TSMC and Virage Logic Expand Partnership to Include Distribution of TSMC-Brand Libraries

Hsin-Chu, Taiwan, December 10, 2002 -- Taiwan Semiconductor Manufacturing Company (NYSE: TSM) and Virage Logic (Nasdaq: VIRL), a leading provider of application-optimized semiconductor IP platforms, today announced a distribution and support agreement that will provide designers with highly integrated library support and services for system-on-chip (SoC) design. The new development kicks off a significant expansion of both companies’ services, as well as a new model for distributing TSMC’s internally-developed, process-tuned standard cell and I/O libraries.

The new agreement enhances an ongoing relationship between the two companies. Under terms of the agreement, Virage Logic will distribute and support TSMC’s advanced 150-, 130- and Nexsys™ 90-nanometer standard cell and I/O libraries either alone or integrated with its own ASAP Memory™ or STAR Memory System™ embedded memory products. In addition, Virage Logic will continue in parallel to sell and support its own TSMC process-specific libraries, including ASAP Logic™ Metal Programmable Cell and Standard Cell libraries, which are differentiated from the TSMC standard cell library in market focus and architecture.

TSMC’s 150-, 130- and Nexsys™ 90-nanometer standard cell and I/O libraries are designed to enhance manufacturability through process tuning and close integration with all major electronic design automation (EDA) tools. The Nexsys™ 90-nm libraries also include enhanced features that enable SoC design, such as dual-threshold power tuning that enables designers to integrate high-speed and low-leakage functionality on the same chip at the same time.

“TSMC’s Design Service Division has been developing process-tuned libraries for both internal and external use almost since the company’s inception,” said Dr. Genda Hu, vice president of Corporate Marketing at TSMC. “This agreement now gives SoC developers access to integrated libraries through a partner who is engaged with them at the crucial circuit and device design level. As a committed Library Alliance partner and long time distributor of its own libraries targeted to TSMC’s process technologies, Virage Logic is the ideal partner with which to kick-off this new program.”

Virage Logic is focused on delivering semiconductor IP platforms that are designed for manufacturability. Adding TSMC process-tuned standard cell and I/O libraries to Virage Logic’s existing portfolio of TSMC-9000 compliant memory compilers and logic products greatly enhances a SoC designer’s ability to achieve their budget and schedule goals. All of the Virage Logic IP components – including the TSMC libraries – are complimented by the industry-leading Virage Logic customer support team.

“Our strategy is to provide highly reliable IP to meet the demanding specifications of SoC designs,” said Adam Kablanian, CEO and president, Virage Logic. “To do that, we deliver application-optimized semiconductor IP platforms that are built on advanced technology in both the memory and logic arenas. By distributing TSMC’s standard cell libraries, we provide designers with more choices, greater flexibility and, most importantly, faster time-to-volume.”

TSMC’s libraries are developed using the rigorous TSMC Library 9000™ verification procedure, the industry benchmark for library product quality, reliability and completeness. Without these pre-defined and verified libraries, chip designers would have to employ custom design techniques requiring huge resource outlays to both build and verify similar elements.

Pricing and Availability

TSMC’s standard cell and I/O libraries are available now from Virage Logic at no cost to the user. Standard charges apply for Virage Logic’s embedded memories and logic IP. Support charges apply to all products.

About Virage Logic

Virage Logic (Nasdaq: VIRL) is a global leader in application-optimized semiconductor IP platforms based on memory, logic and design tools that are silicon proven and production ready. Virage Logic meets market demands for cost reduction, while improving performance and reliability for fabless and integrated device manufacturer (IDM) companies focused on the consumer, communications and networking, handheld and portable, and graphics markets. For more information, please contact Virage Logic at www.viragelogic.com or Telephone: (877) 360-6690 (toll free) or (510) 360-8000.

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 one advanced 300mm wafer fab, five eight-inch fabs and one six-inch wafer fab. TSMC also has substantial capacity commitments at two joint ventures fabs (Vanguard and SSMC) and at its wholly-owned subsidiary, WaferTech. In early 2001, TSMC became the first IC manufacturer to announce a 90-nanometer technology alignment program with its customers. TSMC's corporate headquarters are in Hsin-Chu, Taiwan. For more information about TSMC to http://www.tsmc.com.

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Statements made in this news release other than statements of historical fact are forward-looking statements, including, for example, statements relating to Virage Logic's business outlook, new products and new relationships. Forward-looking statements are subject to a number of known and unknown risks and uncertainties, which might cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include Virage Logic's ability to maintain and develop new relationships with third-party foundries, adoption of technologies by semiconductor companies and increases in the demand for their products, the company's ability to overcome the challenges associated with establishing licensing relationships with semiconductor companies, the company's ability to obtain royalty revenues from customers in addition to license fees, business and economic conditions generally and in the semiconductor industry in particular, competition in the market for embedded memories and other risks including those described in the Company's Annual Report on Form 10-K for the period ended September 30, 2001, filed with the Securities and Exchange Commission (SEC) on December 19, 2001, and in Virage Logic's other periodic reports filed with the SEC, all of which are available from Virage Logic or from the SEC's website (www.sec.gov), and in press releases and other communications. Virage Logic disclaims any intention or duty to update any forward-looking statements made in this news release.

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