SAN JOSE, Calif.—June 7, 2005—Cadence Design Systems, Inc. (NYSE: CDN) (Nasdaq: CDN) and Taiwan Semiconductor Manufacturing Company (NYSE: TSM) today announced the integration of the Cadence® Encounter™ digital IC design platform and Cadence Allegro® system interconnect platform into TSMC's Reference Flow 6.0. This reference flow, which supports designs targeting TSMC's Nexsyssm 65-nanometer, process technologies, includes innovative Cadence software for power optimization and analysis, design for manufacturing (DFM), chip-package integration, and design for test (DFT). This latest milestone in the ongoing design chain collaboration between the two companies delivers an RTL-to-package reference flow to accelerate time-to-volume for high-performance designs and low-power designs. It delivers a comprehensive methodology to address complex design issues at 90 and 65 nanometers, such as tight manufacturing parameters, an exponential increase in leakage power, and new extraction requirements. Within Reference Flow 6.0, Cadence technologies address these key issues by performing concurrent routing and dual via insertion, supporting aggressive leakage power reduction strategies and optimizing package performance and cost. “Reference Flow 6.0's Cadence track incorporates Cadence technologies to lower the entry barrier for designers targeting TSMC's advanced processes,” said Ed Wan, senior director of design service marketing at TSMC. “We collaborated closely with Cadence to meet the complex requirements that designers are facing at 65 nanometers, which include power management, chip and package co-design, and manufacturing.” “Our collaboration with leaders throughout the design chain provides silicon-validated design solutions necessary for market success,” said Pankaj Mayor, group director of business development for Industry Alliances at Cadence. “We focus on correlating models, software and IP with silicon by creating test chips such as the low-power test chip with TSMC through the Silicon Design Chain Initiative earlier this year. Leveraging those results through TSMC Reference Flow 6.0 improves the probability of nanometer design success.” Power Optimization and Analysis TSMC Reference Flow 6.0 incorporates key elements of the Cadence Encounter platform — voltage domain-aware technologies from Reference Flow 5.0—to create power-gated paths and dynamic voltage scaling. Designers can use these technologies to design with multiple supply voltages and power domains, leakage power and de-coupling capacitance optimization, automatic power grid generation, and dynamic voltage (IR) drop analysis with actual IC package load models. The Encounter platform provides a scalable methodology to go from a non-power domain design to power domain-based designs. Elements of the Encounter platform within Reference Flow 6.0 include Encounter RTL Compiler global synthesis, Encounter Test, SoC Encounter Global Physical Synthesis (GPS), Fire & Ice® QXC parasitic extraction, VoltageStorm® Dynamic Gate power rail analysis, and CeltIC® Nanometer Delay Calculator (NDC), which work together to deliver high quality of silicon (QoS), improved timing closure, and reduced area. DFM Cadence SoC Encounter Global Physical Synthesis (GPS), which is included in Reference Flow 6.0, brings to the IC design process critical manufacturing issues such as wire spreading, double-cut via optimization, and metal fill. SoC Encounter GPS can automatically insert metal fill into a placed and routed design to achieve a metal density within the range recommended by TSMC design rules. It also enables automated wire-spreading and double-cut (dual) via insertion, which positively impact yield. Chip-Package Co-Design Routability, timing, and IR drop are major concerns for chip and package co-design and integration. To help optimize chip and package design flows, TSMC features the Cadence Allegro system interconnect platform in Reference Flow 6.0. Allegro Package Designer can help achieve design of high-performance interconnect across the IC, package, and PCB domains. The Allegro platform comprises a common constraint-driven flow across design entry, including extraction of package parasitics and inclusion of these package effects into the IC-level timing and static and dynamic IR drop modeling environments. Within TSMC Reference Flow 6.0, the Allegro platform addresses 65 nanometers and below design challenges, such as flip-chip interconnect density, gigahertz signal integrity and clean power delivery of low-voltage, high power consumption chips. DFT and True-Time Delay Test Encounter Test has been validated by TSMC in Reference Flow 6.0 to address DFT and delay test ATPG. Increasing design complexity and nanometer-scale geometries make manufacturing test critical for IC success. Creating an effective, full-chip test architecture, minimizing test cost, maximizing product quality, and quickly ramping yield are major design challenges. Encounter Test addresses these issues within the TSMC reference flow with the industry's most advanced, comprehensive test solution, including DFT, delay test, compression and diagnostics. Availability TSMC Reference Flow 6.0, through the Company's customer web site, TSMC Online, or by contacting any TSMC account manager.

About TSMC

TSMC is the world's largest dedicated semiconductor foundry, providing the industry's leading process technology and the foundry industry's largest portfolio of process-proven library, IP, design tools and reference flows. The company operates two advanced twelve-inch wafer fabs, five eight-inch fabs and one six-inch wafer fab. TSMC also has substantial capacity commitments at its wholly-owned subsidiary, WaferTech and TSMC (Shanghai), and its joint venture fab, SSMC. In early 2001, TSMC became the first IC manufacturer to announce a 90-nm technology alignment program with its customers. TSMC's corporate headquarters are in Hsinchu, Taiwan. For more information about TSMC please see

About Cadence

Cadence enables global electronic-design innovation and plays an essential role in the creation of today's integrated circuits and electronics. Customers use Cadence software and hardware, methodologies, and services to design and verify advanced semiconductors, consumer electronics, networking and telecommunications equipment, and computer systems. Cadence reported 2004 revenues of approximately $1.2 billion, and has approximately 4,700 employees. The company is headquartered in San Jose, Calif., with sales offices, design centers, and research facilities around the world to serve the global electronics industry. More information about the company, its products, and services is available at

Cadence, the Cadence logo, Allegro, CeltIC, Fire & Ice and VoltageStorm are registered trademarks and Encounter is a trademark of Cadence Design Systems, Inc. All other trademarks are the property of their respective owners.