TSMC Employs Cadence Encounter Platform in New TSMC Reference Flow 4.0

Cadence Design Systems, Inc. (NYSE: CDN), today announced that Taiwan Semiconductor Manufacturing Company, Ltd. [(TSMC) (TAIEX: 2330, NYSE: TSM)] has adopted the Cadence(R) Encounter(TM) digital IC design platform as an integral part of TSMC's new Reference Flow 4.0, which is now available to TSMC customers through TSMC online, the company's web-based eFoundry resource center. This move is part of the companies' on-going collaborative efforts to optimize the silicon design chain for mutual customers by addressing difficult nanometer design challenges, such as full-chip signal integrity closure. It builds upon the agreement announced earlier this year, whereby Cadence became the first full-line supplier of TSMC libraries integrated with complete design solutions from Cadence.

"We found that the Encounter platform provides a fast signal integrity (SI) closure solution for high-performance designs. We have used the Encounter platform based Reference Flow 4.0 to achieve successful tape outs," said FC Tseng, deputy chief executive officer at TSMC. "These projects are proof of the value Cadence solutions bring to our next-generation Reference Flow 4.0. The powerful combination of Cadence's design automation strength and TSMC's advanced silicon technologies ultimately benefits customers by helping them foresee and solve complex nanometer design issues."

TSMC's Reference Flow 4.0 now incorporates the Encounter platform from hierarchical silicon virtual prototyping to physical implementation. The flow also incorporates Cadence I/O placement optimization and RDL routing solutions that help ensure silicon/package optimization.

"TSMC continues to provide its customers with advanced design methodologies and we are pleased that TSMC has validated and adopted the Encounter platform in the TSMC Reference Flow 4.0," said Ray Bingham, president and CEO of Cadence Design Systems. "We are continuing to strengthen our collaboration with TSMC to provide mutual customers shorter design cycles and first-pass silicon success."

About Cadence

Cadence is the world's leader in electronic design technologies, methodology services, and design services. Cadence solutions are used to accelerate and manage the design of semiconductors, computer systems, networking and telecommunications equipment, consumer electronics, and a variety of other electronics-based products. With approximately 5,200 employees and 2002 revenues of approximately $1.3 billion, Cadence has sales offices, design centers, and research facilities around the world. The company is headquartered in San Jose, Calif., and traded on the New York Stock Exchange under the symbol CDN. More information about the company, its products and services is available at www.cadence.com.