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UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





Form 10-K


|           |  |                                                                                             
|---------- |  | --------------------------------------------------------------------------------------------
|(Mark One) |  |                                                                                             
|þ          |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934    
|           |  | For the Fiscal Year Ended December 31, 2005                                                 
|           |  | or                                                                                          
|o          |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
|           |  | For the transition period
    from           to                                             

Commission File Number 000-50397


AMIS Holdings, Inc.


(Exact name of registrant as specified in its charter)


|                                                                           |  |                                                   
|-------------------------------------------------------------------------- |  | --------------------------------------------------
|Delaware(State or other jurisdiction of
    incorporation or organization) |  | 51-0309588(I.R.S. Employer
    Identification No.)
|                                                                          
|2300 Buckskin Road Pocatello, ID(Address of principal executive offices)   |  | 83201(Zip Code)                                   

Registrants telephone number, including area code


(208) 233-4690


Securities registered pursuant to Section 12(b) of the
Act:


None


Securities registered pursuant to Section 12 (g) of
the Act:


Common stock, $0.01 par value


o þ


o þ


þ o


S-K 10-K 10-K. o


12b-2


o þ o


12b-2 o þ






DOCUMENTS INCORPORATED BY REFERENCE












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##### 










Table of Contents




Page


|              |  |                                                                                                                      |    |            |    |  |    | 
|------------- |  | -------------------------------------------------------------------------------------------------------------------- | -- | ---------- | -- |  | -- | 
|PART I:       |  |                                                                                                                      | 1  |           
|Item 1.       |  | BUSINESS                                                                                                             |    |            | 1  | 
|Item 1A.      |  | RISK FACTORS                                                                                                         |    |            | 11 | 
|Item 1B.      |  | UNRESOLVED STAFF COMMENTS                                                                                            |    |            | 22 | 
|Item 2.       |  | PROPERTIES                                                                                                           |    |            | 22 | 
|Item 3.       |  | LEGAL PROCEEDINGS                                                                                                    |    |            | 22 | 
|Item 4.       |  | SUBMISSION OF MATTERS TO A VOTE OF SECURITY
    HOLDERS                                                              |    |            | 23 | 
|PART II:      |  |                                                                                                                      | 23 |           
|Item 5.       |  | MARKET FOR REGISTRANTS COMMON EQUITY,
    RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY
    SECURITIES |    |            | 23 | 
|Item 6.       |  | SELECTED FINANCIAL DATA                                                                                              |    |            | 24 | 
|Item 7.       |  | MANAGEMENTS DISCUSSION AND ANALYSIS
    OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS                            |    |            | 25 | 
|Item 7A.      |  | QUANTITATIVE AND QUALITATIVE DISCLOSURES
    ABOUT MARKET RISK                                                       |    |            | 39 | 
|Item 8.       |  | FINANCIAL STATEMENTS AND SUPPLEMENTARY
    DATA                                                                      |    |            | 41 | 
|Item 9.       |  | CHANGES IN AND DISAGREEMENTS WITH
    ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE                             |    |            | 83 | 
|Item 9A.      |  | CONTROLS AND PROCEDURES                                                                                              |    |            | 83 | 
|Item 9B.      |  | OTHER INFORMATION                                                                                                    |    |            | 84 | 
|PART III:     |  |                                                                                                                      | 84 |           
|Item 10.      |  | DIRECTORS AND EXECUTIVE OFFICERS OF THE
    REGISTRANT                                                               |    |            | 84 | 
|Item 11.      |  | EXECUTIVE COMPENSATION                                                                                               |    |            | 85 | 
|Item 12.      |  | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
    OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS                   |    |            | 85 | 
|Item 13.      |  | CERTAIN RELATIONSHIPS AND RELATED
    TRANSACTIONS                                                                   |    |            | 85 | 
|Item 14.      |  | PRINCIPAL ACCOUNTANT FEES AND SERVICES                                                                               |    |            | 85 | 
|PART IV:      |  |                                                                                                                      | 85 |           
|Item 15.      |  | EXHIBITS AND FINANCIAL STATEMENT
    SCHEDULES                                                                       |    |            | 85 | 
|              |  |                                                                                                                      |    | SIGNATURES |    |  | 86 | 
|EXHIBIT 3.1  
|EXHIBIT 10.6 
|EXHIBIT 10.24
|EXHIBIT 10.31
|EXHIBIT 10.33
|EXHIBIT 10.34
|EXHIBIT 10.38
|EXHIBIT 21.1 
|EXHIBIT 23.1 
|EXHIBIT 31.1 
|EXHIBIT 31.2 
|EXHIBIT 32.1 
|EXHIBIT 32.2 





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##### Table of Contents






PART I







|        |         
|------- | --------
|ITEM 1. | BUSINESS

DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS


This annual report on
Form 10-K contains
forward-looking statements. In some cases, you can identify
forward-looking statements by terminology such as
may, will, should,
expects, plans, target,
anticipates, believes,
estimates, predicts,
potential, continues or the negative of
these terms or other comparable terminology. These statements
are only predictions and speak only as of the date of this
report. These forward-looking statements are based largely on
our current expectations and are subject to a number of risks
and uncertainties. Actual results could differ materially from
these forward-looking statements. Factors that could cause or
contribute to such differences include the availability of
required capacity at our key subcontractors, manufacturing
underutilization, changes in the conditions affecting our target
markets, fluctuations in customer demand, raw material costs,
exchange rates, timing and success of new products, competitive
conditions in the semiconductor industry risks associated with
international operations, general economic and political
uncertainty, conditions in the semiconductor industry, the other
factors identified under Risk Factor in Item 1A
and other risks and uncertainties indicated from time to time in
our filings with the U.S. Securities and Exchange
Commission (SEC). In light of these risks and uncertainties,
there can be no assurance that the matters referred to in the
forward-looking statements contained in this annual report will
in fact occur. We do not intend to publicly release any
revisions to these forward-looking statements to reflect events
or circumstances after the date hereof or to reflect the
occurrence of unanticipated events.


Overview




time-to


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The Company and History






Products and Services






| |                                                             
| | ------------------------------------------------------------
| | Integrated Mixed Signal Products (78.1% of 2005
    revenue)



Sensor Interfaces.


2



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Controls.


Communications.


Mixed Signal Foundry Services.




| |                                                    
| | ---------------------------------------------------
| | Structured Digital Products (21.9% of 2005 revenue)



time-to


tm tm tm


3



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tm


tm time-to tm




| |                                    
| | -----------------------------------
| | Customers, Markets and Applications



|                               |  |                                                                               |  |                                                                            |  |                                                               |  |                                                          |  |                                                              |  |                                          
|------------------------------ |  | ----------------------------------------------------------------------------- |  | -------------------------------------------------------------------------- |  | ------------------------------------------------------------- |  | -------------------------------------------------------- |  | ------------------------------------------------------------ |  | -----------------------------------------
|                               |  |                                                                               |  |                                                                            |  |                                                               |  |                                                          |  |                                                              |  | Computing,                               
|                               |  |                                                                               |  |                                                                            |  |                                                               |  |                                                          |  |                                                              |  | Consumer and                             
|End Markets                    |  | Automotive                                                                    |  | Industrial                                                                 |  | Medical                                                       |  | Communications                                           |  | Military                                                     |  | Other                                    
|                               |  |                                                                               |  |                                                                            |  |                                                               |  |                                                          |  |                                                              |  |                                          
|Percentage of revenue for 2005 |  | 26.2%                                                                         |  | 21.7%                                                                      |  | 17.7%                                                         |  | 11.5%                                                    |  | 10.1%                                                        |  | 12.8%                                    
|Applications                   |  | In-vehicle sensors Engine management Headlight controls
    Stability control |  | Industrial networking Circuit protection Wireless security White
    goods |  | Medical imaging Pacemakers Blood glucose monitor Hearing aids |  | Broadband analog Wireless base stations Switches Routers |  | Cockpit displays Guidance systems Munitions Infrared imaging |  | Printers Power management Storage systems



Sales, Marketing and Distribution








4



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Research and Development






Intellectual Property








5



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| |   |                                                                                                                                 
| | - | --------------------------------------------------------------------------------------------------------------------------------
| |  | discontinue using certain process technologies which could cause
    us to stop manufacturing certain semiconductors;           
|
| |  | pay substantial monetary damages;                                                                                               
|
| |  | seek to develop non-infringing technologies, which may not be
    feasible; or                                                  
|
| |  | seek to acquire licenses to the infringed technology which may
    not be available on commercially reasonable terms, if at all.



Manufacturing


4-inch


5-inch 8-inch 4-inch 6-inch


tm tm tm


X-Fab,


6



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|           |  |                                                             |  |           |         |     |          |  |    | 
|---------- |  | ----------------------------------------------------------- |  | --------- | ------- | --- | -------- |  | -- | 
|           |  |                                                             |  | Installed |         |     |         
|           |  |                                                             |  | Annual    |         |     |         
|           |  |                                                             |  | Equipment |         |     | Wafer    | 
|Location   |  | Products/Functions                                          |  | Capacity  |         |     | Diameter | 
|           |  |                                                             |  |           |         |     |          | 
|Pocatello  |  | CMOS Wafers, 0.6 micron and above, 2 to 3 metal levels      |  |           | 235,000 |     |          |  | 5 | 
|Pocatello  |  | CMOS Wafers, 0.35 micron to 0.8 micron, 2 to 5 metal levels |  |           | 73,000  | (1) |          |  | 8 | 
|Oudenaarde |  | BiCMOS Wafers, 1 micron, 2 metal levels                     |  |           | 130,000 |     |          |  | 4 | 
|Oudenaarde |  | BiCMOS Wafers, 0.35 micron to 1 micron, 2 to 5 metal levels |  |           | 94,000  | (2) |          |  | 6 | 






|    |                                                                                                                             
|--- | ----------------------------------------------------------------------------------------------------------------------------
|(1) | By adding additional equipment, production capacity at our
    8-inch fab could be
    increased to 225,000 wafers per year.
|   
|(2) | By adding additional equipment, production capacity at our
    6-inch fab could be
    increased to 175,000 wafers per year.





Backlog




7



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Seasonality




Competition








8



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Employees




Environmental Matters






clean-up


9



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Executive Officers




|                   |  |     |    |  |       |                                                   
|------------------ |  | --- | -- |  | ----- | --------------------------------------------------
|Name               |  | Age |    |  | Title
|                   |  |     |    |  |      
|Executive Officers |  |     |    |  |       |                                                   
|Christine King     |  |     | 56 |  |       | President and Chief Executive Officer             
|Walter Mattheus    |  |     | 58 |  |       | Senior Vice President and Chief Operating Officer 
|David A. Henry     |  |     | 44 |  |       | Senior Vice President and Chief Financial Officer 
|Jon Stoner         |  |     | 49 |  |       | Senior Vice President and Chief Technology Officer
|Charlie Lesko      |  |     | 47 |  |       | Senior Vice President, Sales & Marketing          

Christine King, President, Chief Executive Officer and
Director.


Walter Mattheus, Senior Vice President and Chief Operating
Officer.


David A. Henry, Senior Vice President and Chief Financial
Officer.


Jon Stoner, Senior Vice President and Chief Technology
Officer.


Charlie Lesko, Senior Vice President, Sales and
Marketing.


10



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Available Information


www.sec.gov


10-K, 10-Q 8-K, www.amis.com/investor 
relations/







|         |             
|-------- | ------------
|ITEM 1A. | RISK FACTORS

Factors that May Affect our Business and Future Results






| |                                                                                                                                                                                                                                                                                                   
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If we are unable to improve and maintain the quality of
    our internal control over financial reporting, a weakness could
    materially and adversely affect our ability to provide timely
    and accurate information about our company, which could harm our
    reputation and share price.





11



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| |                                                                                                                                                       
| | ------------------------------------------------------------------------------------------------------------------------------------------------------
| | We rely on packaging subcontractors, which reliance could
    have a material adverse effect on our results of operations and
    financial condition.





| |                                                                                                                                                                                                 
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our success depends on efficient utilization of our
    manufacturing capacity, and a failure could have a material
    adverse effect on our results of operations and financial
    condition.





| |                                                                                     
| | ------------------------------------------------------------------------------------
| | We could be adversely affected by manufacturing
    interruptions or reduced yields.

4-inch


12



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| |                                                                                                                                                                                                                                                  
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We may face product warranty or product liability claims
    that are disproportionately higher than the value of the
    products involved, which could have a material adverse effect on
    our results of operations and financial condition.







| |                                                                                                                                                                                                                                        
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The cyclical nature of the semiconductor industry may
    limit our ability to maintain or increase revenue and profit
    levels, which could have a material adverse effect on our
    results of operations and financial condition.





| |                                                                                                                                                      
| | -----------------------------------------------------------------------------------------------------------------------------------------------------
| | Due to our relatively fixed cost structure, our margins
    will be adversely affected if we experience a significant
    decline in customer orders.



13



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| |                                                                                                                                                                                                              
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | A significant portion of our revenue comes from a
    relatively limited number of customers and devices, the loss of
    which could adversely affect our results of operations and
    financial condition.





| |                                                                                                                                                                         
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We may not be able to sell the inventories of products on
    hand, which could have a material adverse effect on our results
    of operations and financial condition.

4-inch




| |                                                                                                                                                           
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------
| | We may need to incur impairment and other restructuring
    charges, which could materially affect our results of operations
    and financial conditions.

4-inch


14



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| |                                                                                                                                                                                                           
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We depend on growth in the end markets that use our
    products, and a lack of growth in these markets could have a
    material adverse effect on our results of operations and
    financial condition.





| |   |                                                                                                                                                               
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | recessionary periods or periods of reduced growth in our
    customers markets;                                                                              
|
| |  | the inability of our customers to adapt to rapidly changing
    technology and evolving industry standards;                                                   
|
| |  | the potential that our customers products may become
    obsolete or the failure of our customers products to gain
    widespread commercial acceptance; and
|
| |  | the possibility of reduced consumer demand for our
    customers products.                                                                                   



| |                                                                                                                                                                                                                                                                                                                                      
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our ability to compete successfully and achieve future
    growth will depend, in part, on our ability to protect our
    proprietary technology, as well as our ability to operate
    without infringing the proprietary rights of others, and our
    inability to do so could have a material adverse effect on our
    business.









15



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| |   |                                                                                                                                 
| | - | --------------------------------------------------------------------------------------------------------------------------------
| |  | discontinue using certain process technologies which could cause
    us to stop manufacturing certain semiconductors;           
|
| |  | pay substantial monetary damages;                                                                                               
|
| |  | seek to develop non-infringing technologies, which may not be
    feasible; or                                                  
|
| |  | seek to acquire licenses to the infringed technology which may
    not be available on commercially reasonable terms, if at all.







| |                                                                                                                                                                             
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our industry is highly competitive, and a failure to
    successfully compete could have a material adverse effect on our
    results of operations and financial condition.





| |   |                                                                                                                                      
| | - | -------------------------------------------------------------------------------------------------------------------------------------
| |  | our ability to offer cost-effective products on a timely basis
    using our technologies;                                           
|
| |  | our ability to accurately identify emerging technological trends
    and demand for product features and performance characteristics;
|
| |  | product introductions by our competitors;                                                                                            
|
| |  | our ability to adopt or adapt to emerging industry standards;                                                                        
|
| |  | the number and nature of our competitors in a given
    market; and                                                                  
|
| |  | general market and economic conditions.                                                                                              





| |                                                                                                                                                     
| | ----------------------------------------------------------------------------------------------------------------------------------------------------
| | We depend on successful technological advances for growth,
    and a lack of such advances could have a material adverse effect
    on our business.



16



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| |                                                                                                                                                                                                      
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our customers may cancel their orders, change production
    quantities or delay production, which could have a material
    adverse effect on our results of operations and financial
    condition.





| |                                                                                                                  
| | -----------------------------------------------------------------------------------------------------------------
| | We depend on our key personnel, and the loss of these
    personnel could have a material effect on our business.





| |                                                                                                                                                                              
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We are dependent on successful outsourcing relationships,
    which dependence could have a material adverse effect on our
    results of operations and financial condition.





| |                                                                                                                                                  
| | -------------------------------------------------------------------------------------------------------------------------------------------------
| | We rely on test subcontractors, which reliance could have
    a material adverse effect on our results of operations and
    financial condition.





| |                                                                                                                                                                                                                 
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We depend on successful parts and materials procurement
    for our manufacturing processes, which dependence could have a
    material adverse effect on our results of operations and
    financial condition.



17



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| |                                                                                            
| | -------------------------------------------------------------------------------------------
| | To service our consolidated indebtedness, we will require
    a significant amount of cash.





| |   |                                                                                             
| | - | --------------------------------------------------------------------------------------------
| |  | the cyclical nature of both the semiconductor industry and the
    markets for our products;
|
| |  | fluctuations in manufacturing yields;                                                       
|
| |  | the timing of introduction of new products;                                                 
|
| |  | the timing of customer orders;                                                              
|
| |  | changes in the mix of products sold and the end markets into
    which they are sold;       
|
| |  | the extent of utilization of manufacturing capacity;                                        
|
| |  | the length of the lifecycle of the semiconductors we are
    manufacturing;                 
|
| |  | availability of supplies and raw materials;                                                 
|
| |  | price competition and other competitive factors; and                                        
|
| |  | work stoppages, especially at our fabs in Belgium.                                          





| |                                                                                                                                                                                                                                                                            
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We may incur costs to engage in future acquisitions of
    companies or technologies and the anticipated benefits of those
    acquisitions may never be realized, which could have a material
    adverse effect on our results of operations and financial
    condition.





| |   |                                                                                                                                                                                                                                   
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | potential inability to maximize our financial or strategic
    position, which could result in impairment charges if the
    acquired company or assets are later worth less than the amount
    paid for them in the acquisition;
|
| |  | difficulties in assimilating the operations and products of an
    acquired business or in realizing projected efficiencies, cost
    savings and revenue synergies;                                                              
|
| |  | entry into markets or countries in which we may have limited or
    no experience;                                                                                                                                                

18



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| |   |                                                                                                                                                                                                                       
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | potential increases in our indebtedness and contingent
    liabilities and potential unknown liabilities associated with
    any such acquisition;                                                                    
|
| |  | diversion of managements attention due to transition or
    integration issues;                                                                                                                                      
|
| |  | difficulties in managing multiple geographic locations;                                                                                                                                                               
|
| |  | cultural impediments that could prevent establishment of good
    employee relations, difficulties in retaining key personnel of
    the acquired business and potential litigation from terminated
    employees; and
|
| |  | difficulties in maintaining uniform standards, controls and
    procedures and information systems.                                                                                                                   







| |                                                                                                                                                                            
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We may need to raise additional capital that may not be
    available, which could have a material adverse effect on our
    results of operations and financial condition.





| |                                                                                           
| | ------------------------------------------------------------------------------------------
| | Our substantial consolidated indebtedness could adversely
    affect our financial health.

3 4


19



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| |   |                                                                                                                                                                                                                                                                                                                                        
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | will require our operating subsidiaries to dedicate a
    substantial portion of cash flow from operations to payments in
    respect of indebtedness, thereby reducing the availability of
    cash flow to fund working capital, capital expenditures,
    research and development efforts and other general corporate
    purposes;
|
| |  | could increase the amount of our consolidated interest expense
    because some of our borrowings are at variable rates of
    interest, which, if interest rates increase, could result in
    higher interest expense;                                                                                                               
|
| |  | will increase our vulnerability to adverse general economic or
    industry conditions;                                                                                                                                                                                                                                                
|
| |  | could limit our flexibility in planning for, or reacting to,
    changes in our business or the industry in which we operate;                                                                                                                                                                                                          
|
| |  | could restrict us from making strategic acquisitions,
    introducing new technologies or exploiting business
    opportunities;                                                                                                                                                                                                       
|
| |  | could place us at a competitive disadvantage compared to our
    competitors that have less debt; and                                                                                                                                                                                                                                  
|
| |  | could limit, along with the financial and other restrictive
    covenants in our indebtedness, among other things, our ability
    to borrow additional funds or dispose of assets.                                                                                                                                                    





| |                                                                                                    
| | ---------------------------------------------------------------------------------------------------
| | Restrictions imposed by the senior credit facilities limit
    our ability to take certain actions.







| |                                                                                                                                                                          
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We could incur material costs to comply with environmental
    laws, which could have a material adverse effect on our results
    of operations and financial condition.





20



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| |                                                                                                                                                                                                       
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our international sales and operations expose us to
    various political and economic risks, which could have a
    material adverse effect on our results of operations and
    financial condition.





| |   |                                                                                                                                                 
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------
| |  | greater difficulty in staffing and managing foreign operations;                                                                                 
|
| |  | greater risk of uncollectible accounts;                                                                                                         
|
| |  | longer collection cycles;                                                                                                                       
|
| |  | logistical and communications challenges;                                                                                                       
|
| |  | potential adverse changes in laws and regulatory practices,
    including export license requirements, trade barriers, tariffs
    and tax laws;
|
| |  | changes in labor conditions;                                                                                                                    
|
| |  | burdens and costs of compliance with a variety of foreign laws;                                                                                 
|
| |  | political and economic instability;                                                                                                             
|
| |  | increases in duties and taxation;                                                                                                               
|
| |  | greater difficulty in protecting intellectual property; and                                                                                     
|
| |  | general economic and political conditions in these foreign
    markets.                                                                         





| |                                                                                                                                                                        
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We are subject to risks associated with currency
    fluctuations, which could have a material adverse effect on our
    results of operations and financial condition.



21



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| |                                                                                                                                                                                             
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We are exposed to foreign labor laws due to our
    operational presence in Europe, which could have a material
    adverse effect on our results of operations and financial
    condition.








|         |                          
|-------- | -------------------------
|ITEM 1B. | UNRESOLVED STAFF COMMENTS








|        |           
|------- | ----------
|ITEM 2. | PROPERTIES
















|        |                  
|------- | -----------------
|ITEM 3. | LEGAL PROCEEDINGS



22



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|        |                                                    
|------- | ---------------------------------------------------
|ITEM 4. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS






PART II







|        |                                                                                                                     
|------- | --------------------------------------------------------------------------------------------------------------------
|ITEM 5. | MARKET FOR REGISTRANTS COMMON EQUITY, RELATED
    STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY
    SECURITIES



|                                                                  |  |      |       |  |     |   |       | 
|----------------------------------------------------------------- |  | ---- | ----- |  | --- | - | ----- | 
|                                                                  |  | High |       |  | Low |  
|                                                                  |  |      |       |  |     |  
|2005                                                              |  |      |       |  |     |   |       | 
|Fourth Quarter (from October 2, 2005 to December 31,
    2005)    |  | $    | 12.19 |  |     | $ | 9.89  | 
|Third Quarter (from July 3, 2005 to October 1, 2005)              |  | $    | 14.21 |  |     | $ | 10.68 | 
|Second Quarter (from April 3, 2005 to July 2, 2005)               |  | $    | 13.95 |  |     | $ | 10.15 | 
|First Quarter (from January 1, 2005 to April 2, 2005)             |  | $    | 16.45 |  |     | $ | 9.59  | 
|2004                                                              |  |      |       |  |     |   |       | 
|Fourth Quarter (from September 26, 2004 to
    December 31, 2004) |  | $    | 17.26 |  |     | $ | 12.90 | 
|Third Quarter (from June 27, 2004 to September 25,
    2004)      |  | $    | 17.40 |  |     | $ | 11.01 | 
|Second Quarter (from March 28, 2004 to June 26, 2004)             |  | $    | 18.52 |  |     | $ | 14.25 | 
|First Quarter (from January 1, 2004 to March 27, 2004)            |  | $    | 20.20 |  |     | $ | 15.22 | 





Dividend Policy




23



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|        |                        
|------- | -----------------------
|ITEM 6. | SELECTED FINANCIAL DATA



|                                                       |  |                                                         |       |   |      |   |       |      |  |   |       |   |  |      |        |   |  |   |        |  
|------------------------------------------------------ |  | ------------------------------------------------------- | ----- | - | ---- | - | ----- | ---- |  | - | ----- | - |  | ---- | ------ | - |  | - | ------ | -
|                                                       |  | Years Ended December 31,                                |      
|                                                       |  |                                                         |      
|                                                       |  | 2005                                                    |       |   | 2004 |   |       | 2003 |  |   | 2002  |   |  | 2001 |       
|                                                       |  |                                                         |       |   |      |   |       |      |  |   |       |   |  |      |       
|                                                       |  | (In millions, except per share and percent information) |      
|Consolidated Statement of Operations Data:             |  |                                                         |       |   |      |   |       |      |  |   |       |   |  |      |        |   |  |   |        |  
|Revenue                                                |  | $                                                       | 503.6 |   |      | $ | 517.3 |      |  | $ | 454.1 |   |  | $    | 345.3  |   |  | $ | 326.5  |  
|Gross profit                                           |  |                                                         | 237.2 |   |      |   | 246.3 |      |  |   | 198.8 |   |  |      | 130.3  |   |  |   | 140.1  |  
|Net income (loss)                                      |  |                                                         | 20.6  |   |      |   | 52.4  |      |  |   | (0.4  | ) |  |      | 5.1    |   |  |   | 12.7   |  
|Net income (loss) attributable to common stockholders  |  | $                                                       | 20.6  |   |      | $ | 52.4  |      |  | $ | (46.7 | ) |  | $    | (57.4  | ) |  | $ | (34.9  | )
|Basic net income (loss) per common share               |  | $                                                       | 0.24  |   |      | $ | 0.63  |      |  | $ | (0.84 | ) |  | $    | (1.24  | ) |  | $ | (0.76  | )
|                                                       |  |                                                         |       |   |      |   |       |      |  |   |       |   |  |      |       
|Fully diluted net income (loss) per common share       |  | $                                                       | 0.23  |   |      | $ | 0.60  |      |  | $ | (0.84 | ) |  | $    | (1.24  | ) |  | $ | (0.76  | )
|                                                       |  |                                                         |       |   |      |   |       |      |  |   |       |   |  |      |       
|Consolidated Balance Sheet Data (end of the period):   |  |                                                         |       |   |      |   |       |      |  |   |       |   |  |      |        |   |  |   |        |  
|Cash                                                   |  | $                                                       | 96.7  |   |      | $ | 161.7 |      |  | $ | 119.1 |   |  | $    | 62.2   |   |  | $ | 28.7   |  
|Accounts receivable, net                               |  |                                                         | 99.9  |   |      |   | 78.6  |      |  |   | 73.6  |   |  |      | 66.0   |   |  |   | 36.2   |  
|Inventories                                            |  |                                                         | 64.3  |   |      |   | 52.2  |      |  |   | 45.6  |   |  |      | 39.4   |   |  |   | 26.0   |  
|Total assets                                           |  |                                                         | 739.7 |   |      |   | 643.2 |      |  |   | 550.1 |   |  |      | 502.5  |   |  |   | 384.3  |  
|Long-term liabilities                                  |  |                                                         | 8.2   |   |      |   | 2.4   |      |  |   | 0.4   |   |  |      | 3.1    |   |  |   | 3.4    |  
|Long-term debt, including current portion              |  |                                                         | 317.9 |   |      |   | 253.5 |      |  |   | 254.7 |   |  |      | 160.1  |   |  |   | 173.3  |  
|Series A Senior Redeemable Preferred Stock             |  |                                                         |      |   |      |   |      |      |  |   |      |   |  |      | 233.7  |   |  |   | 204.2  |  
|Series B Junior Redeemable Convertible Preferred Stock |  |                                                         |      |   |      |   |      |      |  |   |      |   |  |      | 190.5  |   |  |   | 164.9  |  
|Series C Senior Redeemable Preferred Stock             |  |                                                         |      |   |      |   |      |      |  |   |      |   |  |      | 79.3   |   |  |   |       |  
|Total stockholders equity (deficit)                   |  |                                                         | 298.7 |   |      |   | 286.1 |      |  |   | 205.0 |   |  |      | (240.4 | ) |  |   | (189.2 | )
|Other Financial Data:                                  |  |                                                         |       |   |      |   |       |      |  |   |       |   |  |      |        |   |  |   |        |  
|Gross profit margin                                    |  |                                                         | 47.1  | % |      |   | 47.6  | %    |  |   | 43.8  | % |  |      | 37.7   | % |  |   | 42.9   | %
|Research and development                               |  | $                                                       | 87.4  |   |      | $ | 77.2  |      |  | $ | 70.2  |   |  | $    | 52.1   |   |  | $ | 42.1   |  
|Depreciation and amortization                          |  | $                                                       | 51.1  |   |      | $ | 43.8  |      |  | $ | 44.8  |   |  | $    | 47.0   |   |  | $ | 44.1   |  
|Capital expenditures                                   |  | $                                                       | 34.5  |   |      | $ | 32.4  |      |  | $ | 26.6  |   |  | $    | 22.0   |   |  | $ | 20.7   |  
|Operating cash flow                                    |  | $                                                       | 59.5  |   |      | $ | 96.2  |      |  | $ | 70.7  |   |  | $    | 81.1   |   |  | $ | 42.6   |  

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|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|ITEM 7. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
    CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with,
and is qualified in its entirety by reference to, the attached
consolidated financial statements. Except for the historical
information contained herein, the discussions in this section
contain forward-looking statements that involve risks and
uncertainties. Actual results could differ materially from those
discussed below due to a number of factors, including the
factors identified under Risk Factors in
Item 1A or elsewhere in this report, and other risks and
uncertainties indicated from time to time in our filings with
the SEC.


Overview










25



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Critical Accounting Policies








| |                    
| | -------------------
| | Revenue Recognition





percentage-of


percentage-of cost-to percentage-of


26



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percentage-of






| |            
| | -----------
| | Inventories



first-in,




| |                                                    
| | ---------------------------------------------------
| | Property, Plant and Equipment and Intangible Assets





| |         
| | --------
| | Goodwill



27



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| |             
| | ------------
| | Income Taxes





| |              
| | -------------
| | Stock Options



28



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out-of


Results of Operations




Statement of Operations Data:


|                                     |                                                       |                          |       |       |      |  |       |      |    |   |       |       |   |  |       |      |    |   |       |       |   |  |       |      |   
|------------------------------------ | ----------------------------------------------------- | ------------------------ | ----- | ----- | ---- |  | ----- | ---- | -- | - | ----- | ----- | - |  | ----- | ---- | -- | - | ----- | ----- | - |  | ----- | ---- | --
|                                     |                                                       | Years Ended December 31, |      
|                                     |                                                       |                          |      
|                                     |                                                       | 2005                     |       |       | 2004 |  |       | 2003 |   
|                                     |                                                       |                          |       |       |      |  |       |      |   
|                                     |                                                       | (Dollars in Millions)    |      
|Revenue                              |                                                       | $                        | 503.6 |       |      |  | 100.0 | %    |    | $ | 517.3 |       |   |  | 100.0 | %    |    | $ | 454.1 |       |   |  | 100.0 | %   
|Gross profit                         |                                                       |                          | 237.2 |       |      |  | 47.1  | %    |    |   | 246.3 |       |   |  | 47.6  | %    |    |   | 198.8 |       |   |  | 43.8  | %   
|Operating expenses:                  |                                                       |                          |       |       |      |  |       |      |    |   |       |       |   |  |       |      |    |   |       |       |   |  |       |     
|                                     | Research and development                              |                          |       | 87.4  |      |  |       | 17.4 | %  |   |       | 77.2  |   |  |       | 14.9 | %  |   |       | 70.2  |   |  |       | 15.5 | % 
|                                     | Marketing and selling                                 |                          |       | 39.1  |      |  |       | 7.8  | %  |   |       | 43.0  |   |  |       | 8.3  | %  |   |       | 37.8  |   |  |       | 8.3  | % 
|                                     | General and administrative                            |                          |       | 28.5  |      |  |       | 5.7  | %  |   |       | 28.7  |   |  |       | 5.5  | %  |   |       | 22.7  |   |  |       | 5.0  | % 
|                                     | Amortization of acquisition-related intangible assets |                          |       | 9.0   |      |  |       | 1.8  | %  |   |       | 1.3   |   |  |       | 0.3  | %  |   |       | 4.8   |   |  |       | 1.1  | % 
|                                     | In-process research and development                   |                          |       | 0.8   |      |  |       | 0.2  | %  |   |       | 1.5   |   |  |       | 0.3  | %  |   |       |      |   |  |       | 0.0  | % 
|                                     | Restructuring and impairment charges                  |                          |       | 5.3   |      |  |       | 1.1  | %  |   |       | 7.9   |   |  |       | 1.5  | %  |   |       | 21.7  |   |  |       | 4.8  | % 
|                                     | Nonrecurring charges                                  |                          |       |      |      |  |       | 0.0  | %  |   |       |      |   |  |       | 0.0  | %  |   |       | 11.4  |   |  |       | 2.5  | % 
|                                     |                                                       |                          |       |       |      |  |       |      |    |   |       |       |   |  |       |      |    |  
|                                     | Total operating expenses                              |                          |       | 170.1 |      |  |       | 33.8 | %  |   |       | 159.6 |   |  |       | 30.9 | %  |   |       | 168.6 |   |  |       | 37.1 | % 
|                                     |                                                       |                          |       |       |      |  |       |      |    |   |       |       |   |  |       |      |    |  
|Operating income                     |                                                       |                          | 67.1  |       |      |  | 13.3  | %    |    |   | 86.7  |       |   |  | 16.8  | %    |    |   | 30.2  |       |   |  | 6.6   | %   
|                                     |                                                       |                          |       |       |      |  |       |      |    |   |       |       |   |  |       |      |    |  
|Other income (expense):              |                                                       |                          |       |       |      |  |       |      |    |   |       |       |   |  |       |      |    |   |       |       |   |  |       |     
|                                     | Interest expense, net                                 |                          |       | (13.8 | )    |  |       | (2.7 | )% |   |       | (18.6 | ) |  |       | (3.6 | )% |   |       | (22.5 | ) |  |       | (5.0 | )%
|                                     | Other expense, net                                    |                          |       | (34.7 | )    |  |       | (6.9 | )% |   |       | (0.7  | ) |  |       | (0.1 | )% |   |       | (16.2 | ) |  |       | (3.6 | )%
|                                     |                                                       |                          |       |       |      |  |       |      |    |   |       |       |   |  |       |      |    |  
|Income (loss) before income taxes    |                                                       |                          | 18.6  |       |      |  | 3.7   | %    |    |   | 67.4  |       |   |  | 13.0  | %    |    |   | (8.5  | )     |   |  | (1.9  | )%  
|Provision (benefit) for income taxes |                                                       |                          | (2.0  | )     |      |  | (0.4  | )%   |    |   | 15.0  |       |   |  | 2.9   | %    |    |   | (8.1  | )     |   |  | (1.8  | )%  
|                                     |                                                       |                          |       |       |      |  |       |      |    |   |       |       |   |  |       |      |    |  
|Net income (loss)                    |                                                       | $                        | 20.6  |       |      |  | 4.1   | %    |    | $ | 52.4  |       |   |  | 10.1  | %    |    | $ | (0.4  | )     |   |  | (0.1  | )%  
|                                     |                                                       |                          |       |       |      |  |       |      |    |   |       |       |   |  |       |      |    |  

29



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Year Ended December 31, 2005 Compared With Year Ended
December 31, 2004




| |        
| | -------
| | Revenue













|              |  |      |      |   |      |  |      |  
|------------- |  | ---- | ---- | - | ---- |  | ---- | -
|              |  | 2005 |      |   | 2004 | 
|              |  |      |      |   |      | 
|North America |  |      | 42.5 | % |      |  | 42.1 | %
|Europe        |  |      | 37.8 | % |      |  | 41.3 | %
|Asia          |  |      | 19.7 | % |      |  | 16.6 | %



| |             
| | ------------
| | Gross Profit



30



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| |                   
| | ------------------
| | Operating Expenses















| |                 
| | ----------------
| | Operating Income





31



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| |                     
| | --------------------
| | Net Interest Expense





| |              
| | -------------
| | Other Expense





| |             
| | ------------
| | Income Taxes



Year Ended December 31, 2004 Compared With Year Ended
December 31, 2003




| |        
| | -------
| | Revenue





32



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tm




|              |  |      |      |   |      |  |      |  
|------------- |  | ---- | ---- | - | ---- |  | ---- | -
|              |  | 2004 |      |   | 2003 | 
|              |  |      |      |   |      | 
|North America |  |      | 42.1 | % |      |  | 40.9 | %
|Europe        |  |      | 41.3 | % |      |  | 40.7 | %
|Asia          |  |      | 16.6 | % |      |  | 18.4 | %



| |             
| | ------------
| | Gross Profit





| |                   
| | ------------------
| | Operating Expenses









33



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| |                 
| | ----------------
| | Operating Income









| |                     
| | --------------------
| | Net Interest Expense



34



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| |              
| | -------------
| | Other Expense





| |             
| | ------------
| | Income Taxes







| |                                
| | -------------------------------
| | Liquidity and Capital Resources







35



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3 4


3 4




3 4




| |                     
| | --------------------
| | Capital Expenditures



36



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Contractual Obligations and Contingent Liabilities and
Commitments


off-balance


Cash Payments Due by Period


|                                   |  |               |       |  |        |     |      |       |  |   |           |  |  |         |      |  |  |   |       | 
|---------------------------------- |  | ------------- | ----- |  | ------ | --- | ---- | ----- |  | - | --------- |  |  | ------- | ---- |  |  | - | ----- | 
|                                   |  |               |       |  |        | 2-3 |      |       |  |   | After     | 
|                                   |  | Total         |       |  | 1 Year |     |      | Years |  |   | 4-5 Years |  |  | 5 Years |     
|                                   |  |               |       |  |        |     |      |       |  |   |           |  |  |         |     
|                                   |  | (In millions) |      
|Senior term loan                   |  | $             | 317.9 |  |        | $   | 3.2  |       |  | $ | 6.4       |  |  | $       | 6.4  |  |  | $ | 301.9 | 
|                                   |  |               |       |  |        |     |      |       |  |   |           |  |  |         |     
|Total long-term debt               |  |               | 317.9 |  |        |     | 3.2  |       |  |   | 6.4       |  |  |         | 6.4  |  |  |   | 301.9 | 
|Capital lease obligations          |  |               |      |  |        |     |     |       |  |   |          |  |  |         |     |  |  |   |      | 
|Operating leases                   |  |               | 38.4  |  |        |     | 6.8  |       |  |   | 11.8      |  |  |         | 7.5  |  |  |   | 12.3  | 
|Purchase obligations               |  |               | 19.4  |  |        |     | 8.2  |       |  |   | 5.6       |  |  |         | 5.6  |  |  |   |      | 
|Other long-term liabilities        |  |               | 9.2   |  |        |     | 2.1  |       |  |   | 4.4       |  |  |         | 2.4  |  |  |   | 0.3   | 
|                                   |  |               |       |  |        |     |      |       |  |   |           |  |  |         |     
|Total contractual cash obligations |  | $             | 384.9 |  |        | $   | 20.3 |       |  | $ | 28.2      |  |  | $       | 21.9 |  |  | $ | 314.5 | 
|                                   |  |               |       |  |        |     |      |       |  |   |           |  |  |         |     



Recent Accounting Pronouncements


13-1, 13-1




33-8568,


37



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4-01(a) S-X 10-K out-of


Inventory Pricing


Outlook






38



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|         |                                                               
|-------- | --------------------------------------------------------------
|ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
    RISK



 


 




39



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40



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|        |                                            
|------- | -------------------------------------------
|ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

INDEX TO FINANCIAL STATEMENTS


|                                                                                           |  |      |    | 
|------------------------------------------------------------------------------------------ |  | ---- | -- | 
|                                                                                           |  | Page |   
|                                                                                           |  |      |   
|Managements Report on Internal
    Control Over Financial Reporting                       |  |      | 42 | 
|Reports of Independent Registered Public
    Accounting Firm                               |  |      | 43 | 
|Consolidated Balance Sheets                                                                |  |      | 46 | 
|Consolidated Statements of
    Operations                                                  |  |      | 47 | 
|Consolidated Statements of
    Stockholders Equity (Deficit) and Comprehensive
    Income |  |      | 48 | 
|Consolidated Statements of Cash
    Flows                                                  |  |      | 49 | 
|Notes to Consolidated Financial
    Statements                                             |  |      | 50 | 

41



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MANAGEMENTS REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING


13a-15(f)




10-K,






42



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REPORTS OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


The Board of Directors and Stockholders of


AMIS Holdings, Inc.
















43



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| |                      
| | ---------------------
| | /s/ ERNST & YOUNG LLP





44



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| |                      
| | ---------------------
| | /s/ ERNST & YOUNG LLP





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AMIS HOLDINGS, INC. AND SUBSIDIARIES





CONSOLIDATED BALANCE SHEETS


|                                                                                                                                                                                              |                                                                                                                           |                      |        |      |      |   |        |       | 
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------- | -------------------- | ------ | ---- | ---- | - | ------ | ----- | 
|                                                                                                                                                                                              |                                                                                                                           | December 31,         |       
|                                                                                                                                                                                              |                                                                                                                           |                      |       
|                                                                                                                                                                                              |                                                                                                                           | 2005                 |        |      | 2004 |  
|                                                                                                                                                                                              |                                                                                                                           |                      |        |      |      |  
|                                                                                                                                                                                              |                                                                                                                           | (In millions, except |       
|                                                                                                                                                                                              |                                                                                                                           | share data)          |       
|ASSETS                                                                                                                                                                                       
|Current assets:                                                                                                                                                                               |                                                                                                                           |                      |        |      |      |   |        |      
|                                                                                                                                                                                              | Cash and cash equivalents                                                                                                 |                      | $      | 96.7 |      |   | $      | 161.7 | 
|                                                                                                                                                                                              | Accounts receivable, less allowances of $4.4 million and
    $3.1 million at December 31, 2005 and 2004,
    respectively |                      |        | 99.9 |      |   |        | 78.6  | 
|                                                                                                                                                                                              | Inventories                                                                                                               |                      |        | 64.3 |      |   |        | 52.2  | 
|                                                                                                                                                                                              | Deferred tax assets                                                                                                       |                      |        | 4.5  |      |   |        | 6.5   | 
|                                                                                                                                                                                              | Prepaid expenses                                                                                                          |                      |        | 22.9 |      |   |        | 17.2  | 
|                                                                                                                                                                                              | Other current assets                                                                                                      |                      |        | 8.8  |      |   |        | 12.9  | 
|                                                                                                                                                                                              |                                                                                                                           |                      |        |      |      |  
|Total current assets                                                                                                                                                                          |                                                                                                                           |                      | 297.1  |      |      |   | 329.1  |      
|Property, plant and equipment, net                                                                                                                                                            |                                                                                                                           |                      | 203.8  |      |      |   | 199.2  |      
|Goodwill, net                                                                                                                                                                                 |                                                                                                                           |                      | 72.6   |      |      |   | 16.9   |      
|Intangible assets, net                                                                                                                                                                        |                                                                                                                           |                      | 92.5   |      |      |   | 35.1   |      
|Deferred tax assets                                                                                                                                                                           |                                                                                                                           |                      | 50.3   |      |      |   | 39.6   |      
|Other assets                                                                                                                                                                                  |                                                                                                                           |                      | 23.4   |      |      |   | 23.3   |      
|                                                                                                                                                                                              |                                                                                                                           |                      |        |      |      |  
|Total assets                                                                                                                                                                                  |                                                                                                                           | $                    | 739.7  |      |      | $ | 643.2  |      
|                                                                                                                                                                                              |                                                                                                                           |                      |        |      |      |  
|                                                                                                                                                                                             
|LIABILITIES AND STOCKHOLDERS EQUITY                                                                                                                                                         
|Current liabilities:                                                                                                                                                                          |                                                                                                                           |                      |        |      |      |   |        |      
|                                                                                                                                                                                              | Current portion of long-term debt                                                                                         |                      | $      | 3.2  |      |   | $      | 1.3   | 
|                                                                                                                                                                                              | Accounts payable                                                                                                          |                      |        | 48.8 |      |   |        | 37.6  | 
|                                                                                                                                                                                              | Accrued expenses and other current liabilities                                                                            |                      |        | 62.7 |      |   |        | 62.4  | 
|                                                                                                                                                                                              | Foreign deferred tax liability                                                                                            |                      |        | 2.7  |      |   |        |      | 
|                                                                                                                                                                                              | Income taxes payable                                                                                                      |                      |        | 0.7  |      |   |        | 1.3   | 
|                                                                                                                                                                                              |                                                                                                                           |                      |        |      |      |  
|Total current liabilities                                                                                                                                                                     |                                                                                                                           |                      | 118.1  |      |      |   | 102.6  |      
|Long-term debt, less current portion                                                                                                                                                          |                                                                                                                           |                      | 314.7  |      |      |   | 252.2  |      
|Other long-term liabilities                                                                                                                                                                   |                                                                                                                           |                      | 8.2    |      |      |   | 2.4    |      
|                                                                                                                                                                                              |                                                                                                                           |                      |        |      |      |  
|Total liabilities                                                                                                                                                                             |                                                                                                                           |                      | 441.0  |      |      |   | 357.2  |      
|Commitments and Contingencies                                                                                                                                                                 |                                                                                                                           |                      |        |      |      |   |        |      
|Stockholders Equity                                                                                                                                                                          |                                                                                                                           |                      |        |      |      |   |        |      
|Common stock, $0.01 par value, 150,000,000 shares
    authorized, 86,348,367 and 84,832,862 shares issued and
    outstanding as of December 31, 2005 and December 31,
    2004, respectively |                                                                                                                           |                      | 0.9    |      |      |   | 0.8    |      
|Additional paid-in capital                                                                                                                                                                    |                                                                                                                           |                      | 534.4  |      |      |   | 530.6  |      
|Accumulated deficit                                                                                                                                                                           |                                                                                                                           |                      | (250.0 | )    |      |   | (270.6 | )    
|Deferred compensation                                                                                                                                                                         |                                                                                                                           |                      | (0.2   | )    |      |   | (0.4   | )    
|Accumulated other comprehensive income                                                                                                                                                        |                                                                                                                           |                      | 13.6   |      |      |   | 25.6   |      
|                                                                                                                                                                                              |                                                                                                                           |                      |        |      |      |  
|Total stockholders equity                                                                                                                                                                    |                                                                                                                           |                      | 298.7  |      |      |   | 286.0  |      
|                                                                                                                                                                                              |                                                                                                                           |                      |        |      |      |  
|Total liabilities and stockholders equity                                                                                                                                                    |                                                                                                                           | $                    | 739.7  |      |      | $ | 643.2  |      
|                                                                                                                                                                                              |                                                                                                                           |                      |        |      |      |  



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AMIS HOLDINGS, INC. AND SUBSIDIARIES





CONSOLIDATED STATEMENTS OF OPERATIONS


|                                                                                                     |                                                       |                         |       |       |      |   |       |       |   |   |       |       |  
|---------------------------------------------------------------------------------------------------- | ----------------------------------------------------- | ----------------------- | ----- | ----- | ---- | - | ----- | ----- | - | - | ----- | ----- | -
|                                                                                                     |                                                       | Year Ended December 31, |      
|                                                                                                     |                                                       |                         |      
|                                                                                                     |                                                       | 2005                    |       |       | 2004 |   |       | 2003  |  
|                                                                                                     |                                                       |                         |       |       |      |   |       |       |  
|                                                                                                     |                                                       | (In millions, except    |      
|                                                                                                     |                                                       | per share data)         |      
|Revenue                                                                                              |                                                       | $                       | 503.6 |       |      | $ | 517.3 |       |   | $ | 454.1 |      
|Cost of revenue                                                                                      |                                                       |                         | 266.4 |       |      |   | 271.0 |       |   |   | 255.3 |      
|                                                                                                     |                                                       |                         |       |       |      |   |       |       |  
|                                                                                                     |                                                       |                         | 237.2 |       |      |   | 246.3 |       |   |   | 198.8 |      
|Operating expenses:                                                                                  |                                                       |                         |       |       |      |   |       |       |   |   |       |      
|                                                                                                     | Research and development                              |                         |       | 87.4  |      |   |       | 77.2  |   |   |       | 70.2  |  
|                                                                                                     | Marketing and selling                                 |                         |       | 39.1  |      |   |       | 43.0  |   |   |       | 37.8  |  
|                                                                                                     | General and administrative                            |                         |       | 28.5  |      |   |       | 28.7  |   |   |       | 22.7  |  
|                                                                                                     | Amortization of acquisition-related intangible assets |                         |       | 9.0   |      |   |       | 1.3   |   |   |       | 4.8   |  
|                                                                                                     | In-process research and development                   |                         |       | 0.8   |      |   |       | 1.5   |   |   |       |      |  
|                                                                                                     | Restructuring and impairment charges                  |                         |       | 5.3   |      |   |       | 7.9   |   |   |       | 21.7  |  
|                                                                                                     | Nonrecurring charges                                  |                         |       |      |      |   |       |      |   |   |       | 11.4  |  
|                                                                                                     |                                                       |                         |       |       |      |   |       |       |  
|                                                                                                     |                                                       |                         | 170.1 |       |      |   | 159.6 |       |   |   | 168.6 |      
|                                                                                                     |                                                       |                         |       |       |      |   |       |       |  
|Operating income                                                                                     |                                                       |                         | 67.1  |       |      |   | 86.7  |       |   |   | 30.2  |      
|Other income (expense):                                                                              |                                                       |                         |       |       |      |   |       |       |   |   |       |      
|                                                                                                     | Interest expense                                      |                         |       | (16.1 | )    |   |       | (20.7 | ) |   |       | (23.9 | )
|                                                                                                     | Interest income                                       |                         |       | 2.3   |      |   |       | 2.1   |   |   |       | 1.4   |  
|                                                                                                     | Other expense, net                                    |                         |       | (34.7 | )    |   |       | (0.7  | ) |   |       | (16.2 | )
|                                                                                                     |                                                       |                         |       |       |      |   |       |       |  
|                                                                                                     |                                                       |                         | (48.5 | )     |      |   | (19.3 | )     |   |   | (38.7 | )    
|                                                                                                     |                                                       |                         |       |       |      |   |       |       |  
|Income (loss) before income taxes                                                                    |                                                       |                         | 18.6  |       |      |   | 67.4  |       |   |   | (8.5  | )    
|Provision (benefit) for income taxes                                                                 |                                                       |                         | (2.0  | )     |      |   | 15.0  |       |   |   | (8.1  | )    
|                                                                                                     |                                                       |                         |       |       |      |   |       |       |  
|Net income (loss)                                                                                    |                                                       |                         | 20.6  |       |      |   | 52.4  |       |   |   | (0.4  | )    
|Preferred stock dividend                                                                             |                                                       |                         |      |       |      |   |      |       |   |   | (46.3 | )    
|                                                                                                     |                                                       |                         |       |       |      |   |       |       |  
|Net income (loss) attributable to common stockholders                                                |                                                       | $                       | 20.6  |       |      | $ | 52.4  |       |   | $ | (46.7 | )    
|                                                                                                     |                                                       |                         |       |       |      |   |       |       |  
|Basic net income (loss) per common share                                                             |                                                       | $                       | 0.24  |       |      | $ | 0.63  |       |   | $ | (0.84 | )    
|                                                                                                     |                                                       |                         |       |       |      |   |       |       |  
|Diluted net income (loss) per common share                                                           |                                                       | $                       | 0.23  |       |      | $ | 0.60  |       |   | $ | (0.84 | )    
|                                                                                                     |                                                       |                         |       |       |      |   |       |       |  
|Weighted average number of shares used in calculating basic net
    income (loss) per common share   |                                                       |                         | 85.7  |       |      |   | 82.9  |       |   |   | 55.4  |      
|                                                                                                     |                                                       |                         |       |       |      |   |       |       |  
|Weighted average number of shares used in calculating diluted
    net income (loss) per common share |                                                       |                         | 88.2  |       |      |   | 86.6  |       |   |   | 55.4  |      
|                                                                                                     |                                                       |                         |       |       |      |   |       |       |  



47



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##### Table of Contents



AMIS HOLDINGS, INC. AND SUBSIDIARIES





CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY
(DEFICIT) AND


COMPREHENSIVE INCOME


|                                                                                                                                                    |                                         |               |      |   |            |   |     |             |  |   |             |       |  |             |               |   |              |   |        |        |   |   |       |   |  |   |       |       |   |   |        |       |  
|--------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------- | ------------- | ---- | - | ---------- | - | --- | ----------- |  | - | ----------- | ----- |  | ----------- | ------------- | - | ------------ | - | ------ | ------ | - | - | ----- | - |  | - | ----- | ----- | - | - | ------ | ----- | -
|                                                                                                                                                    |                                         |               |      |   |            |   |     |             |  |   |             |       |  | Accumulated |               |   |             
|                                                                                                                                                    |                                         |               |      |   |            |   |     |             |  |   |             | Other |  |             |              
|                                                                                                                                                    |                                         | Common Stock  |      |   | Additional |   |     | Stockholder |  |   |             |       |  |             | Comprehensive |   |              |  
|                                                                                                                                                    |                                         |               |      |   | Paid-In    |   |     | Notes       |  |   | Accumulated |       |  | Deferred    |               |   | Income       |   |        |       
|                                                                                                                                                    |                                         | Shares        |      |   | Amount     |   |     | Capital     |  |   | Receivable  |       |  | Deficit     |               |   | Compensation |   |        | (Loss) |   |   | Total |  
|                                                                                                                                                    |                                         |               |      |   |            |   |     |             |  |   |             |       |  |             |               |   |              |   |        |        |   |   |       |  
|                                                                                                                                                    |                                         | (In millions) |     
|Balance at January 1, 2003                                                                                                                          |                                         |               | 46.7 |   |            | $ | 0.5 |             |  | $ | 38.9        |       |  | $           | (5.6          | ) |              | $ | (276.3 | )      |   | $ |      |   |  | $ | 2.1   |       |   | $ | (240.4 | )    
|Comprehensive income:                                                                                                                               |                                         |               |      |   |            |   |     |             |  |   |             |       |  |             |               |   |              |   |        |        |   |   |       |   |  |   |       |       |   |   |        |      
|                                                                                                                                                    | Net loss                                |               |      |  |            |   |     |            |  |   |             |      |  |             |               |  |              |   |        | (0.4   | ) |   |       |  |  |   |       |      |   |   |        | (0.4  | )
|                                                                                                                                                    | Unrealized derivative gain              |               |      |  |            |   |     |            |  |   |             |      |  |             |               |  |              |   |        |       |   |   |       |  |  |   |       | 0.6   |   |   |        | 0.6   |  
|                                                                                                                                                    | Foreign currency translation adjustment |               |      |  |            |   |     |            |  |   |             |      |  |             |               |  |              |   |        |       |   |   |       |  |  |   |       | 14.3  |   |   |        | 14.3  |  
|                                                                                                                                                    |                                         |               |      |   |            |   |     |             |  |   |             |       |  |             |               |   |              |   |        |        |   |   |       |  
|Total comprehensive income                                                                                                                          |                                         |               |     |   |            |   |    |             |  |   |            |       |  |             |              |   |              |   | (0.4   | )      |   |   |      |   |  |   | 14.9  |       |   |   | 14.5   |      
|Exercise of stock options                                                                                                                           |                                         |               | 1.1  |   |            |   |    |             |  |   | 0.7         |       |  |             |              |   |              |   |       |        |   |   |      |   |  |   |      |       |   |   | 0.7    |      
|Accretion of dividends on Series A Senior Redeemable,
    Series B Junior Redeemable Convertible and Series C
    Senior Redeemable Preferred Stock |                                         |               |     |   |            |   |    |             |  |   |            |       |  |             |              |   |              |   | (46.3  | )      |   |   |      |   |  |   |      |       |   |   | (46.3  | )    
|Net exercise of warrants                                                                                                                            |                                         |               | 9.1  |   |            |   | 0.1 |             |  |   | (0.1        | )     |  |             |              |   |              |   |       |        |   |   |      |   |  |   |      |       |   |   |       |      
|Issuance of shares from initial public offering                                                                                                     |                                         |               | 25.1 |   |            |   | 0.2 |             |  |   | 470.0       |       |  |             |              |   |              |   |       |        |   |   |      |   |  |   |      |       |   |   | 470.2  |      
|Stock compensation on acceleration of stock option vesting                                                                                          |                                         |               |     |   |            |   |    |             |  |   | 0.7         |       |  |             |              |   |              |   |       |        |   |   |      |   |  |   |      |       |   |   | 0.7    |      
|Interest on stockholder notes receivable                                                                                                            |                                         |               |     |   |            |   |    |             |  |   |            |       |  |             | (0.2          | ) |              |   |       |        |   |   |      |   |  |   |      |       |   |   | (0.2   | )    
|Deferred compensation                                                                                                                               |                                         |               |     |   |            |   |    |             |  |   | 0.5         |       |  |             |              |   |              |   |       |        |   |   | (0.5  | ) |  |   |      |       |   |   |       |      
|Amortization of deferred compensation                                                                                                               |                                         |               |     |   |            |   |    |             |  |   |            |       |  |             |              |   |              |   |       |        |   |   |      |   |  |   |      |       |   |   |       |      
|Proceeds from stockholder notes receivable                                                                                                          |                                         |               |     |   |            |   |    |             |  |   |            |       |  |             | 5.8           |   |              |   |       |        |   |   |      |   |  |   |      |       |   |   | 5.8    |      
|                                                                                                                                                    |                                         |               |      |   |            |   |     |             |  |   |             |       |  |             |               |   |              |   |        |        |   |   |       |  
|Balance at December 31, 2003                                                                                                                        |                                         |               | 82.0 |   |            |   | 0.8 |             |  |   | 510.7       |       |  |             |              |   |              |   | (323.0 | )      |   |   | (0.5  | ) |  |   | 17.0  |       |   |   | 205.0  |      
|Comprehensive income:                                                                                                                               |                                         |               |      |   |            |   |     |             |  |   |             |       |  |             |               |   |              |   |        |        |   |   |       |   |  |   |       |       |   |   |        |      
|                                                                                                                                                    | Net income                              |               |      |  |            |   |     |            |  |   |             |      |  |             |               |  |              |   |        | 52.4   |   |   |       |  |  |   |       |      |   |   |        | 52.4  |  
|                                                                                                                                                    | Foreign currency translation adjustment |               |      |  |            |   |     |            |  |   |             |      |  |             |               |  |              |   |        |       |   |   |       |  |  |   |       | 8.6   |   |   |        | 8.6   |  
|                                                                                                                                                    |                                         |               |      |   |            |   |     |             |  |   |             |       |  |             |               |   |              |   |        |        |   |   |       |  
|Total comprehensive income                                                                                                                          |                                         |               |     |   |            |   |    |             |  |   |            |       |  |             |              |   |              |   | 52.4   |        |   |   |      |   |  |   | 8.6   |       |   |   | 61.0   |      
|Exercise of stock options                                                                                                                           |                                         |               | 1.4  |   |            |   |    |             |  |   | 1.1         |       |  |             |              |   |              |   |       |        |   |   |      |   |  |   |      |       |   |   | 1.1    |      
|Issuance of common stock related to acquisition                                                                                                     |                                         |               | 1.3  |   |            |   |    |             |  |   | 16.5        |       |  |             |              |   |              |   |       |        |   |   |      |   |  |   |      |       |   |   | 16.5   |      
|Employee stock purchase plan                                                                                                                        |                                         |               | 0.1  |   |            |   |    |             |  |   | 1.5         |       |  |             |              |   |              |   |       |        |   |   |      |   |  |   |      |       |   |   | 1.5    |      
|Stock compensation on acceleration of stock option vesting and
    options issued to nonemployees                                                   |                                         |               |     |   |            |   |    |             |  |   | 0.8         |       |  |             |              |   |              |   |       |        |   |   |      |   |  |   |      |       |   |   | 0.8    |      
|Amortization of deferred compensation                                                                                                               |                                         |               |     |   |            |   |    |             |  |   |            |       |  |             |              |   |              |   |       |        |   |   | 0.1   |   |  |   |      |       |   |   | 0.1    |      
|                                                                                                                                                    |                                         |               |      |   |            |   |     |             |  |   |             |       |  |             |               |   |              |   |        |        |   |   |       |  
|Balance at December 31, 2004                                                                                                                        |                                         |               | 84.8 |   |            |   | 0.8 |             |  |   | 530.6       |       |  |             |              |   |              |   | (270.6 | )      |   |   | (0.4  | ) |  |   | 25.6  |       |   |   | 286.0  |      
|Comprehensive income:                                                                                                                               |                                         |               |      |   |            |   |     |             |  |   |             |       |  |             |               |   |              |   |        |        |   |   |       |   |  |   |       |       |   |   |        |      
|                                                                                                                                                    | Net income                              |               |      |  |            |   |     |            |  |   |             |      |  |             |               |  |              |   |        | 20.6   |   |   |       |  |  |   |       |      |   |   |        | 20.6  |  
|                                                                                                                                                    | Unrealized derivative gain              |               |      |  |            |   |     |            |  |   |             |      |  |             |               |  |              |   |        |       |   |   |       |  |  |   |       | 0.1   |   |   |        | 0.1   |  
|                                                                                                                                                    | Foreign currency translation adjustment |               |      |  |            |   |     |            |  |   |             |      |  |             |               |  |              |   |        |       |   |   |       |  |  |   |       | (12.0 | ) |   |        | (12.0 | )
|                                                                                                                                                    |                                         |               |      |   |            |   |     |             |  |   |             |       |  |             |               |   |              |   |        |        |   |   |       |  
|Total comprehensive income                                                                                                                          |                                         |               |     |   |            |   |    |             |  |   |            |       |  |             |              |   |              |   | 20.6   |        |   |   |      |   |  |   | (11.9 | )     |   |   | 8.7    |      
|Exercise of stock options                                                                                                                           |                                         |               | 1.2  |   |            |   | 0.1 |             |  |   | 0.8         |       |  |             |              |   |              |   |       |        |   |   |      |   |  |   |      |       |   |   | 0.9    |      
|Issuance of common stock related to exercise of warrant                                                                                             |                                         |               | 0.1  |   |            |   |    |             |  |   |            |       |  |             |              |   |              |   |       |        |   |   |      |   |  |   |      |       |   |   |       |      
|Employee stock purchase plan                                                                                                                        |                                         |               | 0.3  |   |            |   |    |             |  |   | 2.9         |       |  |             |              |   |              |   |       |        |   |   |      |   |  |   |      |       |   |   | 2.9    |      
|Amortization of deferred compensation                                                                                                               |                                         |               |     |   |            |   |    |             |  |   |            |       |  |             |              |   |              |   |       |        |   |   | 0.2   |   |  |   |      |       |   |   | 0.2    |      
|                                                                                                                                                    |                                         |               |      |   |            |   |     |             |  |   |             |       |  |             |               |   |              |   |        |        |   |   |       |  
|Balance at December 31, 2005                                                                                                                        |                                         |               | 86.4 |   |            | $ | 0.9 |             |  | $ | 534.3       |       |  | $           |              |   |              | $ | (250.0 | )      |   | $ | (0.2  | ) |  | $ | 13.7  |       |   | $ | 298.7  |      
|                                                                                                                                                    |                                         |               |      |   |            |   |     |             |  |   |             |       |  |             |               |   |              |   |        |        |   |   |       |  



48



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##### Table of Contents



AMIS HOLDINGS, INC. AND SUBSIDIARIES





CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                                                                            |                                                                                  |                                        |        |      |       |   |       |      |      |   |        |       |      |  
|----------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------- | -------------------------------------- | ------ | ---- | ----- | - | ----- | ---- | ---- | - | ------ | ----- | ---- | -
|                                                                                                            |                                                                                  | Year Ended December 31,                |       
|                                                                                                            |                                                                                  |                                        |       
|                                                                                                            |                                                                                  | 2005                                   |        |      | 2004  |   |       | 2003 |     
|                                                                                                            |                                                                                  |                                        |        |      |       |   |       |      |     
|                                                                                                            |                                                                                  | (In millions)                          |       
|Cash flows from operating activities                                                                        |                                                                                  |                                        |        |      |       |   |       |      |      |   |        |      
|Net income (loss)                                                                                           |                                                                                  | $                                      | 20.6   |      |       | $ | 52.4  |      |      | $ | (0.4   | )    
|Adjustments to reconcile net income (loss) to net cash provided
    by operating activities:                |                                                                                  |                                        |        |      |       |   |       |      |      |   |        |      
|                                                                                                            | Depreciation and amortization                                                    |                                        |        | 51.1 |       |   |       | 43.8 |      |   |        | 44.8  |     
|                                                                                                            | In-process research and development                                              |                                        |        | 0.8  |       |   |       | 1.5  |      |   |        |      |     
|                                                                                                            | Amortization of deferred financing costs                                         |                                        |        | 0.8  |       |   |       | 1.3  |      |   |        | 1.3   |     
|                                                                                                            | Stock-based compensation expense                                                 |                                        |        | 0.2  |       |   |       | 0.9  |      |   |        | 3.9   |     
|                                                                                                            | Restructuring charges, net of cash expended                                      |                                        |        | 4.9  |       |   |       | 5.1  |      |   |        | 0.7   |     
|                                                                                                            | Impairment of long-term asset                                                    |                                        |        |     |       |   |       |     |      |   |        | 20.0  |     
|                                                                                                            | Provision for (benefit from) deferred income taxes                               |                                        |        | (3.4 | )     |   |       | 2.2  |      |   |        | (19.1 | )   
|                                                                                                            | Write-off of deferred financing charges and loss on settlement
    of derivative |                                        |        | 6.7  |       |   |       |     |      |   |        | 8.7   |     
|                                                                                                            | Loss on retirement of property, plant and equipment                              |                                        |        | 0.1  |       |   |       |     |      |   |        | 0.5   |     
|                                                                                                            | Income statement impact of change in value of derivatives                        |                                        |        |     |       |   |       |     |      |   |        |      |     
|                                                                                                            | Interest on stockholder notes receivable                                         |                                        |        |     |       |   |       |     |      |   |        | (0.3  | )   
|                                                                                                            | Changes in operating assets and liabilities:                                     |                                        |        |      |       |   |       |      |      |   |        |       |     
|                                                                                                            |                                                                                  | Accounts receivable                    |        |      | (16.3 | ) |       |      | (0.4 | ) |        |       | (1.7 | )
|                                                                                                            |                                                                                  | Inventories                            |        |      | (11.5 | ) |       |      | (4.0 | ) |        |       | (2.3 | )
|                                                                                                            |                                                                                  | Prepaid expenses and other assets      |        |      | 8.6   |   |       |      | (5.2 | ) |        |       | 6.5  |  
|                                                                                                            |                                                                                  | Accounts payable                       |        |      | 8.2   |   |       |      | 0.9  |   |        |       | 3.6  |  
|                                                                                                            |                                                                                  | Accrued expenses and other liabilities |        |      | (11.3 | ) |       |      | (2.3 | ) |        |       | 4.5  |  
|                                                                                                            |                                                                                  |                                        |        |      |       |   |       |      |     
|Net cash provided by operating activities                                                                   |                                                                                  |                                        | 59.5   |      |       |   | 96.2  |      |      |   | 70.7   |      
|Cash flows from investing activities                                                                        |                                                                                  |                                        |        |      |       |   |       |      |      |   |        |      
|Purchases of property, plant and equipment                                                                  |                                                                                  |                                        | (34.5  | )    |       |   | (32.4 | )    |      |   | (26.6  | )    
|Proceeds from sale of property, plant and equipment                                                         |                                                                                  |                                        |       |      |       |   | 0.1   |      |      |   | 0.3    |      
|Purchase of business, net of cash acquired                                                                  |                                                                                  |                                        | (138.5 | )    |       |   | (26.8 | )    |      |   |       |      
|Changes in restricted cash                                                                                  |                                                                                  |                                        | (1.2   | )    |       |   | 2.4   |      |      |   |       |      
|Changes in other assets                                                                                     |                                                                                  |                                        | (5.4   | )    |       |   | (3.3  | )    |      |   | (0.2   | )    
|                                                                                                            |                                                                                  |                                        |        |      |       |   |       |      |     
|Net cash used in investing activities                                                                       |                                                                                  |                                        | (179.6 | )    |       |   | (60.0 | )    |      |   | (26.5  | )    
|Cash flows from financing activities                                                                        |                                                                                  |                                        |        |      |       |   |       |      |      |   |        |      
|Payments on long-term debt                                                                                  |                                                                                  |                                        | (255.6 | )    |       |   | (1.2  | )    |      |   | (230.4 | )    
|Issuance of common and preferred stock, net of offering costs                                               |                                                                                  |                                        |       |      |       |   |      |      |      |   | 470.3  |      
|Proceeds from senior term loan                                                                              |                                                                                  |                                        | 320.0  |      |       |   |      |      |      |   | 125.0  |      
|Redemption of preferred stock                                                                               |                                                                                  |                                        |       |      |       |   |      |      |      |   | (550.2 | )    
|Payments on long-term payables                                                                              |                                                                                  |                                        |       |      |       |   |      |      |      |   | (1.4   | )    
|Proceeds from senior subordinated notes                                                                     |                                                                                  |                                        |       |      |       |   |      |      |      |   | 200.0  |      
|Proceeds from exercise of stock options for common and preferred
    stock and employee stock purchase plan |                                                                                  |                                        | 3.8    |      |       |   | 2.5   |      |      |   | 0.9    |      
|Debt issuance costs                                                                                         |                                                                                  |                                        | (4.5   | )    |       |   |      |      |      |   | (11.4  | )    
|Payment to settle derivatives                                                                               |                                                                                  |                                        | (0.1   | )    |       |   |      |      |      |   | (0.8   | )    
|                                                                                                            |                                                                                  |                                        |        |      |       |   |       |      |     
|Net cash provided by financing activities                                                                   |                                                                                  |                                        | 63.6   |      |       |   | 1.3   |      |      |   | 2.0    |      
|Effect of exchange rate changes on cash and cash
    equivalents                                            |                                                                                  |                                        | (8.5   | )    |       |   | 5.1   |      |      |   | 10.7   |      
|                                                                                                            |                                                                                  |                                        |        |      |       |   |       |      |     
|Net increase/(decrease) in cash and cash equivalents                                                        |                                                                                  |                                        | (65.0  | )    |       |   | 42.6  |      |      |   | 56.9   |      
|Cash and cash equivalents at beginning of year                                                              |                                                                                  |                                        | 161.7  |      |       |   | 119.1 |      |      |   | 62.2   |      
|                                                                                                            |                                                                                  |                                        |        |      |       |   |       |      |     
|Cash and cash equivalents at end of year                                                                    |                                                                                  | $                                      | 96.7   |      |       | $ | 161.7 |      |      | $ | 119.1  |      
|                                                                                                            |                                                                                  |                                        |        |      |       |   |       |      |     
|Supplementary cash flow information                                                                         |                                                                                  |                                        |        |      |       |   |       |      |      |   |        |      
|Cash paid for interest                                                                                      |                                                                                  | $                                      | 21.1   |      |       | $ | 19.4  |      |      | $ | 16.7   |      
|Cash paid for income taxes                                                                                  |                                                                                  | $                                      | 4.2    |      |       | $ | 12.6  |      |      | $ | 9.3    |      
|Supplementary disclosure of non-cash investing and financing
    activities                                 |                                                                                  |                                        |        |      |       |   |       |      |      |   |        |      
|Common stock issued for purchase of business                                                                |                                                                                  | $                                      |       |      |       | $ | 16.7  |      |      | $ |       |      



49



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AMIS HOLDINGS, INC. AND SUBSIDIARIES





NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


December 31, 2005




|   |                                                       
|-- | ------------------------------------------------------
|1. | Background, Basis of Presentation and Recapitalization

Background and Basis of Presentation




Recapitalization












| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | AMIS Holdings was capitalized with three tranches of capital
    stock: approximately 46.0 million shares of common stock;
    approximately 17.9 million shares of Series A Senior
    Redeemable Preferred Stock; and approximately 14.3 shares
    of Series B Junior Redeemable Convertible Preferred Stock.                                                                                                                                                   
|
| |  | The Parents ownership in Spinco was converted into the
    following securities of AMIS Holdings: (i) approximately
    45.1 million shares of common stock,
    (ii) 17.5 million shares of Series A Senior
    Redeemable Preferred Stock, and (iii) 14.0 million
    shares of Series B Junior Redeemable Convertible Preferred
    Stock. The Parent was also issued a warrant to purchase an
    additional approximately 4.6 million shares of common stock.
|
| |  | Current and former executives ownership in Spinco was
    converted into the following securities of AMIS Holdings:
    (i) approximately 1.0 million shares of common stock,
    (ii) approximately 0.4 million shares of Series A
    Senior Redeemable Preferred Stock, and (iii) approximately
    0.3 million shares of Series B Junior Redeemable
    Convertible Preferred Stock.                                                                          
|
| |  | CVC and FP each acquired the following securities of AMIS
    Holdings directly from the Parent: (i) approximately
    17.8 million shares of common stock,
    (ii) approximately 6.9 million shares of                                                                                                                                                                                                                                                           

50



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##### Table of Contents



AMIS HOLDINGS, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | Series A Senior Redeemable Preferred Stock, and
    (iii) approximately 5.5 million shares of
    Series B Junior Redeemable Convertible Preferred Stock in
    exchange for $138.5 million in cash. Another third-party
    investment fund acquired the following securities of AMIS
    Holdings directly from the Parent: (i) approximately
    0.4 million shares of common stock, (ii) approximately
    0.2 million shares of Series A Senior Redeemable
    Preferred Stock, and (iii) approximately 0.1 million
    shares of Series B Junior Redeemable Convertible Preferred
    Stock in exchange for $3.0 million in cash. The aggregate
    consideration paid by these third parties to the Parent was
    $280.0 million in cash.
|
| |  | AMIS Holdings obtained $175.0 million in bank debt and used
    the proceeds for the following: (i) redemption of
    outstanding Spinco Series B and C Preferred Stock and
    common stock warrants for total consideration of approximately
    $6.5 million; (ii) repayment of $72.2 million of
    Spinco intercompany debt payable to the Parent;
    (iii) payment of $40.5 million to the Parent for a
    non-compete agreement; (iv) payment of $29.2 million
    to the Parent in satisfaction of the remaining liquidation
    preference on the Spinco Series A Preferred Stock; and
    (v) payment of Recapitalization related transaction
    expenses of $24.9 million.                                                         
|
| |  | The Parent agreed to indemnify the Company for certain existing
    environmental contingencies and to pay certain existing
    liabilities of the Company. The estimated amount of these
    obligations at December 21, 2000 was $11.2 million.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                







|   |                                
|-- | -------------------------------
|2. | Significant Accounting Policies

Principles of Consolidation




Use of Estimates




Revenue Recognition






51



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##### Table of Contents



AMIS HOLDINGS, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




percentage-of percentage-of cost-to percentage-of percentage-of




Research and Development Expense




Capitalized Software Development Costs for Internal Use




Concentrations of Credit Risk




52



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##### Table of Contents



AMIS HOLDINGS, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Cash and Cash Equivalents




Inventories






Property, Plant and Equipment






Restricted Cash




Intangible Assets




53



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##### Table of Contents



AMIS HOLDINGS, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                       |  |          |       |  |              |   |       |          |  |   |              |  |  |             |      |  |  |  |                 | 
|---------------------- |  | -------- | ----- |  | ------------ | - | ----- | -------- |  | - | ------------ |  |  | ----------- | ---- |  |  |  | --------------- | 
|                       |  | 2005     |       |  | 2004         |   |       |         
|                       |  |          |       |  |              |   |       |         
|                       |  | Gross    |       |  |              |   | Gross |          |  |   |              | 
|                       |  | Carrying |       |  | Accumulated  |   |       | Carrying |  |   | Accumulated  |  |  |            
|                       |  | Amount   |       |  | Amortization |   |       | Amount   |  |   | Amortization |  |  | Useful Life |     
|                       |  |          |       |  |              |   |       |          |  |   |              |  |  |             |     
|Licenses               |  | $        | 72.4  |  |              | $ | 63.3  |          |  | $ | 70.8         |  |  | $           | 61.8 |  |  |  | 0.5 to 15 years | 
|Non-compete agreements |  |          | 2.3   |  |              |   | 0.4   |          |  |   | 0.4          |  |  |             | 0.1  |  |  |  | 2 years         | 
|Customer relationships |  |          | 45.8  |  |              |   | 3.0   |          |  |   | 10.1         |  |  |             | 0.2  |  |  |  | 4 to 10 years   | 
|Developed technology   |  |          | 37.9  |  |              |   | 4.7   |          |  |   | 12.7         |  |  |             | 0.3  |  |  |  | 5 years         | 
|Patents                |  |          | 6.6   |  |              |   | 1.2   |          |  |   | 4.2          |  |  |             | 0.8  |  |  |  | 5 to 10 years   | 
|Contracts              |  |          | 0.3   |  |              |   | 0.2   |          |  |   | 0.3          |  |  |             | 0.2  |  |  |  | 5 years         | 
|                       |  |          |       |  |              |   |       |          |  |   |              |  |  |             |     
|Total                  |  | $        | 165.3 |  |              | $ | 72.8  |          |  | $ | 98.5         |  |  | $           | 63.4 |  |  |  |                 | 
|                       |  |          |       |  |              |   |       |          |  |   |              |  |  |             |     





|     |  |   |      | 
|---- |  | - | ---- | 
|2006 |  | $ | 17.0 | 
|2007 |  | $ | 16.9 | 
|2008 |  | $ | 16.6 | 
|2009 |  | $ | 14.4 | 
|2010 |  | $ | 10.5 | 

Impairment of Long-Lived Assets






54



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##### Table of Contents



AMIS HOLDINGS, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Debt Issuance Costs




Goodwill










55



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##### Table of Contents



AMIS HOLDINGS, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Foreign Currency






non-U.S.




Income Taxes




Stock Options




56



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##### Table of Contents



AMIS HOLDINGS, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|                                                                                                        |                                                                   |      |       |     |      |   |      |      |  |   |       |   | 
|------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------- | ---- | ----- | --- | ---- | - | ---- | ---- |  | - | ----- | - | 
|                                                                                                        |                                                                   | 2005 |       |     | 2004 |   |      | 2003 | 
|                                                                                                        |                                                                   |      |       |     |      |   |      |      | 
|Net income (loss) as reported                                                                           |                                                                   | $    | 20.6  |     |      | $ | 52.4 |      |  | $ | (0.4  | )
|Less: Stock compensation expense determined under the fair value
    method, net of related tax effects |                                                                   |      | (13.3 | )   |      |   | (3.9 | )    |  |   | (0.3  | )
|Add: Compensation expense associated with accelerated stock
    options, net of related tax effects     |                                                                   |      |      |     |      |   | 0.4  |      |  |   | 0.4   |  
|                                                                                                        | Amortization of deferred compensation, net of related tax effects |      |       | 0.1 |      |   |      | 0.1  |  |   |       |  | 
|                                                                                                        |                                                                   |      |       |     |      |   |      |      | 
|Pro forma net income (loss)                                                                             |                                                                   |      | 7.4   |     |      |   | 49.0 |      |  |   | (0.3  | )
|Preferred stock dividend as reported                                                                    |                                                                   |      |      |     |      |   |     |      |  |   | (46.3 | )
|                                                                                                        |                                                                   |      |       |     |      |   |      |      | 
|Pro forma net income (loss) attributable to common stockholders                                         |                                                                   | $    | 7.4   |     |      | $ | 49.0 |      |  | $ | (46.6 | )
|                                                                                                        |                                                                   |      |       |     |      |   |      |      | 
|Net income (loss) per common share:                                                                     |                                                                   |      |       |     |      |   |      |      |  |   |       |  
|Basic as reported                                                                                       |                                                                   | $    | 0.24  |     |      | $ | 0.63 |      |  | $ | (0.84 | )
|Diluted as reported                                                                                     |                                                                   | $    | 0.23  |     |      | $ | 0.60 |      |  | $ | (0.84 | )
|Pro forma basic                                                                                         |                                                                   | $    | 0.09  |     |      | $ | 0.59 |      |  | $ | (0.84 | )
|Pro forma diluted                                                                                       |                                                                   | $    | 0.08  |     |      | $ | 0.57 |      |  | $ | (0.84 | )

out-of




57



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AMIS HOLDINGS, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                      |  |      |      |   |      |   |      |      |  |   |      |  
|----------------------------------------------------- |  | ---- | ---- | - | ---- | - | ---- | ---- |  | - | ---- | -
|                                                      |  | 2005 |      |   | 2004 |   |      | 2003 | 
|                                                      |  |      |      |   |      |   |      |      | 
|Dividend yield                                        |  |      | 0    | % |      |   | 0    | %    |  |   | 0    | %
|Volatility                                            |  |      | 66   | % |      |   | 75   | %    |  |   | 8    | %
|Risk-free interest rate                               |  |      | 4.18 | % |      |   | 3.14 | %    |  |   | 2.07 | %
|Expected life in years                                |  |      | 5.4  |   |      |   | 3.7  |      |  |   | 2.5  |  
|Weighted average fair value of options at grant date* |  | $    | 7.01 |   |      | $ | 8.05 |      |  | $ | 2.16 |  






|  |                                                                                                                                                                                                                             
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | The fair value of these options was estimated at the date of
    grant using the Black Scholes Value option pricing model
    subsequent to the IPO in 2003 and the Minimum Value option
    pricing model prior to the IPO.



Advertising




Earnings Per Share










|                                                                                                                        |  |      |      |  |      |  |      |      |  |  |      | 
|----------------------------------------------------------------------------------------------------------------------- |  | ---- | ---- |  | ---- |  | ---- | ---- |  |  | ---- | 
|                                                                                                                        |  | 2005 |      |  | 2004 |  |      | 2003 | 
|                                                                                                                        |  |      |      |  |      |  |      |      | 
|Weighted-average basic shares outstanding                                                                               |  |      | 85.7 |  |      |  | 82.9 |      |  |  | 55.4 | 
|Effect of dilutive securities  shares issuable upon
    exercise of options, warrants and contingently issuable shares |  |      | 2.5  |  |      |  | 3.7  |      |  |  |     | 
|                                                                                                                        |  |      |      |  |      |  |      |      | 
|Weighted-average fully diluted shares outstanding                                                                       |  |      | 88.2 |  |      |  | 86.6 |      |  |  | 55.4 | 
|                                                                                                                        |  |      |      |  |      |  |      |      | 

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##### Table of Contents



AMIS HOLDINGS, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Derivatives




Recent Accounting Pronouncements


13-1, 13-1




33-8568, 4-01(a) S-X


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##### Table of Contents



AMIS HOLDINGS, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


out-of


Inventory Pricing


Reclassifications






|   |                            
|-- | ---------------------------
|3. | Financial Statement Details



|                |  |      |      |  |      |   |      | 
|--------------- |  | ---- | ---- |  | ---- | - | ---- | 
|                |  | 2005 |      |  | 2004 |  
|                |  |      |      |  |      |  
|Raw materials   |  | $    | 4.9  |  |      | $ | 5.5  | 
|Work-in-process |  |      | 40.6 |  |      |   | 27.7 | 
|Finished goods  |  |      | 18.8 |  |      |   | 19.0 | 
|                |  |      |      |  |      |  
|                |  | $    | 64.3 |  |      | $ | 52.2 | 
|                |  |      |      |  |      |  



|                         |  |      |      |  |      |   |      | 
|------------------------ |  | ---- | ---- |  | ---- | - | ---- | 
|                         |  | 2005 |      |  | 2004 |  
|                         |  |      |      |  |      |  
|Restricted cash          |  | $    | 2.6  |  |      | $ | 1.8  | 
|Prepaid pension asset    |  |      | 8.6  |  |      |   | 12.6 | 
|Debt issuance costs, net |  |      | 4.0  |  |      |   | 7.1  | 
|Other                    |  |      | 8.2  |  |      |   | 1.8  | 
|                         |  |      |      |  |      |  
|                         |  | $    | 23.4 |  |      | $ | 23.3 | 
|                         |  |      |      |  |      |  

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##### Table of Contents



AMIS HOLDINGS, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                              |  |      |        |   |      |   |        |  
|----------------------------- |  | ---- | ------ | - | ---- | - | ------ | -
|                              |  | 2005 |        |   | 2004 |  
|                              |  |      |        |   |      |  
|Land and buildings            |  | $    | 70.6   |   |      | $ | 65.7   |  
|Machinery and equipment       |  |      | 433.7  |   |      |   | 407.2  |  
|Construction-in-progress      |  |      | 11.3   |   |      |   | 10.0   |  
|                              |  |      |        |   |      |  
|                              |  |      | 515.6  |   |      |   | 482.9  |  
|Less accumulated depreciation |  |      | (311.8 | ) |      |   | (283.7 | )
|                              |  |      |        |   |      |  
|                              |  | $    | 203.8  |   |      | $ | 199.2  |  
|                              |  |      |        |   |      |  



|                                               |  |      |      |  |      |   |      | 
|---------------------------------------------- |  | ---- | ---- |  | ---- | - | ---- | 
|                                               |  | 2005 |      |  | 2004 |  
|                                               |  |      |      |  |      |  
|Accrued employee compensation                  |  | $    | 23.9 |  |      | $ | 31.4 | 
|Reserve for restructuring charges              |  |      | 4.8  |  |      |   | 5.3  | 
|Reserve for product development project losses |  |      | 8.6  |  |      |   | 7.0  | 
|Investment grant payable                       |  |      | 3.7  |  |      |   | 3.9  | 
|Reserve for warranty                           |  |      | 4.7  |  |      |   | 1.5  | 
|Interest payable                               |  |      | 0.1  |  |      |   | 6.0  | 
|Other                                          |  |      | 16.9 |  |      |   | 7.3  | 
|                                               |  |      |      |  |      |  
|                                               |  | $    | 62.7 |  |      | $ | 62.4 | 
|                                               |  |      |      |  |      |  



|   |                            
|-- | ---------------------------
|4. | Lease and Other Commitments





|     |  |   |     | 
|---- |  | - | --- | 
|2006 |  | $ | 6.8 | 
|2007 |  | $ | 6.2 | 
|2008 |  | $ | 5.6 | 
|2009 |  | $ | 4.1 | 
|2010 |  | $ | 3.4 | 

15-year


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##### Table of Contents



AMIS HOLDINGS, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|   |                                  
|-- | ---------------------------------
|5. | Transactions with Related Parties

Shareholders Agreement




Advisory Agreements










62



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##### Table of Contents



AMIS HOLDINGS, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


clean-up










|   |               
|-- | --------------
|6. | Long-Term Debt



|                          |  |      |       |  |      |   |       | 
|------------------------- |  | ---- | ----- |  | ---- | - | ----- | 
|                          |  | 2005 |       |  | 2004 |  
|                          |  |      |       |  |      |  
|Term loan                 |  | $    | 317.9 |  |      | $ | 123.5 | 
|Senior subordinated notes |  |      |      |  |      |   | 130.0 | 
|                          |  |      |       |  |      |  
|                          |  |      | 317.9 |  |      |   | 253.5 | 
|Less current portion      |  |      | 3.2   |  |      |   | 1.3   | 
|                          |  |      |       |  |      |  
|Total long-term debt      |  | $    | 314.7 |  |      | $ | 252.2 | 
|                          |  |      |       |  |      |  

Amendments to Senior Credit Facilities




63



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##### Table of Contents



AMIS HOLDINGS, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


3 4






Senior Subordinated Notes


3 4




64



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##### Table of Contents



AMIS HOLDINGS, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Letters of Credit




Aggregate Maturities of Long-Term Debt




|          |  |      |     |  |      |   |     |      |  |   |      |  |  |      |     |  |            |   |     |  |  |   |       | 
|--------- |  | ---- | --- |  | ---- | - | --- | ---- |  | - | ---- |  |  | ---- | --- |  | ---------- | - | --- |  |  | - | ----- | 
|          |  | 2006 |     |  | 2007 |   |     | 2008 |  |   | 2009 |  |  | 2010 |     |  | Thereafter |  
|          |  |      |     |  |      |   |     |      |  |   |      |  |  |      |     |  |            |  
|Term Loan |  | $    | 3.2 |  |      | $ | 3.2 |      |  | $ | 3.2  |  |  | $    | 3.2 |  |            | $ | 3.2 |  |  | $ | 301.9 | 



|   |                                               
|-- | ----------------------------------------------
|7. | Customer-Funded Product Development Activities





|   |             
|-- | ------------
|8. | Income Taxes



|         |          |      |      |       |      |   |      |      |   |   |       |       |  
|-------- | -------- | ---- | ---- | ----- | ---- | - | ---- | ---- | - | - | ----- | ----- | -
|         |          | 2005 |      |       | 2004 |   |      | 2003 |  
|         |          |      |      |       |      |   |      |      |  
|Federal: |          |      |      |       |      |   |      |      |   |   |       |      
|         | Current  |      | $    | (10.7 | )    |   | $    | 0.1  |   |   | $     |      |  
|         | Deferred |      |      | 5.3   |      |   |      | 5.5  |   |   |       | (12.5 | )
|         |          |      |      |       |      |   |      |      |  
|         |          |      | (5.4 | )     |      |   | 5.6  |      |   |   | (12.5 | )    
|State:   |          |      |      |       |      |   |      |      |   |   |       |      
|         | Current  |      |      | (1.2  | )    |   |      |     |   |   |       |      |  
|         | Deferred |      |      | 0.6   |      |   |      | 1.0  |   |   |       | (2.2  | )
|         |          |      |      |       |      |   |      |      |  
|         |          |      | (0.6 | )     |      |   | 1.0  |      |   |   | (2.2  | )    
|Foreign: |          |      |      |       |      |   |      |      |   |   |       |      
|         | Current  |      |      | 1.4   |      |   |      | 12.3 |   |   |       | 11.4  |  
|         | Deferred |      |      | 2.6   |      |   |      | (3.9 | ) |   |       | (4.8  | )
|         |          |      |      |       |      |   |      |      |  
|         |          |      | 4.0  |       |      |   | 8.4  |      |   |   | 6.6   |      
|         |          |      |      |       |      |   |      |      |  
|Total    |          | $    | (2.0 | )     |      | $ | 15.0 |      |   | $ | (8.1  | )    
|         |          |      |      |       |      |   |      |      |  

65



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##### Table of Contents



AMIS HOLDINGS, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                             |  |      |       |    |      |   |      |      |  |   |       |   
|-------------------------------------------- |  | ---- | ----- | -- | ---- | - | ---- | ---- |  | - | ----- | --
|                                             |  | 2005 |       |    | 2004 |   |      | 2003 | 
|                                             |  |      |       |    |      |   |      |      | 
|Federal tax at statutory rate                |  | $    | 6.5   |    |      | $ | 23.6 |      |  | $ | (3.0  | ) 
|State taxes (net of federal benefit)         |  |      | 0.7   |    |      |   | 4.0  |      |  |   | (0.5  | ) 
|Impact of Foreign tax rates                  |  |      | (3.7  | )  |      |   | (5.6 | )    |  |   | (6.3  | ) 
|Foreign research and development credits     |  |      |      |    |      |   | (0.9 | )    |  |   |      |   
|Change in valuation allowance                |  |      | (6.2  | )  |      |   | (6.4 | )    |  |   | 1.9   |   
|Change in estimate of blended statutory rate |  |      | 1.7   |    |      |   |     |      |  |   |      |   
|Permanent differences                        |  |      | (1.2  | )  |      |   |     |      |  |   | (0.5  | ) 
|Other, net                                   |  |      | 0.2   |    |      |   | 0.3  |      |  |   | 0.3   |   
|                                             |  |      |       |    |      |   |      |      | 
|Total                                        |  | $    | (2.0  | )  |      | $ | 15.0 |      |  | $ | (8.1  | ) 
|                                             |  |      |       |    |      |   |      |      | 
|Effective tax rate                           |  |      | (10.9 | )% |      |   | 22.3 | %    |  |   | (95.3 | )%
|                                             |  |      |       |    |      |   |      |      | 



|                               |                                                       |      |       |       |      |   |       |       |  
|------------------------------ | ----------------------------------------------------- | ---- | ----- | ----- | ---- | - | ----- | ----- | -
|                               |                                                       | 2005 |       |       | 2004 |  
|                               |                                                       |      |       |       |      |  
|Deferred tax assets:           |                                                       |      |       |       |      |   |       |      
|                               | Foreign research and development investment deduction |      | $     | 16.3  |      |   | $     | 19.7  |  
|                               | Reserves not currently deductible                     |      |       | 9.4   |      |   |       | 8.2   |  
|                               | Intangible asset basis difference                     |      |       | 62.6  |      |   |       | 71.9  |  
|                               | Net operating loss carryforwards                      |      |       | 49.3  |      |   |       | 37.5  |  
|                               | Tax credit carryforwards                              |      |       | 4.2   |      |   |       | 2.7   |  
|                               | Other                                                 |      |       | 0.2   |      |   |       | 1.2   |  
|                               |                                                       |      |       |       |      |  
|Total deferred tax assets      |                                                       |      | 142.0 |       |      |   | 141.2 |      
|Deferred tax liabilities:      |                                                       |      |       |       |      |   |       |      
|                               | Tax in excess of book depreciation                    |      |       | (36.1 | )    |   |       | (34.6 | )
|                               | Prepaid pension asset                                 |      |       | (2.9  | )    |   |       | (4.3  | )
|                               | Other                                                 |      |       | (5.6  | )    |   |       | (5.8  | )
|                               |                                                       |      |       |       |      |  
|Total deferred tax liabilities |                                                       |      | (44.6 | )     |      |   | (44.7 | )    
|                               |                                                       |      |       |       |      |  
|                               |                                                       |      | 97.4  |       |      |   | 96.5  |      
|Valuation allowance            |                                                       |      | (45.3 | )     |      |   | (50.4 | )    
|                               |                                                       |      |       |       |      |  
|Net deferred tax assets        |                                                       | $    | 52.1  |       |      | $ | 46.1  |      
|                               |                                                       |      |       |       |      |  



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NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)
















|   |                       
|-- | ----------------------
|9. | Employee Benefit Plans

Defined Contribution Plans




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NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






Defined Benefit Plan






|                                                    |  |      |      |   |      |   |      |  
|--------------------------------------------------- |  | ---- | ---- | - | ---- | - | ---- | -
|                                                    |  | 2005 |      |   | 2004 |  
|                                                    |  |      |      |   |      |  
|Change in benefit obligation:                       |  |      |      |   |      |   |      |  
|Benefit obligation at beginning of period           |  | $    | 31.5 |   |      | $ | 21.9 |  
|Service cost                                        |  |      | 2.7  |   |      |   | 2.1  |  
|Interest cost                                       |  |      | 1.3  |   |      |   | 1.1  |  
|Benefits, administrative expenses and premiums paid |  |      | (0.3 | ) |      |   | (0.3 | )
|Actuarial (gain) loss                               |  |      | (4.5 | ) |      |   | 4.2  |  
|Foreign currency translation (gain) loss            |  |      | (4.2 | ) |      |   | 2.5  |  
|                                                    |  |      |      |   |      |  
|Benefit obligation at end of period                 |  |      | 26.5 |   |      |   | 31.5 |  
|Change in plan assets:                              |  |      |      |   |      |   |      |  
|Fair value of plan assets at beginning of period    |  | $    | 38.8 |   |      | $ | 35.0 |  
|Actual return on plan assets                        |  |      | 2.6  |   |      |   | 1.3  |  
|Benefits, administrative expenses and premiums paid |  |      | (0.3 | ) |      |   | (0.3 | )
|Foreign currency translation (loss) gain            |  |      | (5.3 | ) |      |   | 2.8  |  
|                                                    |  |      |      |   |      |  
|Fair value of plan assets at end of period          |  |      | 35.8 |   |      |   | 38.8 |  
|                                                    |  |      |      |   |      |  
|Excess of plan assets over benefit obligation       |  |      | 9.3  |   |      |   | 7.3  |  
|Unrecognized net actuarial (loss) gain              |  |      | (0.8 | ) |      |   | 4.8  |  
|Foreign currency translation gain                   |  |      | 0.1  |   |      |   | 0.5  |  
|                                                    |  |      |      |   |      |  
|Prepaid pension asset                               |  | $    | 8.6  |   |      | $ | 12.6 |  
|                                                    |  |      |      |   |      |  
|Components of net periodic benefit cost:            |  |      |      |   |      |   |      |  
|Service cost                                        |  | $    | 2.7  |   |      | $ | 2.1  |  
|Interest cost                                       |  |      | 1.3  |   |      |   | 1.1  |  
|Expected return on plan assets                      |  |      | (1.5 | ) |      |   | (1.8 | )
|                                                    |  |      |      |   |      |  
|Net periodic pension cost                           |  | $    | 2.5  |   |      | $ | 1.4  |  
|                                                    |  |      |      |   |      |  

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NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                               |  |      |     |   |      |  |     |  
|------------------------------ |  | ---- | --- | - | ---- |  | --- | -
|                               |  | 2005 |     |   | 2004 | 
|                               |  |      |     |   |      | 
|Weighted average assumptions:  |  |      |     |   |      |  |     |  
|Discount rate                  |  |      | 4.5 | % |      |  | 5.3 | %
|Expected return on plan assets |  |      | 4.5 | % |      |  | 5.3 | %
|Compensation rate increase     |  |      | 4.0 | % |      |  | 4.0 | %



|            |  |                   |     | 
|----------- |  | ----------------- | --- | 
|            |  | Expected Benefits |    
|            |  | to be Paid        |    
|            |  |                   |    
|2006        |  | $                 | 0.4 | 
|2007        |  | $                 | 0.1 | 
|2008        |  | $                 | 2.4 | 
|2009        |  | $                 | 0.1 | 
|2010        |  | $                 | 1.1 | 
|2011 - 2015 |  | $                 | 2.7 | 







Collective Bargaining Agreements






|    |              
|--- | -------------
|10. | Contingencies



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AMIS HOLDINGS, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|    |                               
|--- | ------------------------------
|11. | Stockholders Equity (Deficit)

Common and Preferred Stock






Warrants






|    |                         
|--- | ------------------------
|12. | Stock Based Compensation



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NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)












out-of




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AMIS HOLDINGS, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                             |  |           |      |           |           |  |           |                                 |  |  |        |   |        |           |       |        |           |   |                  |                  |  |   |      |  |  |  |            | 
|---------------------------- |  | --------- | ---- | --------- | --------- |  | --------- | ------------------------------- |  |  | ------ | - | ------ | --------- | ----- | ------ | --------- | - | ---------------- | ---------------- |  | - | ---- |  |  |  | ---------- | 
|                             |  |           |      |           |           |  |           | Weighted Average Exercise Price |  |  |       
|                             |  |           |      | Number of |           |  | Number of |                                 |  |  |        |   |       
|                             |  | Number of |      |           | Senior    |  |           | Junior                          |  |  |        |   | Senior |           |       | Junior |           |   | Weighted-Average |                 
|                             |  | Common    |      |           | Preferred |  |           | Preferred                       |  |  | Common |   |        | Preferred |       |        | Preferred |   |                  | Remaining        | 
|                             |  | Shares    |      |           | Shares    |  |           | Shares                          |  |  | Shares |   |        | Shares    |       |        | Shares    |   |                  | Contractual Life | 
|                             |  |           |      |           |           |  |           |                                 |  |  |        |   |        |           |       |        |           |   |                  |                  | 
|Balance at January 1, 2003   |  |           | 5.5  |           |           |  | 0.5       |                                 |  |  | 0.4    |   |        | $         | 0.72  |        |           | $ | 8.80             |                  |  | $ | 8.97 |  |  |  | 8.27 years | 
|Options granted              |  |           | 0.7  |           |           |  |          |                                 |  |  |       |   |        |           | 10.58 |        |           |   |                 |                  |  |   |     |  |  |  |            | 
|Options exercised            |  |           | (1.1 | )         |           |  |          |                                 |  |  |       |   |        |           | 0.66  |        |           |   | 9.35             |                  |  |   | 9.59 |  |  |  |            | 
|Options canceled             |  |           | (0.2 | )         |           |  |          |                                 |  |  |       |   |        |           | 0.82  |        |           |   | 9.20             |                  |  |   | 9.41 |  |  |  |            | 
|Options redeemed             |  |           |     |           |           |  | (0.5      | )                               |  |  | (0.4   | ) |        |           |      |        |           |   | 9.72             |                  |  |   | 9.98 |  |  |  |            | 
|                             |  |           |      |           |           |  |           |                                 |  |  |        |   |        |           |       |        |           |   |                  |                  | 
|Balance at December 31, 2003 |  |           | 4.9  |           |           |  |          |                                 |  |  |       |   |        |           | 2.11  |        |           |   |                 |                  |  |   |     |  |  |  | 7.75 years | 
|Options granted              |  |           | 2.9  |           |           |  |          |                                 |  |  |       |   |        |           | 15.05 |        |           |   |                 |                  |  |   |     |  |  |  |            | 
|Options exercised            |  |           | (1.4 | )         |           |  |          |                                 |  |  |       |   |        |           | 0.76  |        |           |   |                 |                  |  |   |     |  |  |  |            | 
|Options canceled             |  |           | (0.3 | )         |           |  |          |                                 |  |  |       |   |        |           | 13.87 |        |           |   |                 |                  |  |   |     |  |  |  |            | 
|                             |  |           |      |           |           |  |           |                                 |  |  |        |   |        |           |       |        |           |   |                  |                  | 
|Balance at December 31, 2004 |  |           | 6.1  |           |           |  |          |                                 |  |  |       |   |        |           | 8.08  |        |           |   |                 |                  |  |   |     |  |  |  | 8.12 years | 
|Options granted              |  |           | 3.0  |           |           |  |          |                                 |  |  |       |   |        | $         | 11.68 |        |           |   |                 |                  |  |   |     |  |  |  |            | 
|Options exercised            |  |           | (1.2 | )         |           |  |          |                                 |  |  |       |   |        |           | 0.81  |        |           |   |                 |                  |  |   |     |  |  |  |            | 
|Options canceled             |  |           | (0.4 | )         |           |  |          |                                 |  |  |       |   |        |           | 12.57 |        |           |   |                 |                  |  |   |     |  |  |  |            | 
|                             |  |           |      |           |           |  |           |                                 |  |  |        |   |        |           |       |        |           |   |                  |                  | 
|Balance at December 31, 2005 |  |           | 7.5  |           |           |  |          |                                 |  |  |       |   |        | $         | 10.40 |        |           | $ |                 |                  |  | $ |     |  |  |  | 7.23 years | 
|                             |  |           |      |           |           |  |           |                                 |  |  |        |   |        |           |       |        |           |   |                  |                  | 



|                   |  |             |     | 
|------------------ |  | ----------- | --- | 
|                   |  | Exercisable |    
|                   |  | Shares      |    
|                   |  |             |    
|December 31, 2005: |  |             |     | 
|Common Stock       |  |             | 4.5 | 
|December 31, 2004: |  |             |     | 
|Common Stock       |  |             | 2.3 | 
|December 31, 2003: |  |             |     | 
|Common Stock       |  |             | 2.5 | 

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NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                         |  |                     |     |                  |                     |  |      |                  |               |   |             |  |  |                  |     |  |  |   |       | 
|------------------------ |  | ------------------- | --- | ---------------- | ------------------- |  | ---- | ---------------- | ------------- | - | ----------- |  |  | ---------------- | --- |  |  | - | ----- | 
|                         |  | Options Outstanding |     |                  |                    
|                         |  |                     |     |                  | Options Exercisable | 
|                         |  |                     |     | Weighted Average |                     |  |      |                  |               |  
|                         |  | Number              |     |                  | Remaining           |  |      | Weighted-Average |               |   | Number      |  |  | Weighted-Average |    
|Range of Exercise Prices |  | Outstanding         |     |                  | Contractual Life    |  |      | Exercise Price   |               |   | Exercisable |  |  | Exercise Price   |    
|                         |  |                     |     |                  |                     |  |      |                  |               |   |             |  |  |                  |    
|                         |  | (In millions)       |     |                  |                     |  |      |                  | (In millions) |   |             | 
|$ 0.53 - $11.14          |  |                     | 2.6 |                  |                     |  | 6.29 |                  |               | $ | 3.77        |  |  |                  | 1.7 |  |  | $ | 0.95  | 
|$11.86 - $14.28          |  |                     | 3.6 |                  |                     |  | 7.49 |                  |               | $ | 12.83       |  |  |                  | 1.5 |  |  | $ | 14.09 | 
|$14.51 - $20.00          |  |                     | 1.3 |                  |                     |  | 8.39 |                  |               | $ | 16.99       |  |  |                  | 1.3 |  |  | $ | 16.98 | 
|                         |  |                     |     |                  |                     |  |      |                  |               |   |             |  |  |                  |    
|$ 0.53 - $20.00          |  |                     | 7.5 |                  |                     |  | 7.23 |                  |               | $ | 10.40       |  |  |                  | 4.5 |  |  | $ | 10.11 | 
|                         |  |                     |     |                  |                     |  |      |                  |               |   |             |  |  |                  |    







|    |                        
|--- | -----------------------
|13. | Derivatives and Hedging







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NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|    |                                     
|--- | ------------------------------------
|14. | Restructuring and Impairment Charges





4-inch 6-inch 6-inch


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AMIS HOLDINGS, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


4-inch








|                             |  |           |      |       |             |   |            |           |  |   |       |   |  |   |      |  
|---------------------------- |  | --------- | ---- | ----- | ----------- | - | ---------- | --------- |  | - | ----- | - |  | - | ---- | -
|                             |  |           |      | Lease |             |   | Legal Fees |           |  |  
|                             |  | Severance |      |       | Termination |   |            | and Other |  |   |      
|                             |  | Costs     |      |       | Costs       |   |            | Costs     |  |   | Total |  
|                             |  |           |      |       |             |   |            |           |  |   |       |  
|Balance at January 1, 2003   |  | $         | 0.9  |       |             | $ | 0.3        |           |  |   |      |   |  |   | 1.2  |  
|2003 Expense                 |  |           | 1.7  |       |             |   |           |           |  |   |      |   |  |   | 1.7  |  
|2003 Paid                    |  |           | (1.9 | )*    |             |   | (0.1       | )         |  |   |      |   |  |   | (2.0 | )
|                             |  |           |      |       |             |   |            |           |  |   |       |  
|Balance at December 31, 2003 |  |           | 0.7  |       |             |   | 0.2        |           |  |   |      |   |  |   | 0.9  |  
|2004 Expense                 |  |           | 7.7  |       |             |   | 0.2        |           |  |   |      |   |  |   | 7.9  |  
|2004 Paid                    |  |           | (3.4 | )     |             |   | (0.1       | )         |  |   |      |   |  |   | (3.5 | )
|2004 Reserve Reversal        |  |           |     |       |             |   |           |           |  |   |      |   |  |   |     |  
|                             |  |           |      |       |             |   |            |           |  |   |       |  
|Balance at December 31, 2004 |  |           | 5.0  |       |             |   | 0.3        |           |  |   |      |   |  |   | 5.3  |  
|2005 Expense                 |  |           | 5.1  |       |             |   |           |           |  |   | 1.7   |   |  |   | 6.8  |  
|2005 Paid                    |  |           | (4.0 | )     |             |   | (0.1       | )         |  |   | (1.7  | ) |  |   | (5.8 | )
|2005 Reserve Reversal        |  |           | (1.3 | )     |             |   | (0.2       | )         |  |   |      |   |  |   | (1.5 | )
|                             |  |           |      |       |             |   |            |           |  |   |       |  
|Balance at December 31, 2005 |  | $         | 4.8  |       |             | $ |           |           |  | $ |      |   |  | $ | 4.8  |  
|                             |  |           |      |       |             |   |            |           |  |   |       |  






|  |                      
|- | ---------------------
|* | $0.6 million non-cash

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AMIS HOLDINGS, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                                                                                 
|--- | --------------------------------------------------------------------------------
|15. | Purchase of the Semiconductor Business of Flextronics
    International USA Inc.









|                                                                                                                                                    |  |   |       |  
|--------------------------------------------------------------------------------------------------------------------------------------------------- |  | - | ----- | -
|Cash paid to Flextronics International USA Inc.                                                                                                     |  | $ | 138.5 |  
|Acquisition-related expenses                                                                                                                        |  |   | 6.0   |  
|Receivable from Flextronics for a working capital adjustment                                                                                        |  |   | (5.2  | )
|Exit-related liability costs                                                                                                                        |  |   | 1.4   |  
|Operating liabilities assumed (including accounts payable of
    $5.6, deferred revenue of $1.4, and other current liabilities of
    $0.7 million) |  |   | 7.7   |  
|                                                                                                                                                    |  |   |      
|Total purchase price                                                                                                                                |  | $ | 148.4 |  
|                                                                                                                                                    |  |   |      

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NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                      |  |   |       | 
|------------------------------------- |  | - | ----- | 
|Trade accounts receivable, net        |  | $ | 10.7  | 
|Inventory, net                        |  |   | 4.2   | 
|Deferred costs                        |  |   | 1.2   | 
|Deferred tax asset                    |  |   | 3.6   | 
|Other current assets                  |  |   | 0.4   | 
|Property, plant and equipment         |  |   | 4.4   | 
|Acquisition-related intangible assets |  |   | 65.2  | 
|In-process research and development   |  |   | 0.8   | 
|Goodwill                              |  |   | 57.9  | 
|                                      |  |   |      
|Total purchase price allocated        |  | $ | 148.4 | 
|                                      |  |   |      



|                                            |  |             |      |             |          |  |    | 
|------------------------------------------- |  | ----------- | ---- | ----------- | -------- |  | -- | 
|                                            |  |             |      | Useful Life |         
|                                            |  | Total Value |      |             | in Years | 
|                                            |  |             |      |             |          | 
|Customer relationships                      |  | $           | 35.7 |             |          |  | 8  | 
|Proprietary technology                      |  |             | 25.2 |             |          |  | 4  | 
|Patents                                     |  |             | 2.4  |             |          |  | 10 | 
|Non-compete agreement                       |  |             | 1.9  |             |          |  | 3  | 
|                                            |  |             |      |             |          | 
|Total acquisition-related intangible assets |  | $           | 65.2 |             |          |  |    | 
|                                            |  |             |      |             |          | 



|                                    |  |              |       |  |      |   |       | 
|----------------------------------- |  | ------------ | ----- |  | ---- | - | ----- | 
|                                    |  | Years Ended  |      
|                                    |  | December 31: |      
|                                    |  |              |      
|                                    |  | 2005         |       |  | 2004 |  
|                                    |  |              |       |  |      |  
|Revenue                             |  | $            | 565.7 |  |      | $ | 588.0 | 
|Net income                          |  | $            | 15.5  |  |      | $ | 44.4  | 
|Basic net income per common share   |  | $            | 0.18  |  |      | $ | 0.54  | 
|Diluted net income per common share |  | $            | 0.18  |  |      | $ | 0.51  | 



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NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








16.     Acquisition of Dspfactory
Ltd.




|                         |  |   |      |  
|------------------------ |  | - | ---- | -
|Net tangible liabilities |  | $ | (0.1 | )
|Intangible assets        |  |   | 28.5 |  
|Goodwill                 |  |   | 15.2 |  
|                         |  |   |     
|Total                    |  | $ | 43.6 |  
|                         |  |   |     







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NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                                              
|--- | ---------------------------------------------
|17. | Operating Segments and Geographic Information







| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Integrated Mixed Signal Products: designs, manufactures
    and markets system-level integrated mixed signal products using
    the Companys proprietary wafer fabrication process
    technologies and the expertise of the Companys analog and
    mixed signal engineers. The Company also supplies mixed signal
    foundry services that leverage current process technologies. The
    Company applies its mixed signal expertise primarily for
    sensors, controls, high voltage outputs, applications utilizing
    digital signal processing, wireless or radio frequency
    communication and low power.
|
| | Structured Digital Products: designs, manufactures and
    markets structured digital products, which involve the
    conversion of higher cost field programmable gate arrays, or
    FPGAs, into lower cost digital semiconductors, and medium
    complexity prime digital semiconductors, which are customized
    solutions developed directly from customer specifications rather
    than from a pre-existing semi-standard integrated circuits.
    Opportunities are focused on the mid-range of production
    volumes, where the Company believes it can create the most value
    for its customers.       





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NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                              |                                     |              |   |       |            |  |   |       |  |  |   |       | 
|----------------------------- | ----------------------------------- | ------------ | - | ----- | ---------- |  | - | ----- |  |  | - | ----- | 
|                              |                                     | Integrated   |   |       | Structured |  |   |      
|                              |                                     | Mixed Signal |   |       | Digital    |  |   |      
|                              |                                     | Products     |   |       | Products   |  |   | Total | 
|                              |                                     |              |   |       |            |  |   |       | 
|Year ended December 31, 2005: |                                     |              |   |       |            |  |   |       |  |  |   |      
|                              | Net revenue from external customers |              | $ | 393.2 |            |  | $ | 110.4 |  |  | $ | 503.6 | 
|                              | Segment operating income            |              |   | 44.8  |            |  |   | 27.6  |  |  |   | 72.4  | 
|Year ended December 31, 2004: |                                     |              |   |       |            |  |   |       |  |  |   |      
|                              | Net revenue from external customers |              | $ | 397.7 |            |  | $ | 119.6 |  |  | $ | 517.3 | 
|                              | Segment operating income            |              |   | 71.7  |            |  |   | 22.9  |  |  |   | 94.6  | 
|Year ended December 31, 2003: |                                     |              |   |       |            |  |   |       |  |  |   |      
|                              | Net revenue from external customers |              | $ | 357.4 |            |  | $ | 96.7  |  |  | $ | 454.1 | 
|                              | Segment operating income            |              |   | 47.8  |            |  |   | 15.5  |  |  |   | 63.3  | 



|                                               |                                      |      |      |      |      |   |      |      |   |   |      |       |  
|---------------------------------------------- | ------------------------------------ | ---- | ---- | ---- | ---- | - | ---- | ---- | - | - | ---- | ----- | -
|                                               |                                      | 2005 |      |      | 2004 |   |      | 2003 |  
|                                               |                                      |      |      |      |      |   |      |      |  
|Total operating income for reportable segments |                                      | $    | 72.4 |      |      | $ | 94.6 |      |   | $ | 63.3 |      
|                                               | Restructuring and impairment charges |      |      | (5.3 | )    |   |      | (7.9 | ) |   |      | (21.7 | )
|                                               | Nonrecurring charges                 |      |      |     |      |   |      |     |   |   |      | (11.4 | )
|                                               |                                      |      |      |      |      |   |      |      |  
|Operating income                               |                                      | $    | 67.1 |      |      | $ | 86.7 |      |   | $ | 30.2 |      
|                                               |                                      |      |      |      |      |   |      |      |  







|                        |             |                            |       |   |       |   |       |      |       |   |       |   |       | 
|----------------------- | ----------- | -------------------------- | ----- | - | ----- | - | ----- | ---- | ----- | - | ----- | - | ----- | 
|                        |             | 2005                       |       |   | 2004  |   |       | 2003 |      
|                        |             |                            |       |   |       |   |       |      |      
|Geographic information: |             |                            |       |   |       |   |       |      |       |   |       |  
|                        | Revenue(1): |                            |       |   |       |   |       |      |       |   |       |   |      
|                        |             | United States              |       | $ | 192.6 |   |       | $    | 186.1 |   |       | $ | 174.2 | 
|                        |             | Other North America        |       |   | 21.4  |   |       |      | 31.8  |   |       |   | 11.6  | 
|                        |             | Europe                     |       |   | 190.3 |   |       |      | 213.9 |   |       |   | 184.6 | 
|                        |             | Asia-Pacific               |       |   | 99.3  |   |       |      | 85.5  |   |       |   | 83.7  | 
|                        |             |                            |       |   |       |   |       |      |      
|                        |             | Subtotal Non-United States |       |   | 311.0 |   |       |      | 331.2 |   |       |   | 279.9 | 
|                        |             |                            |       |   |       |   |       |      |      
|Total                   |             | $                          | 503.6 |   |       | $ | 517.3 |      |       | $ | 454.1 |  
|                        |             |                            |       |   |       |   |       |      |      

80



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AMIS HOLDINGS, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                    |                            |      |       |       |      |   |       |       | 
|----------------------------------- | -------------------------- | ---- | ----- | ----- | ---- | - | ----- | ----- | 
|                                    |                            | 2005 |       |       | 2004 |  
|                                    |                            |      |       |       |      |  
|Property, plant and equipment, net: |                            |      |       |       |      |   |       |      
|                                    | United States              |      | $     | 142.9 |      |   | $     | 152.6 | 
|                                    | Europe                     |      |       | 40.4  |      |   |       | 26.0  | 
|                                    | All other                  |      |       | 20.5  |      |   |       | 20.6  | 
|                                    |                            |      |       |       |      |  
|                                    | Subtotal Non-United States |      |       | 60.9  |      |   |       | 46.6  | 
|                                    |                            |      |       |       |      |  
|Total                               |                            | $    | 203.8 |       |      | $ | 199.2 |      
|                                    |                            |      |       |       |      |  






|    |                                                                                                              
|--- | -------------------------------------------------------------------------------------------------------------
|(1) | Revenue is attributed to geographic regions based on the
    shipments to customers located in those regions.





|    |                                     
|--- | ------------------------------------
|18. | Quarterly Financial Data (unaudited)

|                                                                                                        |  |                                      |       |   |       |   |       |       |  |   |       |  |  |    |       |  |    |   |       |    |  |   |       |  |  |   |       |  |  |   |       | 
|------------------------------------------------------------------------------------------------------- |  | ------------------------------------ | ----- | - | ----- | - | ----- | ----- |  | - | ----- |  |  | -- | ----- |  | -- | - | ----- | -- |  | - | ----- |  |  | - | ----- |  |  | - | ----- | 
|                                                                                                        |  | Year                                 |      
|                                                                                                        |  |                                      |      
|                                                                                                        |  | 2005                                 |       |   | 2004  |  
|                                                                                                        |  |                                      |       |   |       |  
|                                                                                                        |  | Q1(1)                                |       |   | Q2(2) |   |       | Q3(3) |  |   | Q4(4) |  |  | Q1 |       |  | Q2 |   |       | Q3 |  |   | Q4(5) | 
|                                                                                                        |  |                                      |       |   |       |   |       |       |  |   |       |  |  |    |       |  |    |   |       |    |  |   |       | 
|                                                                                                        |  | (In millions, except loss per share) |      
|Revenue                                                                                                 |  | $                                    | 115.9 |   |       | $ | 122.5 |       |  | $ | 125.6 |  |  | $  | 139.6 |  |    | $ | 128.3 |    |  | $ | 134.5 |  |  | $ | 131.2 |  |  | $ | 123.3 | 
|Gross profit                                                                                            |  | $                                    | 53.8  |   |       | $ | 60.2  |       |  | $ | 61.6  |  |  | $  | 61.6  |  |    | $ | 59.0  |    |  | $ | 63.2  |  |  | $ | 63.6  |  |  | $ | 60.5  | 
|Net income (loss)                                                                                       |  | $                                    | (11.1 | ) |       | $ | 11.3  |       |  | $ | 11.7  |  |  | $  | 8.7   |  |    | $ | 13.5  |    |  | $ | 15.4  |  |  | $ | 16.2  |  |  | $ | 7.3   | 
|Basic net income (loss) per common share                                                                |  | $                                    | (0.13 | ) |       | $ | 0.13  |       |  | $ | 0.14  |  |  | $  | 0.10  |  |    | $ | 0.16  |    |  | $ | 0.19  |  |  | $ | 0.20  |  |  | $ | 0.09  | 
|Diluted net income (loss) per common share                                                              |  | $                                    | (0.13 | ) |       | $ | 0.13  |       |  | $ | 0.13  |  |  | $  | 0.10  |  |    | $ | 0.16  |    |  | $ | 0.18  |  |  | $ | 0.19  |  |  | $ | 0.08  | 
|Weighted average number of common shares used to compute basic
    net income (loss) per common share   |  |                                      | 85.2  |   |       |   | 85.6  |       |  |   | 85.9  |  |  |    | 86.2  |  |    |   | 82.1  |    |  |   | 82.5  |  |  |   | 82.9  |  |  |   | 83.9  | 
|Weighted average number of common shares used to compute diluted
    net income (loss) per common share |  |                                      | 85.2  |   |       |   | 87.9  |       |  |   | 88.1  |  |  |    | 88.8  |  |    |   | 86.3  |    |  |   | 86.3  |  |  |   | 86.4  |  |  |   | 87.3  | 






|    |                                                                                                                                                                                                   
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | In the first quarter of 2005, the Company recorded nonrecurring
    charges of approximately $34.8 million related to
    redemption of the Companys senior subordinated notes.                  
|   
|(2) | In the second quarter of 2005, the Company recorded
    restructuring charges of approximately $1.0 million related
    primarily to the relocation of its sort operations to the
    Philippines.

81



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AMIS HOLDINGS, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(3) | The results of the Flextronics acquisition have been included in
    the Companys operations since the September 9, 2005
    acquisition date. The Company also recorded $0.8 million
    related to the write-off of in-process research and development
    in association with the Flextronics acquisition in the third
    quarter of 2005.                                                                                                                                                    
|   
|(4) | In the fourth quarter of 2005, the Company recorded
    restructuring charges of $3.8 million primarily related to
    the termination of certain employees related to its fab
    consolidation plan.                                                                                                                                                                                                                                                                                              
|   
|(5) | In the fourth quarter of 2004, the Company recorded
    restructuring charges of approximately $7.9 million
    primarily related to the termination of certain employees. The
    results of the Dspfactory acquisition have been included in the
    Companys operations since the November 12, 2004
    acquisition date. The Company also recorded $1.5 million
    related to the write-off of in-process research and development
    in association with the acquisition of Dspfactory, Ltd.

82



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|        |                                                                                         
|------- | ----------------------------------------------------------------------------------------
|ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
    ACCOUNTING AND FINANCIAL DISCLOSURE








|         |                        
|-------- | -----------------------
|ITEM 9A. | CONTROLS AND PROCEDURES

Controls and Procedures


10-Q 13a-15(e) 15d-15(e)






Managements Report on Internal Control Over Financial
Reporting


10-K.


Background and Remediation Actions


10-Q 10-Q


83



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##### Table of Contents









| |   |                                                                                                                                                                                                                                                                                                                         
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Updating our terms and conditions of sale, except where stated
    by contract, to ExWorks for delivery and specified that title
    and risk of loss passed to the buyer when the goods were made
    available for pickup by the buyer, or the buyers carrier
    for pickup at the location specified by the seller.
|
| |  | Sending notification to our customers of the change in our terms
    and conditions of sale.                                                                                                                                                                                                                            
|
| |  | Providing training on Incoterms (worldwide standard delivery
    terms) for certain customer service, logistics and finance
    personnel.                                                                                                                                                                              
|
| |  | Implementing stricter quarter-end cut-off procedures and more
    detailed revenue recognition process documentation.                                                                                                                                                                                                   

10-K,









|         |                  
|-------- | -----------------
|ITEM 9B. | OTHER INFORMATION






PART III







|         |                                                   
|-------- | --------------------------------------------------
|ITEM 10. | DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT





84



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|         |                       
|-------- | ----------------------
|ITEM 11. | EXECUTIVE COMPENSATION








|         |                                                                                                   
|-------- | --------------------------------------------------------------------------------------------------
|ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
    MANAGEMENT AND RELATED STOCKHOLDER MATTERS








|         |                                               
|-------- | ----------------------------------------------
|ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS








|         |                                       
|-------- | --------------------------------------
|ITEM 14. | PRINCIPAL ACCOUNTANT FEES AND SERVICES






PART IV







|         |                                           
|-------- | ------------------------------------------
|ITEM 15. | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES





| |                                                                                                                                                                                                                                                                                                                                                                                    
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (1) Financial Statements. See the Index to Financial
    Statements in Item 8.                                                                                                                                                                                                                                                                                                   
|
| | (2) Financial Statement Schedules. All financial statement
    schedules for which provision is made in the applicable
    accounting regulations of the Securities and Exchange Commission
    are not required under the related instructions, are
    inapplicable, or the required information has been provided in
    the consolidated financial statements or notes thereto.
|
| | (3) Exhibits. See Exhibit Index.                                                                                                                                                                                                                                                                                                                                                   

85



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##### Table of Contents






SIGNATURES






| |                    
| | -------------------
| | AMIS HOLDINGS, INC.



| |     |                   
| | --- | ------------------
| | By: | /s/ David A. Henry

| |                        
| | -----------------------
| |                        
| | David A. Henry         
| | Chief Financial Officer
|
| | Date: March 15, 2006   



|                                                         |  |                                                                                   |  |                |  | 
|-------------------------------------------------------- |  | --------------------------------------------------------------------------------- |  | -------------- |  | 
|Signature                                                |  | Title                                                                             |  | Date          
|                                                         |  |                                                                                   |  |               
|                                                        
|/s/ CHRISTINE KINGChristine King                         |  | President, Chief Executive Officer and Director (Principal
    Executive Officer) |  | March 15, 2006
|                                                        
|/s/ DAVID A. HENRYDavid A. Henry                         |  | Chief Financial Officer (Principal Financial and Accounting
    Officer)          |  | March 15, 2006
|                                                        
|/s/ DIPANJAN DEBDipanjan Deb                             |  | Director                                                                          |  | March 15, 2006
|                                                        
|/s/ COLIN SLADEColin Slade                               |  | Director                                                                          |  | March 15, 2006
|                                                        
|/s/ WILLIAM N.
    STARLING, JR.William N. Starling, Jr. |  | Director                                                                          |  | March 15, 2006
|                                                        
|/s/ GREGORY L. WILLIAMSGregory L. Williams               |  | Director                                                                          |  | March 15, 2006
|                                                        
|/s/ PAUL C. SCHORR IVPaul C. Schorr IV                   |  | Director                                                                          |  | March 15, 2006
|                                                        
|/s/ S. ATIQ RAZAS. Atiq Raza                             |  | Director                                                                          |  | March 15, 2006
|                                                        
|/s/ DAVID STANTONDavid Stanton                           |  | Director                                                                          |  | March 15, 2006
|                                                        
|/s/ JAMES A. URRYJames A. Urry                           |  | Director                                                                          |  | March 15, 2006

86



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Exhibit Index


|        |     |          |  |                                                                                                                                                                                                                                                                                          
|------- | --- | -------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |     |         
|No.     |     | Document
|        |     |         
|        | 3   | .1       |  | Restated Certificate of Incorporation of AMIS Holdings, Inc., as
    amended                                                                                                                                                                                                             
|        | 3   | .2       |  | Amended and Restated By-Laws of AMIS Holdings, Inc.(4)                                                                                                                                                                                                                                   
|        | 4   | .1       |  | Indenture dated as of January 29, 2003 among AMI
    Semiconductor, Inc., AMIS Holdings, Inc., AMI Acquisition LLC,
    AMI Acquisition II LLC and J.P. Morgan Trust Company,
    N.A.(1)                                                                                                
|        | 4   | .2       |  | Form of Certificate of Common Stock, par value $0.01 per
    share, of AMIS Holdings, Inc.(2)                                                                                                                                                                                            
|        | 10  | .1       |  | Credit Agreement dated as of December 21, 2000 among the
    Company, AMIS Holdings, Inc. (formerly named AMI Holdings,
    Inc.), the lenders party thereto and Credit Suisse First Boston
    Corporation, as Collateral Agent and Administrative Agent (the
    Credit Agreement)(3)
|        | 10  | .2       |  | Global Assignment and Acceptance and Amendment dated as of
    February 20, 2001 relating to the Credit Agreement(3)                                                                                                                                                                     
|        | 10  | .3       |  | Amendment No. 2, Waiver and Agreement dated as of
    February 6, 2002, relating to the Credit Agreement(3)                                                                                                                                                                              
|        | 10  | .4       |  | Amendment No. 3, Consent, Wavier and Agreement dated as of
    May 2, 2002, relating to the Credit Agreement(3)                                                                                                                                                                          
|        | 10  | .5       |  | Amendment No. 4, Waiver and Agreement dated as of
    September 6, 2002, relating to the Credit Agreement(3)                                                                                                                                                                             
|        | 10  | .6       |  | Summary of Director Compensation                                                                                                                                                                                                                                                         
|        | *10 | .7       |  | Amended and Restated Employment Agreement dated as of
    August 15, 2001 by and between AMIS Holdings, Inc. and
    Christine King(13)                                                                                                                                                  
|        | 10  | .8       |  | First Amended and Restated Shareholders Agreement among
    AMIS Holdings, Inc. and the holders named therein(4)                                                                                                                                                                        
|        | 10  | .9       |  | Supply Agreement between STMicroelectronics, NV and AMI
    Semiconductor Belgium BVBA dated June 26, 2002(8)                                                                                                                                                                            
|        | 10  | .10      |  | Form of warrant held by Merchant Capital, Inc. to purchase
    shares of common stock of AMIS Holdings, Inc.(8)                                                                                                                                                                          
|        | 10  | .11      |  | Form of warrant held by Nippon Mining Holdings, Inc. (formerly
    Japan Energy Electronic Materials, Inc.) to purchase shares of
    common stock of AMIS Holdings, Inc.(8)                                                                                                             
|        | 10  | .12      |  | Agreement dated May 8, 2002 between AMI Semiconductor
    Belgium BVBA, AMI Semiconductor, Inc. and STMicroelectronics NV
    for the acquisition of the business of the Mixed Signal Division
    of Alcatel Microelectronics(8)                                                        
|        | 10  | .13      |  | Advisory Agreement dated December 21, 2000 by and between
    AMI Holdings, Inc., AMI Spinco Inc. and Francisco Partners GP,
    LLC(8)                                                                                                                                                  
|        | 10  | .14      |  | Advisory Agreement dated December 21, 2000 by and between
    AMI Holdings, Inc., AMI Spinco, Inc. and TBW LLC(8)                                                                                                                                                                        
|        | *10 | .15      |  | Amended and Restated AMIS Holdings, Inc. 2000 Equity Incentive
    Plan(12)                                                                                                                                                                                                              
|        | 10  | .16      |  | Form of Indemnification Agreement for directors and executive
    officers of AMIS Holdings, Inc.(13)                                                                                                                                                                                    
|        | *10 | .17      |  | Appendix to the Minutes of the General Shareholders
    Meeting regarding the Appointment of Mr. Walter Mattheus in
    the Office of Compensated Director of AMI Semiconductor Belgium
    BVBA dated June 26, 2002(8)                                                                 
|        | 10  | .18      |  | Assignment and Assumption Agreement dated June 26, 2002
    between STMicroelectronics NV and AMI Semiconductor, Inc.;
    Assignment and Assumption Agreement dated June 26, 2002
    between Alcatel Microelectronics NV and AMI Semiconductor,
    Inc.(14)                           
|        | *10 | .19      |  | Amended and Restated AMIS Holdings, Inc. 2003 Employee Stock
    Purchase Plan(5)                                                                                                                                                                                                        
|        | 10  | .20      |  | Amendment No. 1 to the Advisory Agreement filed as
    Exhibit 10.13(13)                                                                                                                                                                                                                 
|        | 10  | .21      |  | Amendment No. 1 to the Advisory Agreement filed as
    Exhibit 10.14(13)                                                                                                                                                                                                                 

87



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|        |     |          |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|------- | --- | -------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |     |         
|No.     |     | Document
|        |     |         
|        | 10  | .22      |  | Asset Purchase Agreement dated September 9, 2004 among AMI
    Semiconductor, Inc., Emma Mixed Signal C.V., AMI Semiconductor
    Canada Company, AMIS Holdings, Inc., Dspfactory Ltd. and the
    other parties named therein(5)                                                                                                                                                                                                                 
|        | 10  | .23      |  | Share Purchase Agreement dated September 9, 2004 among AMI
    Semiconductor Netherlands B.V., AMIS Holdings, Inc., Dspfactory
    Ltd. and the other parties named therein(5)                                                                                                                                                                                                                                                                    
|        | *10 | .24      |  | Key Manager Incentive Plan for 2006                                                                                                                                                                                                                                                                                                                                                                                                               
|        | *10 | .25      |  | Form of 2000 Equity Incentive Plan Stock Option Agreement
    (Nonstatutory Stock Option)(6)                                                                                                                                                                                                                                                                                                                                                      
|        | *10 | .26      |  | Key Manager Incentive Plan for 2004, as amended(16)                                                                                                                                                                                                                                                                                                                                                                                               
|        | *10 | .27      |  | Key Manager Incentive Plan for 2005(7)                                                                                                                                                                                                                                                                                                                                                                                                            
|        | 10  | .28      |  | Amendment No. 1 to the First Amended and Restated
    Shareholders Agreement(15)                                                                                                                                                                                                                                                                                                                                                                 
|        | 10  | .29      |  | Contract of Lease, as amended(15)                                                                                                                                                                                                                                                                                                                                                                                                                 
|        | 10  | .30      |  | Memorandum of Agreement, as amended(15)                                                                                                                                                                                                                                                                                                                                                                                                           
|        | *10 | .31      |  | Terms of Compensation Arrangement with Jon Stoner                                                                                                                                                                                                                                                                                                                                                                                                 
|        | *10 | .32      |  | Employment Agreement dated as of July 26, 2005 by and
    between AMIS Holdings, Inc. and Christine King(9)                                                                                                                                                                                                                                                                                                                                       
|        | *10 | .33      |  | Terms of Compensation Arrangement with Charlie Lesko                                                                                                                                                                                                                                                                                                                                                                                              
|        | *10 | .34      |  | Terms of Compensation Arrangement with David Henry                                                                                                                                                                                                                                                                                                                                                                                                
|        | 10  | .35      |  | Credit Agreement dated as of April 11, 2004, among AMIS
    Holdings, Inc., AMI Semiconductor, Inc., the lenders party
    thereto and Credit Suisse First Boston Corporation as Collateral
    Agent and Administrative Agent(10)                                                                                                                                                                                                                
|        | 10  | .36      |  | Asset Purchase Agreement dated as of September 9, 2005,
    between AMI Semiconductor, Inc. Emma Mixed Signal C.V., AMI
    Semiconductor Israel Ltd., AMIS Holdings, Inc. and Flextronics
    Semiconductor, Inc., Flextronics International USA, Inc.,
    Flextronics Semiconductor Ltd. (UK), Flextronics Semiconductor
    Ltd., Peripheral Imaging Corporation, KMOS Semiconductor, Inc.,
    and Flextronics Semiconductor Design, Inc.(11)
|        | 10  | .37      |  | Amendment No. 1 Consent, Waiver and Agreement dated
    August 19, 2005, to the Credit Agreement dated as of
    April 1, 2005(11)                                                                                                                                                                                                                                                                                                                
|        | 10  | .38      |  | Agreement in Principle                                                                                                                                                                                                                                                                                                                                                                                                                            
|        | 21  | .1       |  | Direct and Indirect Subsidiaries of AMIS Holdings, Inc.                                                                                                                                                                                                                                                                                                                                                                                           
|        | 23  | .1       |  | Consent of Ernst & Young LLP, Independent Registered
    Public Accounting Firm                                                                                                                                                                                                                                                                                                                                                                   
|        | 31  | .1       |  | Rule 13a-14(a) Certification of Chief Executive Officer                                                                                                                                                                                                                                                                                                                                                                                           
|        | 31  | .2       |  | Rule 13a-14(a) Certification of Chief Financial Officer                                                                                                                                                                                                                                                                                                                                                                                           
|        | 32  | .1       |  | Section 1350 Certification of Chief Executive Officer                                                                                                                                                                                                                                                                                                                                                                                             
|        | 32  | .2       |  | Section 1350 Certification of Chief Financial Officer                                                                                                                                                                                                                                                                                                                                                                                             






| |   |                                                                                        
| | - | ---------------------------------------------------------------------------------------
| | * | This Exhibit constitutes a management contract or compensatory
    plan or arrangement.



| |     |                                                                                                                                                 
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------
| | (1) | Incorporated by reference to the exhibits to our registration
    statement on
    Form S-4
    (No. 333-103070)
    filed on February 10, 2003.
|
| | (2) | Incorporated by reference to the exhibits to our registration
    statement on
    Form S-1
    (No. 333-108028)
    filed on August 15, 2003.  
|
| | (3) | Incorporated by reference to the exhibits to our registration
    statement on
    Form S-4/ A
    (No. 333-103070)
    filed on May 13, 2003.  
|
| | (4) | Incorporated by reference to the exhibits to our annual report
    on Form 10-K for
    the year ended December 31, 2003.                       
|
| | (5) | Incorporated by reference to the exhibits to our quarterly
    report on
    Form 10-Q for the
    quarter ended September 25, 2004.            

88



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| |     |                                                                                                                                       
| | --- | --------------------------------------------------------------------------------------------------------------------------------------
| | (6) | Incorporated by reference to the exhibits to our current report
    on Form 8-K dated
    October 1, 2004, filed on February 7, 2005. 
|
| | (7) | Incorporated by reference to the exhibit to our current report
    on Form 8-K dated
    February 16, 2005 filed on February 22, 2005.



| |     |                                                                                                                                                                          
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (8) | Incorporated by reference to the exhibits to the registration
    statement on
    Form S-4/ A
    (No. 333-103070)
    of AMI Semiconductor, Inc. filed on June 2, 2003.



| |     |                                                                                                                                  
| | --- | ---------------------------------------------------------------------------------------------------------------------------------
| | (9) | Incorporated by reference to the exhibits to our current report
    on Form 8-K dated
    July 26, 2005, filed on August 1, 2005.



|     |                                                                                                                                                                           
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(10) | Incorporated by reference to the exhibits to our quarterly
    report on
    Form 10-Q for the
    quarter ended April 2, 2005.                                           
|    
|(11) | Incorporated by reference to the exhibits to our quarterly
    report on
    Form 10-Q for the
    quarter ended October 1, 2005.                                         
|    
|(12) | Incorporated by reference to the exhibits to our quarterly
    report on
    Form 10-Q for the
    quarter ended September 27, 2003).                                     
|    
|(13) | Incorporated by reference to the exhibits to our registration
    statement on
    Form S-1/ A
    (No. 333-108028)
    filed on September 18, 2003.                      
|    
|(14) | Incorporated by reference to the exhibits to the registration
    statement on
    Form S-4/ A
    (No. 333-103070)
    of AMI Semiconductor, Inc. filed on June 13, 2003.
|    
|(15) | Incorporated by reference to the exhibits to our annual report
    on Form 10-K for
    the year ended December 31, 2004.                                                 
|    
|(16) | Incorporated by reference to the exhibits to our annual report
    on Form 10-K for
    the year ended December 31, 2005.                                                 

89