movements during the period
Recorded	8272	82,56
Written back	8282
Acquisitions from third parties	8292
Cancelled owing to sales and disposals	8302
Transferred from one heading to another (+)/(-)	8312
Amortisations and amounts written down at the end of the period	8322	144,45
NET BOOK VALUE AT THE END OF THE PERIOD	(23)	103,20

	Codes	Period	Preceding period
FURNITURE AND VEHICLES
Acquisition value at the end of the period	8193P	xxxxxxxxxxxxxxx	37.125,26
Movements during the period
Acquisitions, including produced fixed assets	8163
Sales and disposals	8173
Transfers from one heading to another (+)/(-)	8183
Acquisition value at the end of the period	8193	37.125,26
Revaluation surpluses at the end of the period	8253P	xxxxxxxxxxxxxxx
Movements during the period
Recorded	8213
Acquisitions from third parties	8223
Cancelled	8233
Transfers from one heading to another (+)/(-)	8243
Revaluation surpluses at the end of the period	8253
Amortisations and amounts written down at the end of the period	8323P	xxxxxxxxxxxxxxx	6.187,40
Movements during the period
Recorded	8273	7.425,00
Written back	8283
Acquisitions from third parties	8293
Cancelled owing to sales and disposals	8303
Transfers from one heading to another (+)/(-)	8313
Amortisations and amounts written down at the end of the period	8323	13.612,40
NET BOOK VALUE AT THE END OF THE PERIOD	(24)	23.512,86

STATEMENT OF FINANCIAL FIXED ASSETS

	Codes	Period	Preceding period
AFFILIATED COMPANIES - PARTICIPATING INTERESTS AND SHARES
Acquisition value at the end of the period	8391P	xxxxxxxxxxxxxxx	822.250.020,65
Movements during the period
Acquisitions	8361	25.000.000,00
Sales and disposals	8371
Transfers from one heading to another (+)/(-)	8381
Acquisition value at the end of the period	8391	847.250.020,65
Revaluation surpluses at the end of the period	8451P	xxxxxxxxxxxxxxx
Movements during the period
Recorded	8411
Acquisitions from third parties	8421
Cancelled	8431
Transferred from one heading to another (+)/(-)	8441
Revaluation surpluses at the end of the period	8451
Amounts written down at the end of the period	8521P	xxxxxxxxxxxxxxx
Movements during the period
Recorded	8471
Written back	8481
Acquisitions from third parties	8491
Cancelled owing to sales and disposals	8501
Transferred from one heading to another (+)/(-)	8511
Amounts written down at the end of the period	8521
Uncalled amounts at the end of the period	8551P	xxxxxxxxxxxxxxx
Movements during the period (+)/(-)	8541
Uncalled amounts at the end of the period	8551
NET BOOK VALUE AT THE END OF THE PERIOD	(280)	847.250.020,65
AFFILIATED COMPANIES - AMOUNTS RECEIVABLE
NET BOOK VALUE AT THE END OF THE PERIOD	281P	xxxxxxxxxxxxxxx	27.719.173,14
Movements during the period
Appropriations	8581	23.300.000,00
Repayments	8591
Amounts written down	8601
Amounts written back	8611
Exchange differences (+)/(-)	8621
Other movements (+)/(-)	8631	-25.000.000,00
NET BOOK VALUE AT THE END OF THE PERIOD	(281)	26.019.173,14
ACCUMULATED AMOUNTS WRITTEN DOWN ON AMOUNTS RECEIVABLE AT END OF THE PERIOD	8651

PARTICIPATING INTERESTS INFORMATION

PARTICIPATING INTERESTS AND OTHER RIGHTS IN OTHER COMPANIES

The following list mentions the companies in which the company holds a participating interest (recorded in headings 280 and 282 of assets), as well as the companies in which the company holds rights (recorded in headings 284 and 51/53 of assets) for an amount of at least 10% of the capital, the equity or a class of shares of the company.

NAME, full address of the REGISTERED	Rights held			Data extracted from the most recent annual accounts
OFFICE and, for an entity governed by Belgian law, the COMPANY	Directly			Subs idiaries	Annual	Cur	Equity	Net result
REGISTRATION NUMBER	Nature	Number	%	%	accounts as per	rency code	(+) or (-) (in units)
X-FAB SEMICONDUCTOR FOUNDRIES AG HAARBERGSTRASSE 67 99097 ERFURT Germany					31/12/2019	EUR	363.769.176	5.163.264
X-FAB SARAWAK SDH. BDH. SILICON DRIVE 1 93350 KUCHING Malaysia	REGISTERED SHARES	21.564.560	97,20	2,80	31/12/2019	USD	318.355.411	88.262.529
X-FAB JAPAN KK SHIN YOKOHAMA DAINI CENTER BUILDING 10F 3-19-5 SHIN YOKOHAMA Japan	REGISTERED SHARES	2.184.594.83 5	100,00	0,00	31/12/2019	USD	-1.283.483	13.171
X-FAB MEMS FOUNDRY GMBH Haarbergstrasse 67 99097 ERFURT Germany	REGISTERED SHARES	160	100,00	0,00	31/12/2019	EUR	26.697.680	-7.225.781
X-Fab France SAS NV Rue du Faubourg Saint Honore 72 75008 Parijs France	REGISTERED SHARES	0	100,00	0,00	31/12/2019	EUR	76.528.264	-49.858.296
	REGISTERED SHARES	60.574.261	100,00	0,00

STATEMENT OF CAPITAL AND SHAREHOLDERS' STURCTURE

STATEMENT OF CAPITAL		Period	Preceding period
Capital
Issued capital at the end of the period	100P	XXXXXXXXXXXXXX	657.456.850,68
Issued capital at the end of the period	(100)	657.456.850,68
	Codes	Period	Number of shares

Modifications during the period

Composition of the capital Share types

Registered shares
Shares dematerialized

Shares without nominal value.		657.456.850,68	130.781.669
Registered shares	8702	XXXXXXXXXXXXXX	76.089.834
Shares dematerialized	8703	XXXXXXXXXXXXXX	54.691.835
	Codes	Uncalled amount	Called up amount, unpaid

	Codes	Uncalled amount	Called up amount, unpaid
Unpaid capital
Uncalled capital	(101)		XXXXXXXXXXXXXX
Called up capital, unpaid	8712	XXXXXXXXXXXXXX
Shareholders that still need to pay up in full

	Codes	Period
Own shares
Held by the company itself
Amount of capital held	8721
Number of shares	8722
Held by a subsidiary
Amount of capital held	8731	561.555,00
Number of shares	8732	149.748
Commitments to issuing shares
Owing to the exercise of conversion rights
Amount of outstanding convertible loans	8740
Amount of capital to be subscribed	8741
Corresponding maximum number of shares to be issued	8742
Owing to the exercise of subscription rights
Number of outstanding subscription rights	8745
Amount of capital to be subscribed	8746
Corresponding maximum number of shares to be issued	8747
Authorised capital not issued	8751

	Codes	Period
Shares issued, non-representing capital
Distribution
Number of shares	8761
Number of voting rights attached thereto	8762
Allocation by shareholder
Number of shares held by the company itself	8771
Number of shares held by its subsidiaries	8781

ADDITIONAL NOTES REGARDING CONTRIBUTIONS (INCLUDING CONTRIBUTIONS IN THE FORM OF SERVICES OR KNOW-HOW)

Period

SHAREHOLDERS' STRUCTURE OF THE COMPANY AT YEAR-END CLOSING DATE

As reflected in the notifications received by the company pursuant to article 7:225 of the Belgian Companies and Associations Code, article 14 fourth paragraph of the law of 2 May 2007 on the publication of major holdings and article 5 of the Royal Decree of 21 August 2008 on further rules for certain multilateral trading facilities.

NAME AND ADDRESS	Kind of shares	Total voting rights	$\frac{9}{6}$
XTRION NV TRANSPORTSTRAAT 1 3980 TESSENDERLO 0878.389.438	Registered shares Dematerialized shares	61.141.179 2.192.384	48.4
SARAWAK TECHNOLOGY HOLDINGS Sdn. Bhd., MALAYSIA	Registered shares	14.948.655	11,4
OTHERS (Private & Public)	Registered shares / Dematerialized shares	52.499.451	40,2

STATEMENT OF AMOUNTS PAYABLE AND ACCRUALS AND DEFERRED INCOME (LIABILITIES)

	Codes	Period
BREAKDOWN OF AMOUNTS PAYABLE WITH AN ORIGINAL TERM OF MORE THAN ONE YEAR, ACCORDING TO THEIR RESIDUAL MATURITY
Current portion of amounts payable after more than one year falling due within one year
Financial debts	8801
Subordinated loans	8811
Unsubordinated debentures	8821
Leasing and other similar obligations	8831
Credit institutions	8841
Other loans	8851
Trade debts ………………………………………………………………………………………………	8861
Suppliers	8871
Bills of exchange payable	8881
Advance payments on contracts in progress	8891
Other amounts payable	8901
Total current portion of amounts payable after more than one year falling due within one year	(42)
Amounts payable with a remaining term of more than one year, yet less than 5 years
Financial debts	8802
Subordinated loans	8812
Unsubordinated debentures	8822
Leasing and other similar obligations	8832
Credit institutions	8842
Other loans	8852
Trade debts ………………………………………………………………………………………………	8862
Suppliers	8872
Bills of exchange payable	8882
Advance payments on contracts in progress	8892
Other amounts payable	8902
Total amounts payable with a remaining term of more than one year, yet less than 5 years Amounts payable with a remaining term of more than 5 years	8912
Financial debts	8803
Subordinated loans	8813
Unsubordinated debentures	8823
Leasing and other similar obligations	8833
Credit institutions	8843
Other loans	8853
Trade debts	8863
Suppliers ………………………………………………………………………………………………	8873
Bills of exchange payable	8883
Advance payments on contracts in progress	8893
Other amounts payable	8903
Amounts payable with a remaining term of more than 5 years	8913

	Codes	Period
AMOUNTS PAYABLE GUARANTEED (included in accounts 17 and 42/48 of liabilities)
Amounts payable guaranteed by the Belgian government agencies
Financial debts	8921
Subordinated loans ………………………………………………………………………………………………	8931
Unsubordinated debentures	8941
Leasing and other similar obligations	8951
Credit institutions	8961
Other loans	8971
Trade debts	8981
Suppliers ………………………………………………………………………………………………	8991
Bills of exchange payable	9001
Advance payments on contracts in progress	9011
Remuneration and social security	9021
Other amounts payable	9051
Total of the amounts payable guaranteed by the Belgian government agencies	9061
Amounts payable guaranteed by real securities given or irrevocably promised by the company on its own assets
Financial debts	8922
Subordinated loans	8932
Unsubordinated debentures	8942
Leasing and other similar obligations	8952
Credit institutions ………………………………………………………………………………………………	8962
Other loans ………………………………………………………………………………………………	8972
Trade debts	8982
Suppliers	8992
Bills of exchange payable	9002
Advance payments on contracts in progress	9012
Taxes, remuneration and social security	9022
Taxes ………………………………………………………………………………………………	9032
Remuneration and social security	9042
Other amounts payable	9052
Total amounts payable guaranteed by real securities given or irrevocably promised by the company on its own assets	9062

	Codes	Period
TAXES, REMUNERATION AND SOCIAL SECURITY
Taxes (headings 450/3 and 178/9 of liabilities)
Outstanding tax debts	9072
Accruing taxes payable	9073
Estimated taxes payable	450	116.067.00
Remuneration and social security (headings 454/9 and 178/9 of liabilities)
Amounts due to the National Social Security Office	9076
Other amounts payable in respect of remuneration and social security	9077	33.235.71

$\mathbf +$

ACCRUALS AND DEFERRED INCOME

Allocation of heading 492/3 of liabilities if the amount is significant

Period

OPERATING RESULTS

	Codes	Period	Preceding period
OPERATING INCOME
Net turnover
Allocation by categories of activity
Allocation by geographical market
Other operating income
Operating subsidies and compensatory amounts received from public authorities	740
OPERATING CHARGES
Employees for whom the company submitted a DIMONA declaration or who are recorded in the general personnel register
Total number at the closing date	9086	1	2
Average number of employees calculated in full-time equivalents	9087	1,5	2,0
Number of actual hours worked	9088	2.614	3.754
Personnel costs
Remuneration and direct social benefits	620	137.718,62	137.133,19
Employers' contribution for social security	621	25.009,58	33.786,53
Employers' premiums for extra statutory insurance	622
Other personnel costs	623
Retirement and survivors' pensions	624

	Codes	Period	Preceding period
Provisions for pensions and similar obligations
Appropriations (uses and write-backs) (+)/(-)	635
Depreciations
On stock and contracts in progress
Recorded	9110
Written back	9111
On trade debtors
Recorded	9112
Written back	9113
Provisions for liabilities and charges
Appropriations	9115
Uses and write-backs	9116
Other operating charges
Taxes related to operation	640	395,15	129.478,50
Other	641/8
Hired temporary staff and personnel placed at the company's disposal
Total number at the closing date	9096
Average number calculated in full-time equivalents	9097
Number of actual hours worked	9098
Costs to the company	617

N°.	0882.390.885		C-c 6.11
-----	--------------	--	----------

FINANCIAL RESULTS

	Codes	Period	Preceding period
RECURRING FINANCIAL INCOME
Other financial income
Subsidies paid by public authorities, added to the profit and loss account
Capital subsidies	9125
Interest subsidies	9126
Allocation of other financial income
Exchange differences realized	754	17.215,47	1.981.753,00
Other
Unrealised exchange rate gain			725.411,00
RECURRING FINANCIAL CHARGES
Depreciation of loan issue expenses	6501
Capitalised interests	6502
Depreciations on current assets
Recorded	6510
Written back	6511
Other financial charges
Amount of the discount borne by the company, as a result of negotiating amounts receivable	653
Provisions of a financial nature
Appropriations	6560
Uses and write-backs	6561
Allocation of other financial costs
Exchange differences realized	654
Results from the conversion of foreign currencies	655
Other
Unrealised exchange rate loss		487.472,14

INCOME AND CHARGES OF EXCEPTIONAL SIZE OR FREQUENCY

	Codes	Period	Preceding period
NON-RECURRING INCOME	76
Non-recurring operating income	(76A)
Write-back of depreciation and of amounts written off intangible and tangible fixed assets	760
Write-back of provisions for extraordinary operating liabilities and charges	7620
Capital profits on disposal of intangible and tangible fixed assets	7630
Other non-recurring operating income	764/8
Non-recurring financial income	(76B)
Write-back of amounts written down financial fixed assets	761
Write-back of provisions for extraordinary financial liabilities and charges	7621
Capital profits on disposal of financial fixed assets	7631
Other non-recurring financial income	769
NON-RECURRING CHARGES	66		2.085.967,13
Non-recurring operating charges	(66A)		2.085.967,13
Non-recurring depreciation of and amounts written off formation expenses, intangible and tangible fixed assets	660
Provisions for extraordinary operating liabilities and charges: appropriations (uses) (+)/(-)	6620
Capital losses on disposal of intangible and tangible fixed assets	6630
Other non-recurring operating charges	664/7		2.085.967,13
Non-recurring operating charges carried to assets as restructuring costs (-)	6690
Non-recurring financial charges	(66B)
Amounts written off financial fixed assets	661
Provisions for extraordinary financial liabilities and charges - appropriations (uses) (+)/(-)	6621
Capital losses on disposal of financial fixed assets	6631
Other non-recurring financial charges	668
Non-recurring financial charges carried to assets as restructuring costs (-)	6691

TAXES

Period

	Codes	Period
INCOME TAXES
Income taxes on the result of the period	9134
Income taxes paid and withholding taxes due or paid	9135
Excess of income tax prepayments and withholding taxes paid recorded under assets	9136
Estimated additional taxes	9137
Income taxes on the result of prior periods	9138
Additional income taxes due or paid	9139
Additional income taxes estimated or provided for	9140
Major reasons for the differences between pre-tax profit, as it results from the annual accounts, and estimated taxable profit
Disallowed expenses		6.000,00
DRD		50.000.000,00

Influence of non-recurring results on income taxes on the result of the period

	Codes	Period
Sources of deferred taxes
Deferred taxes representing assets	9141
Accumulated tax losses deductible from future taxable profits	9142
Other deferred taxes representing assets Other		173.500,00
Deferred taxes representing liabilities	9144
Allocation of deferred taxes representing liabilities

	Codes	Period	Preceding period
VALUE-ADDED TAXES AND TAXES BORNE BY THIRD PARTIES
Value-added taxes charged
To the company (deductible)	9145	1.959.844,51	816.176,57
By the company	9146	1.816.141,01	639.555,20
Amounts withheld on behalf of third party by way of
Payroll withholding taxes	9147	54.400,40	57.063,18
Withholding taxes on investment income	9148

RIGHTS AND COMMITMENTS NOT REFLECTED IN THE BALANCE SHEET

	Codes	Period
PERSONAL GUARANTEES PROVIDED OR IRREVOCABLY PROMISED BY THE COMPANY AS SECURITY FOR DEBTS AND COMMITMENTS OF THIRD PARTIES	9149	89.700.000,00
Of which
Bills of exchange in circulation endorsed by the company	9150
Bills of exchange in circulation drawn or guaranteed by the company	9151
Maximum amount for which other debts or commitments of third parties are guaranteed by the company	9153	89.700.000,00
REAL GUARANTEES
Real guarantees provided or irrevocably promised by the company on its own assets as security of debts and commitments of the company
Mortgages
Book value of the immovable properties mortgaged	91611
Amount of registration	91621
For irrevocable mortgage mandates, the amount for which the agent can take registration	91631
Pledging of goodwill
Maximum amount up to which the debt is secured and which is the subject of registration	91711
For irrevocable mandates to pledge goodwill, the amount for which the agent can take the inscription	91721
Pledging of other assets or irrevocable mandates to pledge other assets
Book value of the immovable properties mortgaged	91811
Maximum amount up to which the debt is secured	91821
Guarantees provided or irrevocably promised on future assets
Amount of assets in question	91911
Maximum amount up to which the debt is secured	91921
Vendor's privilege
Book value of sold goods	92011
Amount of the unpaid price	92021

	Codes	Period
Real guarantees provided or irrevocably promised by the company on its own assets as security of debts and commitments of third parties
Mortgages
Book value of the immovable properties mortgaged	91612
Amount of registration	91622
For irrevocable mortgage mandates, the amount for which the agent can take registration	91632
Pledging of goodwill
Maximum amount up to which the debt is secured and which is the subject of registration	91712
For irrevocable mandates to pledge goodwill, the amount for which the agent can take the inscription	91722
Pledging of other assets or irrevocable mandates to pledge other assets
Book value of the immovable properties mortgaged	91812
Maximum amount up to which the debt is secured	91822
Guarantees provided or irrevocably promised on future assets
Amount of assets in question	91912
Maximum amount up to which the debt is secured	91922
Vendor's privilege
Book value of sold goods	92012
Amount of the unpaid price	92022

	Codes	Period
GOODS AND VALUES, NOT REFLECTED IN THE BALANCE SHEET, HELD BY THIRD PARTIES IN THEIR OWN NAME BUT FOR THE BENEFIT AND AT THE RISK OF THE COMPANY
SUBSTANTIAL COMMITMENTS TO ACQUIRE FIXED ASSETS
SUBSTANTIAL COMMITMENTS TO DISPOSE OF FIXED ASSETS
FORWARD TRANSACTIONS
Goods purchased (to be received)	9213
Goods sold (to be delivered)	9214
Currencies purchased (to be received)	9215
Currencies sold (to be delivered)	9216

Period COMMITMENTS RELATING TO TECHNICAL GUARANTEES IN RESPECT OF SALES OR SERVICES

N°.	0882.390.885			C-c 6.14
AMOUNT, NATURE AND FORM CONCERNING LITIGATION AND OTHER IMPORTANT COMMITMENTS		Period
MEMBERS	Brief description Measures taken to cover the related charges	SETTLEMENT REGARDING THE COMPLEMENTARY RETIREMENT OR SURVIVORS' PENSION FOR PERSONNEL AND BOARD
			Code	Period
	PENSIONS FUNDED BY THE COMPANY ITSELF Methods of estimation	Estimated amount of the commitments resulting from past services	9220
	the balance sheet or income statement	NATURE AND FINANCIAL IMPACT OF SIGNIFICANT EVENTS AFTER THE CLOSING DATE not reflected in		Period
	SALE OR PURCHASE	COMMITMENTS TO PURCHASE OR SALE AVAILABLE TO THE COMPANY AS ISSUER OF OPTIONS FOR		Period
	REFLECTED IN THE BALANCE SHEET	NATURE, COMMERCIAL OBJECTIVE AND FINANCIAL CONSEQUENCES OF TRANSACTIONS NOT If the risks and benefits resulting from such transactions are of any meaning and if publishing such risks and benefits is necessary to appreciate the financial situation of the company		Period
	cannot be calculated)	OTHER RIGHTS AND COMMITMENTS NOT REFLECTED IN THE BALANCE SHEET (including those that		Period
	support and to guarantee the continuity.	X-FAB SE has signed a comfort letter for X-FAB France SAS and X-FAB MEMS Foundry GmbH for financial

RELATIONSHIPS WITH AFFILIATED COMPANIES, ASSOCIATED COMPANIES AND OTHER COMPANIES LINKED BY PARTICIPATING INTERESTS

	Codes	Period	Preceding period
AFFILIATED COMPANIES
Financial fixed assets	(280/1)	873.269.193,79	849.969.193,79
Participating interests	(280)	847.250.020,65	822.250.020,65
Subordinated amounts receivable	9271
Other amounts receivable	9281	26.019.173,14	27.719.173,14
Amounts receivable	9291	36.278.747,75	16.880.628,67
Over one year	9301
Within one year	9311	36.278.747,75	16.880.628,67
Current investments	9321
Shares	9331
Amounts receivable	9341
Amounts payable	9351	4.733.720,35	7.072.623,45
Over one year	9361
Within one year	9371	4.733.720,35	7.072.623,45
Personal and real guarantees
Provided or irrevocably promised by the company as security for debts or commitments of affiliated companies	9381
Provided or irrevocably promised by affiliated companies as security for debts or commitments of the company	9391
Other significant financial commitments	9401
Financial results
Income from financial fixed assets	9421	50.212.198,71	65.871.921,04
Income from current assets	9431		270.445,64
Other financial income	9441	17.215,47	2.707.163,81
Debt charges	9461	1.283,99	2.224,21
Other financial charges	9471	487.472,14
Disposal of fixed assets
Capital profits realised	9481
Capital losses realised	9491

RELATIONSHIPS WITH AFFILIATED COMPANIES, ASSOCIATED COMPANIES AND OTHER COMPANIES
LINKED BY PARTICIPATING INTERESTS

	Codes	Period	Preceding period
ASSOCIATED COMPANIES
Financial fixed assets	9253
Participating interests	9263
Subordinated amounts receivable	9273
Other amounts receivable	9283
Amounts receivable	9293
Over one year	9303
Within one year	9313
Amounts payable	9353
Over one year	9363
Within one year	9373
Personal and real guarantees
Provided or irrevocably promised by the company as security for debts or commitments of affiliated companies	9383
Provided or irrevocably promised by affiliated companies as security for debts or commitments of the company	9393
Other significant financial commitments	9403
COMPANIES LINKED BY PARTICIPATING INTERESTS
Financial fixed assets	9252
Participating interests	9262
Subordinated amounts receivable	9272
Other amounts receivable	9282
Amounts receivable	9292
Over one year	9302
Within one year	9312
Amounts payable	9352
Over one year	9362
Within one year	9372

RELATIONSHIPS WITH AFFILIATED COMPANIES, ASSOCIATED COMPANIES AND OTHER COMPANIES LINKED BY PARTICIPATING INTERESTS

TRANSACTIONS WITH AFFILIATED PARTIES BEYOND NORMAL MARKET CONDITIONS

Mention of these transactions if they are significant, including the amount of the transactions, the nature of the link, and all information about the transactions that should be necessary to get a better understanding of the financial situation of the company

Due to the absence of legal criteria to assess the related party transactions at market conditions, no information can be given.

FINANCIAL RELATIONSHIPS WITH

	Codes	Period
DIRECTORS AND MANAGERS, INDIVIDUALS OR LEGAL PERSONS WHO CONTROL THE COMPANY DIRECTLY OR INDIRECTLY WITHOUT BEING ASSOCIATED THEREWITH, OR OTHER COMPANIES CONTROLLED DIRECTLY OR INDIRECTLY BY THESE PERSONS
Amounts receivable from these persons	9500
Principal conditions regarding amounts receivable, rate of interest, duration, any amounts repaid, cancelled or written off
Guarantees provided in their favour	9501
Other significant commitments undertaken in their favour	9502
Amount of direct and indirect remunerations and pensions, reflected in the income statement, as long as this disclosure does not concern exclusively or mainly, the situation of a single identifiable person
To directors and managers	9503
To former directors and former managers	9504

	Codes	Period
THE AUDITOR(S) AND THE PERSONS WHOM HE (THEY) IS (ARE) COLLABORATING WITH
Auditors' fees	9505	129.400,00
Fees for exceptional services or special assignments executed within the company by the auditor
Other audit assignments	95061	23.550,00
Tax consultancy assignments	95062
Other assignments beyondthe audit	95063
Fees for exceptional services or special assignments executed within the company by people the auditor(s) is (are collaborating with
Other audit assignments	95081
Tax consultancy assignments	95082
Other assignments beyondthe audit	95083

Mentions related to article 3:64, § 2 and § 4 of the Belgian Companies and Associations Code

DECLARATION WITH REGARD TO THE CONSOLIDATED ANNUAL ACCOUNTS

INFORMATION TO DISCLOSE BY EACH COMPANY GOVERNED BY THE BELGIAN COMPANIES AND ASSOCIATIONS CODE ON THE CONSOLIDATED ANNUAL ACCOUNTS

The company has prepared and published consolidated annual accounts and a consolidated annual report*

The company has not prepared consolidated annual accounts and a consolidated annual report, because of an exemption for the following reason(s)*

The company and its subsidiaries exceed, on a consolidated basis, not more than one of the criteria mentioned in article 1:26 of the Belgian Companies and Associations Code*

The company only has subsidiaries that, considering the evaluation of the consolidated capital, the consolidated financial position or the consolidated result, individually or together, are of negligible interestError! Bookmark not defined. (article 3:23 of the Belgian Companies and Associations Code)

The company itself is a subsidiary of a parent company that prepares and publishes consolidated annual accounts, in which the annual accounts are integrated by consolidation*

INFORMATION TO BE PROVIDED BY THE COMPANY IN CASE IT IS A SUBSIDIARY OR A JOINT SUBSIDIARY

Name, full address of the registered office and, if it concerns companies under Belgian law, the company registration number of the parent company(ies) and the indication if this (these) parent company(ies) prepares (prepare) and publishes (publish) consolidated annual accounts, in which the annual accounts are included by means of consolidation**:

XTRION NV

Transportstraat 1

3980 Tessenderlo, Belgium

0878.389.438

The enterprise draws up consolidated annual accounts data for the major part of the enterprise

If the parent company(ies) is (are) (a) company(ies) governed by foreign law, the location where the abovementioned annual accounts are available**:

^* Strike out what does not apply.

^** Where the annual accounts of the company are consolidated at different levels, the information should be given, on the one hand at the highest and on the other at the lowest level of companies of which the company is a subsidiary and for which consolidated accounts are prepared and published.

ANNUAL REPORT

X-Fab Silicon Foundries

Societas Europæa

Public European limited company

Transportstraat 1

3980 Tessenderlo

Register Legal Persons Hasselt 0882.390.885

ANNUAL REPORT CONCERNING THE FINANCIAL YEAR ENDED AT DECEMBER 31, 2020

According legal requirements, we have the honour to report to you on the economic situation of the company concerning the financial year covering the period from January 1st, 2020 till December 31st, 2020.

This Annual Report and also the Annual Accounts will be made available to you.

$\mathbf{1}$ Comments on the Annual Accounts

X-FAB Silicon Foundries SE was founded on July 5th, 2006 as X-FAB Silicon Foundries NV. On November 4th, 2011 it changed its form to a European Company (Societas Europaea/SE). The company currently still takes the form of a European Company and acts as a holding company, mainly investing in 'pure-play semiconductor wafer' companies. The registered office of the company is located at Transportstraat 1, 3980 Tessenderlo, Belgium.

These comments are based on the balance sheet after appropriation and are consequently valid under reservation of approval of the proposed appropriation by the ordinary general meeting.

The draft of the annual accounts has been drawn up in accordance with the provisions of the Royal Decree of 29 April, 2019 concerning the implementation of the Companies and Associations Code and in accordance with the special legal and regulatory provisions applying to the Company.

The company realized a turnover of 10 mio EUR. The total turnover increased by 10,5% compared to 2019.

The operating gain in 2020 amounted to 80 thousand EUR, while the operating loss last year was 2,5 mio EUR. This change can mainly be attributed to, on the one hand, a decrease of non-recurring operating expenses amounting to 2,1 mio Euro and on the other hand, on an increased Turnover of 1 mio EUR.

The profit to be appropriated for this financial year amounts to 49,8 mio EUR since the financial result is positive by 49,7 mio EUR. This positive result is mainly attributable to the dividend payment by X-FAB Sarawak Sdn. Bhd. Together with the Profit to be carried forward from the previous financial year (133,9 mio EUR), the total Profit to be appropriated amounts to 183,7 mio EUR.

The total balance sheet increased with 47 mio EUR.

$\mathbf{1}$

ANNUAL REPORT

The Financial fixed assets increased with 23,3 mio EUR. The Current assets increased with 23,7 mio EUR as a result of the increase in Other amounts receivable with 19,5 mio EUR on the one hand and an increase in Cash at bank and in hand of 4,2 mio EUR on the other hand.

At the Equity and liabilities side, the total increase of 47 mio EUR can mainly be attributed to an increase in Issued capital as a result of a profit to be appropriated of the financial year for an amount of 49,8 mio EUR. Furthermore, the Amounts payable within one year decreased with 2,8 mio EUR.

$2.$ Appropriation of the results

The Board of Directors proposes to present the profit to be appropriated of 183.743.956 EUR as follows:

Dividends	0 EUR
- Tranfer to legal reserves	2.491.018 EUR
- Transfer to other reserves	561.555 EUR
Profit to be carried forward	180.691.383 EUR

3. Important events after the closing of the financial year

After the close of 2020, there have been no major events that would require disclosure.

4. Research and Development

The research and development expenses made during the financial year by the X-FAB group are described in section 6.3 of chapter 5 of the consolidated report.

5. Branch Offices

The company has no branch offices.

6. Information about the circumstances that could have a considerable impact on the development of the company

We do not expect any circumstances that could have a considerable impact on the evolution of our company.

7. Risks and uncertainties related to the company and its subsidiaries

An investment in shares involves risks and uncertainties. Prior to making a decision to invest in shares of X-FAB, the information provided in this annual report and, in particular, the risks and uncertainties described below should be read and considered carefully. The occurrence of any of these risks could adversely affect the Company's business, results of operations, and/or financial condition.

Risks relating to X-FAB's business and the semiconductor industry

ANNUAL REPORT

X-FAB may face increasing competition.

Although X-FAB operates in a narrow market segment within the broader semiconductor manufacturing industry, the Group faces competition from other semiconductor producers, some of which have greater manufacturing, financial, research and development, and marketing resources than X-FAB does. In the long term, these competitors may win a higher portion of new customers than X-FAB, or win existing customers from X-FAB. If X-FAB cannot provide the same level of design and engineering support, capacity, or advanced capabilities as competitors, it may have a material adverse effect on X-FAB.

X-FAB may face competitive pricing pressures.

Competitors may have an impact on X-FAB's selling prices and demand for its services. Although X-FAB has not experienced significant pricing pressure in the past, there can be no assurance this will be the case in the future. Significant declines in average selling prices (ASPs) could have a material adverse effect on X-FAB.

X-FAB may face raw material price increases.

X-FAB manufactures analog/mixed-signal ICs, utilizing proprietary process technologies and third-party silicon wafers and other raw materials. Changes in the availability or prices of such wafers and raw materials can have an effect on the operating margin if the additional costs cannot be included in the prices for X-FAB's own customers.

In 2020, raw wafer costs accounted for 12% of total cost of sales. For most raw wafer types, X-FAB uses more than one supplier to secure availability of required volumes but also to remain flexible. However, having several suppliers per wafer type also means a greater effort to acquire the necessary qualifications for these suppliers.

X-FAB is subject to risks associated with currency fluctuations.

X-FAB records its financial results in US dollars but receives revenues and incurs costs in a variety of currencies, including euros and Malaysian ringgit. Changes in the exchange rate of the US dollar to the euro or Malaysian ringgit could result in translational losses in a given year, as compared to prior operating periods, or a mismatch between local currency expenses and US dollar revenues. X-FAB makes an effort to increase its share of euro-denominated revenues in order to achieve a better natural hedge; however, this may not be effective in preventing exchange rate losses.

For price, credit, liquidity, and cash flow risks as well as the use of financial instruments, please refer to section 10 of the notes in chapter 5, X-FAB Consolidated Financial Statements.

X-FAB is subject to risks associated with any form of cyber criminality.

X-FAB's operations may be disrupted due to the unauthorized use or theft of critical data as well as sabotage, viruses, or any other malicious activity targeted at the Company's IT infrastructure. This could have an impact on the confidentiality, integrity, and availability of data and/or IT systems of the Company. X-FAB has taken measures to make the Company's IT infrastructure robust and secure and has implemented state-of-the-art security and control frameworks and technology. Any significant interruption or failure of X-FAB's IT systems or any significant breach of security could have an adverse effect on the Company's business, operational results, financial condition, and cash flows.

X-FAB is also subject to the following risks:

• X-FAB depends on successful technological advances.
• X-FAB depends on successful materials, machinery, and component procurement for its manufacturing processes.
• X-FAB's business may temporarily be negatively impacted due to disruptions in the supply chain or market demand caused by a pandemic or epidemic.
• X-FAB may be unable to recruit or retain the personnel required for its growth strategy.
• X-FAB may be affected by reductions in government subsidies and grants and could fail to comply with the conditions and obligations under such subsidy programs.

ANNUAL REPORT

• Industry studies, forecasts, and growth rates relating to the semiconductor market as a whole may not be indicative of X-FAB's operations within the analog/mixed-signal semiconductor market.
• X-FAB's ability to compete successfully and achieve future growth will depend, in part, on its ability to protect its proprietary technology.
• X-FAB may be subject to claims for alleged infringement of third parties' intellectual property rights.
• X-FAB depends on intellectual property rights of third parties, and failure to maintain or acquire licenses could harm the Group's business.
• X-FAB could be adversely affected by manufacturing interruptions.
• If X-FAB experiences difficulty in achieving acceptable device yields or process performance as a result of manufacturing problems, it could result in delayed deliveries.
• X-FAB's insurance coverage may not be adequate to compensate for any interruptions or loss of business
• X-FAB could incur material costs to comply with regulation, including environmental and health and safety laws, especially as a result of climate change. Changes in such regulations could require significant changes in the production process or could even require purchasing additional equipment.
• X-FAB may be subject to litigation, disputes, or other legal proceedings.
• X-FAB carries a significant amount of deferred tax assets on its balance sheet.
• Low or negligible employee motivation as well as the occurrence of accidents due to human failure may negatively impact X-FAB's business.
• Cultural differences may lead to misalignment among X-FAB sites, negatively impacting X-FAB's business.
• X-FAB may be subject to penalty payments if labor rights or environmental provisions are being violated.
• X-FAB's public image may be adversely affected based on the impact of its business on the environment.

Risks related to the shares

• The interests of X-FAB's principal shareholder may not necessarily be aligned with X-FAB's interests or the interests of the holders of the shares.
• Future sales of substantial amounts of X-FAB's ordinary shares, or the perception that such sales could occur, could adversely affect the market value of the shares.
• X-FAB may not be able to pay dividends.
• Investors with a reference currency other than euros will become subject to foreign exchange rate risk when investing in shares.
• Any sale, purchase, or exchange of shares may become subject to financial transaction tax.
• Certain provisions of the Belgian Code on Companies and Associations and the Articles of Association may affect potential takeover attempts and may affect the market price of the shares

Forward-looking information

This annual report may include forward-looking statements. Forward-looking statements are statements regarding or based upon management's current intentions, beliefs, or expectations relating to, among other things, X-FAB's future results of operations, financial condition, liquidity, prospects, growth, strategies, or developments in the industry in which it operates. By their nature, forward-looking statements are subject to risks, uncertainties, and assumptions that could cause actual results or future events to differ materially from those expressed or implied thereby. These risks, uncertainties, and assumptions could adversely affect the outcome and financial effects of the plans and events described herein.

Forward-looking statements contained in this annual report regarding trends or current activities should not be taken as a report that such trends or activities will continue in the future. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, unless legally required. You should not

Name	Age	Mandate expires	Position
Datuk Amar Ahmad Tarmizi bin Haji Sulaiman	58	2021	Chairman of the Board (non- executive director)
Sensinnovat BV (Represented by Rudi De Winter)	60	2021	Managing Director, CEO
Roland Duchâtelet	74	2021	Non-executive director
Thomas Hans-Jürgen Straub	66	2021	Non-executive director
Tan Sri Dr. Hamid Bin Bugo	75	2021	Non-executive director
Aurore NV (Represented by Christine Juliam)	60	2022	Non-executive and independent director
Christel Verschaeren	56	2021	Non-executive and independent director
Estelle lacona	48	2021	Non-executive and independent director
Vlinvlin BV (Represented by Ling Qi)	50	2023	Non-executive and independent director

ANNUAL REPORT

If and when a position of a director prematurely becomes vacant within the Board, the remaining directors have the right to temporarily appoint a new director until the next general meeting which shall confirm such appointment. Said appointment will then be included in the agenda of the next general meeting.

The Remuneration and Nomination Committee makes recommendations to the Board with regard to the appointment of directors, the CEO, and the other members of the Executive Management. The Committee will consider proposals made by the members of the Board or other relevant parties.

Functioning of the Board

The internal regulation of the Board is part of the Corporate Governance Charter. In principle, the Board of Directors meets on a quarterly basis. Additional meetings may be called with appropriate notice at any time to address specific needs of the business. A meeting of the Board of Directors must in any event be convened if requested by at least two directors.

The Board convened nine times in 2020 and discussed, among others, the following topics:

• financial results of the Group;
• Covid-19 impact;
• cost savings;
• cybersecurity;
• budget for the financial years 2021-2023; and
• changes in the Executive Management.

Datuk Amar Ahmad Tarmizi Bin Sulaiman attended one meeting of the Board and was represented by proxy at one other meeting of the Board. All other Board members attended all meetings. Under the lead of the Chairman, the Board regularly evaluates its scope, composition, and performance and that of its committees, as well as the interaction with the Executive Management. The next evaluation will be performed in 2022.

10.4 Committees

Audit Committee

The Audit Committee advises the Board of Directors on accounting, audit, and internal control matters as further detailed in the Company's Corporate Governance Charter. The Audit Committee also assists the Executive Management in its assessment and follow-up of the auditor's recommendations.

The Audit Committee is composed of four non-executive members: Tan Sri Hamid Bin Bugo, Chairman; Aurore NV, represented by Christine Juliam, independent director; Christel Verschaeren, independent director; and Estelle lacona, independent director.

Name	Age	Position
Rudi De Winter	60	Chief Executive Officer
Alba Morganti	52	Chief Financial Officer
Dr. Manfred Riemer	65	Chief Operating Officer (until December 31, 2020)
Dr. Jens Kosch	60	Chief Technology Officer (until June 30, 2020)
Jörg Doblaski	42	Chief Technology Officer (as from July 1, 2020)
Lee Boon Chun	51	Chief Executive Officer, X-FAB Sarawak
Dr. Dirk Drescher	55	Chief Executive Officer, X-FAB France (until September 18, 2020)
Dr. Jocelyne Wasselin	62	Chief Executive Officer, X-FAB France (as of September 19, 2020)
Lloyd Whetzel	63	Chief Executive Officer. X-FAB Texas
Dr. Gabriel Kittler	42	Chief Executive Officer, X-FAB Erfurt (as of September 1, 2020)
Rico Tillner	38	Chief Executive Officer, X-FAB Dresden

6. Proportion of 2. Variable fixed and 5. Total Name, 4. Pension 3. Extraordinary items 1. Fixed remuneration position variable remuneration expense remuneration remuneration One-year Multi-year Other benefits Base salary Fees variable variable Datuk Amar Ahmad Tarmizi bin Haji Sulaiman - Non-executive director \$ 34,237.80 Fixed: 100% Ś. 17,118.90 $\mathsf{s}$ . Ś 17,118.90 Variable: 0% Roland Duchâtelet - Non-executive director Ś \$ $\dot{\mathsf{s}}$ . Ś Fixed: Variable: Thomas Hans-Jürgen Straub - Non-executive director 17.118.90 $S -$ $\mathsf{S}$ 60,450.00 $\mathsf{S}$ 77,568.90 Fixed: 100% Ś. 0% Variable: Tan Sri Dr. Hamid Bin Bugo - Non-executive director $\mathsf{s}$ $\overline{\mathbf{s}}$ $\dot{s}$ . 17,118.90 $\zeta$ 45,650.40 Fixed: 100% 28,531.50 and and construction of the order and company control or services and one of the order or and constructions of the original control of the states of the states of the states of the states of the states of the states of the Variable: 0% . Aurore NV (Represented by Christine Juliam) - Independent director 28.531.50 100% 28.531.50 $S -$ \$ Fixed: s Ś 0% Variable: Christel Verschaeren - Independent director \$ \$. $\ddot{s}$ . \$ 28,531.50 100% 28,531.50 Fixed: ÷ Variable: 0% Estelle Iacona - Independent director $S -$ \$ $\mathsf{\dot{S}}$ 28.531.50 Ś. Fixed: 100% 28,531.50 × . Variable: 0% Vlinvlin BV (Represented by Ling Qi) - Independent director Ś 17,118.90 $S -$ $\mathsf{S}$ 17,118.90 Fixed: 100% \$. ×. as máiste tráisiú a chairte máiste ná con náisteo náiste a chiad seo máiste na chiadraíonta na máiste na cásan máisteoir a chaith na chiadacha na chiadraíonta náisteoir an máisteoir an ch Variable: 0% Sensinnovat BV, permanently represented by Rudi De Winter - Executive, CEO $\ddot{s}$ - Ś Ś. \$ \$ \$. 285,310.43 \$ 285,310.43 Ś Fixed: 100% Variable: 0% Executive Management excl. Sensinnovat BV $\mathsf{s}$ Ś. $5 -$ Ś. \$. \$1,326,706.93 100% \$1,159,551.89 97,429.00 \$69,726.04 Fixed: ٠ Variable: 0%	Tabel 1 - Total remuneration
									1.872.187.87

		2017	2018	2019	2020
Annual change of remuneration
٠	Fixed remuneration		- 15.8%	$-4.4%$	$-21.7%$
٠	Variable remuneration		40.4%	10.2%	100.0%
	Annual change in the developments and performances (in
thousands of USD)
٠	Performance criteria (EBIT)	50,489	32,919	43,865	14,617
٠	Net profit	89.758	22,554	48,540	13,530
	Annual change in the average remuneration of employees on consolidated basis*
			2.26%	6.06%	0.91%

Statutory auditor's report to the general meeting of X-FAB Silicon Foundries SE on the annual accounts as of and for the year ended December 31, 2020

FREE TRANSLATION OF UNQUALIFIED STATUTORY AUDITOR'S REPORT ORIGINALLY PREPARED IN DUTCH

In the context of the statutory audit of the annual accounts of X-FAB Silicon Foundries SE ("the Company"), we provide you with our statutory auditor's report. This includes our report on the annual accounts for the year ended December 31, 2020, as well as other legal and regulatory requirements. Our report is one and indivisible.

We were appointed as statutory auditor by the general meeting of April 30, 2020, in accordance with the proposal of the board of directors issued on the recommendation of the audit committee. Our mandate will expire on the date of the general meeting deliberating on the annual accounts for the year ended December 31, 2022. We have performed the statutory audit of the annual accounts of X-FAB Silicon Foundries SE for 13 consecutive financial years.

Report on the annual accounts

Unqualified opinion

We have audited the annual accounts of the Company as of and for the year ended December 31, 2020, prepared in accordance with the financial reporting framework applicable in Belgium. These annual accounts comprise the balance sheet as at December 31, 2020, the income statement for the year then ended and notes. The balance sheet total amounts to EUR 946.086.373 and the income statement shows a profit for the year of EUR 49.820.366.

In our opinion, the annual accounts give a true and fair view of the Company's equity and financial position as at December 31, 2020 and of its financial performance for the year then ended in accordance with the financial reporting framework applicable in Belgium.

Basis for our unqualified opinion

We conducted our audit in accordance with International Standards on Auditing ("ISAs") as adopted in Belgium. In addition, we have applied the ISAs as issued by the IAASB and applicable for the current accounting year while these have not been adopted in Belgium yet. Our responsibilities under those standards are further described in the "Statutory auditors' responsibility for the audit of the annual accounts" section of our report. We have complied with the ethical requirements that are relevant to our audit of the annual accounts in Belgium, including the independence requirements.

We have obtained from the board of directors and the Company's officials the explanations and information necessary for performing our audit.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

KPMG Bedrijfsrevisoren - KPMG Réviseurs d'Entreprises, a Belgian BV/SRL and
a member firm of the KPMG global organization of independent member firms
affiliated with KPMG international Limited, a private English company li uarantee. All rights reserved.
ocument Classification: KPMG Public

Zetel - Siège:
Luchthaven Brussel Nationaal 1K
B-1930 Zaventem

KPMG Bedrijfsrevisoren - KPMG
Réviseurs d'Entreprises BV/SRL
Ondernemingsnummer / Numéro imingsnummer / M
rise 0419.122.548 d'entreprise 0419.122.548

BTW - TVA BE 0419.122.548

RPR Brussel - RPM Bruxelles

IBAN : BE 95 0018 4771 0358

BIC : GEBABEBB

Statutory auditor's report to the general meeting of X-FAB Silicon Foundries SE on the annual accounts as of and for the year ended December 31, 2020

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the annual accounts of the current period. These matters were addressed in the context of our audit of the annual accounts as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

We did not identify key audit matters to report.

Board of directors' responsibilities for the preparation of the annual accounts

The board of directors is responsible for the preparation of these annual accounts that give a true and fair view in accordance with the financial reporting framework applicable in Belgium, and for such internal control as board of directors determines, is necessary to enable the preparation of annual accounts that are free from material misstatement, whether due to fraud or error.

In preparing the annual accounts, the board of directors is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the board of directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Statutory auditor's responsibilities for the audit of the annual accounts

Our objectives are to obtain reasonable assurance as to whether the annual accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of the users taken on the basis of these annual accounts.

When performing our audit we comply with the legal, regulatory and professional requirements applicable to audits of the annual accounts in Belgium. The scope of the statutory audit of the annual accounts does not extend to providing assurance on the future viability of the Company nor on the efficiency or effectivity of how the board of directors has conducted or will conduct the business of the Company. Our responsibilities regarding the going concern basis of accounting applied by the board of directors are described below

As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We also perform the following procedures:

— Identify and assess the risks of material misstatement of the annual accounts, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting

Document Classification: KPMG Public

Statutory auditor's report to the general meeting of X-FAB Silicon Foundries SE on the annual accounts as of and for the year ended December 31, 2020

from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;

• Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control;
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by board of directors;
• Conclude on the appropriateness of board of directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the annual accounts or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern;
• Evaluate the overall presentation, structure and content of the annual accounts, including the disclosures, and whether the annual accounts represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the audit committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the audit committee with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

For the matters communicated with the audit committee, we determine those matters that were of most significance in the audit of the annual accounts of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter.

Other legal and regulatory requirements

Responsibilities of the Board of Directors

The board of directors is responsible for the preparation and the content of the board of directors' annual report on the annual accounts, of the documents required to be filed in accordance with the legal and regulatory requirements, for maintaining the Company's accounting records in compliance with the applicable legal and regulatory requirements, as well as for the Company's compliance with the Companies' Code or, as from January 1, 2020, the Companies' and Associations' Code and the Company's articles of association.

3

Statutory auditor's report to the general meeting of X-FAB Silicon Foundries SE on the annual accounts as of and for the year ended December 31, 2020

Statutory auditor's responsibilities

In the context of our engagement and in accordance with the Belgian standard which is complementary to the International Standards on Auditing as applicable in Belgium, our responsibility is to verify, in all material respects, the board of directors' annual report on the annual accounts, certain documents to be filed in accordance with legal and regulatory requirements and compliance with certain requirements of the Companies' Code or, as from January 1, 2020, the Companies' and Associations' Code and with the Company's articles of association, and to report on these matters.

Aspects concerning the board of directors' annual report on the annual accounts

Based on specific work performed on the board of directors' annual report on the annual accounts, we are of the opinion that this report is consistent with the annual accounts for the same period and has been prepared in accordance with articles 3:5 and 3:6 of the Companies' and Associations' Code.

In the context of our audit of the annual accounts, we are also responsible for considering, in particular based on the knowledge gained throughout the audit, whether the board of directors' annual report on the annual accounts contains material misstatements, that is information incorrectly stated or misleading. In the context of the procedures carried out, we did not identify any material misstatements that we have to report to you.

The non-financial information required by article 3:6 §4 of the Companies' and Associations' Code has been included in the board of directors' annual report on the annual accounts. The Company has prepared this non-financial information based on Global Reporting Initiative ("GRI") standards. In accordance with art 3:75 §1, 1^st paragraph, 6° of the Companies' and Associations' Code, we do not comment on whether this non-financial information has been prepared in accordance with the mentioned GRI standards.

Information regarding the social balance sheet

The social balance sheet, which is to be filed with the National Bank of Belgium in accordance with article 3:12 §1 8° of the Companies' and Associations' Code, includes, with respect to form and content, the information required by law, including the information regarding salaries and training, and does not present any material inconsistencies with the information that we became aware of during the performance of our engagement.

Information about the independence

• Our audit firm and our network have not performed any engagement which is incompatible with the statutory audit of the annual accounts and our audit firm remained independent of the Company during the term of our mandate.
• The fees for the additional engagements which are compatible with the statutory audit of the annual accounts referred to in article 3:65 of the Companies' and Associations' Code were correctly stated and disclosed in the notes to the annual accounts.

Document Classification: KPMG Public

4

Statutory auditor's report to the general meeting of X-FAB Silicon Foundries SE on the annual accounts as of and for the year ended December 31, 2020

Other aspects

• Without prejudice to formal aspects of minor importance, the accounting records were maintained in accordance with the legal and regulatory requirements applicable in Belgium.
• The appropriation of results proposed to the general meeting complies with the legal provisions and the provisions of the articles of association.
• Except for complying with the provisions of article 3:10 of the Companies' and Associations' Code with respect to the filing of the 2019 annual accounts within 30 days after approval, we do not have to inform you of any other transaction undertaken or decision taken in breach of the Company's articles of association or the Companies' and Associations' Code.
• This report is consistent with our additional report to the audit committee on the basis of Article 11 of Regulation (EU) No 537/2014.

Hasselt, March 29, 2021

KPMG Bedrijfsrevisoren - Réviseurs d'Entreprises Statutory Auditor represented by

Herwig Carmans Bedrijsfrevisor / Réviseur d'Entreprises

5

Numbers of the joint industrial committees competent for the company:

STATEMENT OF THE PERSONS EMPLOYED

EMPLOYEES FOR WHOM THE COMPANY SUBMITTED A DIMONA DECLARATION OR WHO ARE RECORDED IN THE GENERAL PERSONNEL REGISTER

During the period Codes		Total	1. Men	2. Women
Average number of employees
Full-time	1001	1,5	1,5
Part-time	1002
Total in full-time equivalents (FTE)	1003	1,5	1,5
Number of actual hours worked
Full-time	1011	2.614	2.614
Part-time	1012
Total	1013	2.614	2.614
Personnel costs
Full-time	1021	162.728,20	162.728,20
Part-time	1022
Total	1023	162.728,20	162.728,20
Benefits in addition to wages	1033

During the preceding period Codes		P. Total	1P. Men	2P. Women
Average number of employees in FTE	1003	2,0	2,0
Number of actual hours worked	1013	3.754	3.754
Personnel costs	1023	170.919,72	170.919,72
Benefits in addition to wages	1033

EMPLOYEES FOR WHOM THE COMPANY SUBMITTED A DIMONA DECLARATION OR WHO ARE RECORDED IN THE GENERAL PERSONNEL REGISTER (continuation)

Codes		1. Full-time	2. Part-time	3. Total in full-time equivalents
At the closing date of the period
Number of employees	105	1		1,0
By nature of the employment contract
Contract for an indefinite period	110	1		1,0
Contract for a definite period	111
Contract for the execution of a specifically assigned work	112
Replacement contract	113
According to gender and study level
Men	120	1		1,0
primary education	1200
secondary education	1201
higher non-university education	1202
university education	1203	1		1,0
Women	121
primary education	1210
secondary education	1211
higher non-university education	1212
university education	1213
By professional category
Management staff	130
Salaried employees	134	1		1,0
Hourly employees	132
Other	133

HIRED TEMPORARY STAFF AND PERSONNEL PLACED AT THE DISPOSAL OF THE COMPANY

During the period	Codes	1. Hired temporary staff	2. Hired temporary staff and personnel placed at the company's disposal
Average number of persons employed	150
Number of actual hours worked	151
Costs to the company	152

LIST OF PERSONNEL MOVEMENTS DURING THE PERIOD

ENTRIES	Codes	1. Full-time	2. Part-time	3. Total in full-time equivalents
Number of employees for whom the company submitted a DIMONA declaration or who have been recorded in the general personnel register during the period	205
By nature of the employment contract
Contract for an indefinite period	210
Contract for a definite period	211
Contract for the execution of a specifically assigned work	212
Replacement contract	213

DEPARTURES	Codes	1. Full-time	2. Part-time	3. Total in full-time equivalents
Number of employees whose contract-termination date has been included in the DIMONA declaration or in the general personnel register during the period	305	1		1,0
By nature of the employment contract
Contract for an indefinite period	310	1		1,0
Contract for a definite period	311
Contract for the execution of a specifically assigned work .	312
Replacement contract	313
By reason of termination of contract
Retirement	340
Unemployment with extra allowance from enterprise	341
Dismissal	342
Other reason	343	1		1,0
Of which: the number of persons who continue to render services to the company at least half-time on a self-employment basis	350	1		1,0

INFORMATION ON TRAINING PROVIDED TO EMPLOYEES DURING THE PERIOD

Total of initiatives of formal professional training at the expense of the employer	Codes	Men	Codes	Women
Number of employees involved	5801		5811
Number of actual training hours	5802		5812
Net costs for the company	5803		5813
of which gross costs directly linked to training	58031		58131
of which contributions paid and payments to collective funds	58032		58132
of which grants and other financial advantages received (to deduct)	58033		58133
Total of initiatives of less formal or informal professional training at the expense of the employer
Number of employees involved	5821		5831
Number of actual training hours	5822		5832
Net costs for the company	5823		5833
Total of initial initiatives of professional training at the expense of the employer
Number of employees involved	5841		5851
Number of actual training hours	5842		5852
Net costs for the company	5843		5853