TSMC and Fujitsu Sign Foundry Agreement to Manufacture 0.35um 16M DRAM

Science Park, Hsin-Chu, Taiwan, June 14, 1996 -- Taiwan Semiconductor Manufacturing Company Ltd. (TSMC) and Fujitsu Limited today announced an agreement whereby Fujitsu will provide information and assistance for TSMC's development of 0.35 micron DRAM technology and TSMC will commit to Fujitsu 0.35 micron capacity which can be used to produce 16M and 64M DRAMs.

The information and assistance from Fujitsu will expedite TSMC's 0.35 micron DRAM technology development to reach volume production levels. TSMC will commence production of 16M DRAMs or more advanced products for Fujitsu in its new 8-inch fab from 1997 through the year 2000. The production period may be extended per mutual agreement.

"We are pleased to work with Fujitsu in a partnership that reaffirms our commitment to providing state-of-the-art manufacturing in support of the most advanced semiconductor products," said Mr. Donald Brooks, President of TSMC. "The program will help TSMC accelerate the development of 0.35 micron DRAM technology, and thus in the near future, the company will provide advanced manufacturing services for a wide range of customers."

Mr. Kazunari Shirai, President of Fujitsu's Electronic Devices Group, stated, "We are satisfied with TSMC's high productivity and quality shown in our partnership in logic and memory production. Taking advantage of TSMC's advanced technologies, we will be able to supply more DRAM products to the satisfaction of our customers in early 1997."

Fujitsu Limited is a leading company in the global information technology industry. With operations in more than 100 countries around the world, the Fujitsu Group supplies a wide range of products, including PCs, semiconductors, communications, software and services.

TSMC is the world's largest and the fastest growing dedicated semiconductor foundry manufacturing more than one million six-inch wafers in 1995. The company offers CMOS fabrication processes that focus on advanced logic, mixed signal and a wide array of memory processes. The company posted growth of 57% in 1994 and 49% in 1995. Currently, the company's 6-inch fabs (Fabs I, IIA, and IIB) run at full capacity putting out more than 100,000 wafers per month. Fab III, which commenced 8-inch wafer output in September of 1995, will be in volume production for a variety of customers ramping to 25,000 8-inch wafers per month by the end of 1996. TSMC fabs are located in Hsin-Chu, Taiwan. The company has subsidiaries in the United States and Europe. The company recently announced plan to build its first U.S. foundry, a $1.2 billion joint venture with Altera and other long-standing customers.