Dynex signs R&D Funding Arrangement


Lincoln, England, September 9th, 2010 - Dynex Power Inc., a leading specialist high power semiconductor company, today announced that its wholly owned subsidiary, Dynex Semiconductor Ltd., has reached an exciting, mutually beneficial agreement with its majority shareholder Zhuzhou CSR Times Electric Co., Ltd. to share the costs of carrying out Research and Development "R&D" projects for high power semiconductor devices at the "CSR Times Electric Power Semiconductor R&D Centre."

The R&D Centre, announced on May 13th 2010, was formed to bring together the existing power semiconductor R&D activities of Dynex and CSR Times Electric into a single centre of excellence, and is a department of Dynex Semiconductor located in Lincoln, UK. The R&D Centre is the centrepiece of the ambition that together the semiconductor operations of CSR Times Electric and Dynex will become a more major force in the world's semiconductor markets. 

Under the new agreement it is estimated that the costs of the joint R&D will be £7.77 million over a 40 month period, and it is agreed that CSR Times Electric will provide funding of 80% of the costs and that Dynex will contribute 20%. 

The R&D Centre is expected to concentrate on developing new products and technologies to meet the growing demand for power semiconductor products both in China and the rest of the world. Key market sectors targeted will be railway transportation, wind power, smart grids and electric cars; key products will be IGBT modules and high power thyristors. 

Dr. Paul Taylor, President and Chief Executive Officer said, "I am delighted to have reached agreement on the funding of the R&D Centre. Dynex strengths in power semiconductor technology development, engineering excellence and quality management, supported by our new bipolar and IGBT production lines, results in a fertile environment for R&D. Combining that with the resources of CSR Times Electric, their manufacturing strengths and access to market makes for an ideal combination and is an important step to bring our businesses closer together. The potential is impressive."

Bob Lockwood, Finance Director and Chief Financial Officer, added, "The R&D centre gives us an economy of scale we have never enjoyed. By combining the key development projects and key engineers from both Dynex and CSR Times Electric under one roof we can share knowledge, prevent duplication and shorten time to market, whilst at the same time we reduce our combined overheads. Furthermore the timing is ideal. We anticipate significant revenue growth in the next few years due to the recent investment by Dynex in new bipolar and IGBT production lines. However, longer term sustained growth will result from the new technology and new products to be developed by the R&D centre."