TSMC Licenses DSP Group's Oak DSP Core

HSIN-CHU, TAIWAN AND SANTA CLARA, CA, January 22, 1997 -- Taiwan Semiconductor Manufacturing Company (TSMC) and DSP Group announced today that TSMC licensed the OakDSPCore digital signal processor technology from DSP Group, Inc. of Santa Clara, California. This OakDSPCore license is in addition to TSMC's previous license of DSP Group's PineDSPCore. TSMC will integrate the OakDSPCore into its application specific integrated circuit (ASIC) cell library and plans to make the cell library available to its customers for a wide variety of applications in communications, multimedia, embedded control and general purpose digital signal processing.

The OakDSPCore is DSP Group's second generation DSP core. Both the Pine- and OakDSPCores are 16-bit general purpose low-power, low-voltage, high speed digital signal processing (DSP) core designed for speech and audio processing, telecommunications, digital cellular and embedded control applications. The OakDSPCore is more advanced and more powerful than the PineDSPCore.

"TSMC has focused not only on providing pure foundry manufacturing services, but also on offering ASIC services to customers as well. The PineDSPCore extended our ASIC library offerings to enhance the product performance. With the addition of the OakDSPCore license, we will be better able to serve our customers.", said Dr. Quincy Lin, vice-president of TSMC, "Furthermore, TSMC will port OakDSPCore to TSMC's 0.35m process technology, in addition to the original 0.6m technology offered by the DSP Group. This will benefit customers for a full range of applications in such growing markets as high-end video conference ICs, high-speed modem ICs and high speed/high density hard disc controllers."

"It is a pleasure to be working with TSMC and we are delighted that TSMC has chosen the OakDSPCore to extend its digital signal processing capabilities," said Irving Gold, vice president of marketing and sales DSP core technology of DSP Group. "We are pleased that TSMC intends to make the OakDSPCore available in its ASIC library for use by its clients in a wide variety of products." Gold continued.

Located in Hsin-Chu, Taiwan, TSMC is the world's largest and fastest growing dedicated semiconductor foundry, manufacturing 1.46 million six-inch wafers per year in 1996. In 1991, TSMC started its ASIC services which include a wide range of library support, from conventional gate arrays to high complexity cell based families and to the newly developed cell based array families. With compilable memory blocks, efficient datapath construction and key megacell functions, customers can enjoy their 'System on Silicon' ASIC design with TSMC and a seamless transition to high volume production.

TSMC's net sales for 1996 were US$1.4 billion, posting growth of 37%. Currently, the company has two 6-inch wafer fabs (Fab I and II) and one 8-inch fabs (Fab III) that are in operation. TSMC's new 8-inch Fab IV will commence volume production in February, 1997. Fab V will begin production by the end of this year. The company has subsidiaries in the US and Europe, and a joint venture foundry in the US. For more information about TSMC, visit their web site: http://www.tsmc.com.tw

DSP Group Inc. (NASDAQ:DSPG) is a leader in the development and marketing of high-performance cost-effective digital signal processing cores and solutions for the consumer telephony, computer telephony and personal computer industries. By combining three key technologies -- speech processing algorithms, telephony algorithms and digital signal processors (DSPs) -- the company has delivered a wide range of enabling application-specific DSPs to these markets. DSP Group is Headquartered in Santa Clara, California. For more information about DSP Group, contact at 408/986-4300 or visit their web site: http://www.dspg.com.