Altera Successfully Transitions PLDs to TSMC’s 0.13μm All-Layer Copper ProcessAltera’s Next Generation Products to Use 0.13μm All-Layer Copper Process

Hsinchu, Taiwan, March 14, 2001 -- Altera Corporation (Nasdaq: ALTR), a leading programmable logic device (PLD) supplier, today announced that it has successfully developed a high density PLD test chip on a 0.13μm, all-layer copper process and has already achieved production worthy yields. Altera expects next generation products built using this new process to be up to 50 percent faster than its current APEX 20KE devices that are manufactured on a 0.18μm process. By leveraging the 0.13μm process, Altera expects to achieve significant die size advantages over its competitors, which will allow it to offer the lowest cost, high density devices to the marketplace.

“Aggressive adoption of the latest process technology has been a key component of Altera’s success,” said Francois Gregoire, Altera vice president of technology. “This proves our commitment to our customers that we will deliver the most advanced, leading-edge solutions. As we continue to serve the communications market, this meets the increasing demands for flexibility, increased bandwidth, and faster time-to-market.”

This major milestone is the result of an outstanding partnership with Taiwan Semiconductor Manufacturing Company (TSMC) and is unmatched by any other programmable logic device (PLD) company in the industry. This advanced process, which has both 0.13μm transistors and 0.13μm all-copper interconnect, will allow Altera to supply the highest density and highest performance devices in the PLD marketplace at the lowest cost.

“Altera’s outstanding commitment to use advanced technology for its newest product families has made them an instrumental partner in advanced technology development,” said Ed Ross, president of TSMC North America. “This partnership has allowed TSMC to push ahead of the International Technology Roadmap for Semiconductors bringing this foundry to the worldwide forefront of device performance and integration.”

Altera plans on using TSMC’s 0.13μm, all-copper process on next generation products, which will be available later this year. By leveraging this process, Altera will be able to add more features than any other product family on a smaller die size.

Safe Harbor

This press release contains “forward-looking statements” that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally preceded by words that imply a future state such as “expects” or “plans” or that imply that a particular future event or events will occur such as “will”. Investors are cautioned that all forward-looking statements in this release involve risks and uncertainty, including without limitation the risks that actual product performance may differ materially from those projected in the forward-looking statements, that the company’s competitors may achieve die size advantages over the company’s products or may develop higher performing products or products with higher densities than those offered by the company, that the company’s yields will not be sufficient to support projected pricing, that the company’s next generation products will not be successfully transitioned to the latest process technologies, or that products will not be available as scheduled. Please refer to the company’s Securities and Exchange Commission filings, copies of which are available from the company without charge.

About TSMC

TSMC is the world’s largest dedicated semiconductor foundry, providing the industry’s leading process technology, library and IP options and other leading-edge foundry services. TSMC operates two six-inch wafer fabs and six eight-inch wafer fabs. The Company also has substantial capacity commitments at two joint ventures fabs (Vanguard and SSMC) and WaferTech. In 2000, TSMC produced the