AppliedMicro-TSMC Collaboration Brings Power Architecture® Microprocessors to TSMC Technology Platforms

SUNNYVALE, Calif. – Sept. 25, 2009 – Applied Micro Circuits Corporation, or AppliedMicro (NASDAQ: AMCC), a global leader in energy conscious computing and communications solutions, and Taiwan Semiconductor Manufacturing Company (NYSE:TSMC) today announced a collaboration enabling AppliedMicro’s Power Architecture® microprocessors to be manufactured on TSMC’s industry-leading technology platform first at 90nm then moving to 65nm and 40nm soon after.

The agreement signals the first time that AppliedMicro’s embedded microprocessors are available beyond complex and costly Silicon-on-Insulator (SOI) fabrication processes. The first product of this collaboration, the AppliedMicro APM 83290 processor, operates at 1.5GHz which represents the highest performance for a Power Architecture processor manufactured on bulk CMOS technology, thus highlighting the benefits of successful technology partnership with TSMC.

“The collaboration with TSMC marks an entirely new milestone for Power Architecture processing as it enables us to reach many low-cost application areas that were impractical for processors built in SOI technology,” said Robert Fanfelle, Associate Vice President of Strategic Marketing for AppliedMicro. “TSMC’s 90nm CMOS technology is stable and mature and it offers an unbeatable combination of performance and price flexibility for a new generation of embedded computing applications.”

“TSMC values the collaboration with AppliedMicro because by pooling our strengths it signals a new wave of innovation for both companies,” said Pan-Wei Lai, Vice President of Business Development at TSMC North America. “Power Architecture technology is highly versatile and adaptable for a wide variety of embedded applications and AppliedMicro’s plans for new processor designs promise to extend the relationship between our two companies as we explore ways to bring about improvements on TSMC’s advanced technology platforms.”

AppliedMicro Power Architecture processor families have forged market leadership positions in wireless access points, cellular base stations and multifunction printers. Moreover, the company’s expertise in communications technology and advanced peripheral development around Power Architecture cores continues to capture market share from major networking, storage and consumer OEMs. Prospective system designers can leverage an extensive ecosystem of industry-leading partners encompassing operating systems, development tools, software platforms, board-level products, and design services allowing rapid time to market product release.

“Our company’s collaboration with TSMC heralds a new era in Power Architecture computing as it becomes more accessible for systems designers that want an excellent balance of high performance and low power consumption for today’s energy-conscious system designs,” said Robert Fanfelle, Associate Vice President of Strategic Marketing at AppliedMicro. “Our processor and system-on-a-chip expertise combined with TSMC’s experience and technology provide a powerful launching point for Power Architecture based solutions as we enable new classes of products and systems.”

The announcement kicks off a long-term strategic relationship between AppliedMicro and TSMC designed to widen the availability of Power Architecture embedded processing across TSMC’s competitive bulk technology platform. The move extends AppliedMicro’s energy efficient product emphasis leadership by leveraging the benefits of TSMC’s high-performance, low-power processes.

AppliedMicro Overview
AppliedMicro is a global leader in energy efficient sustainable solutions to process, transport, and store information for the next generation of Internet data center and carrier central office. A leader in high speed signal processing, IP and Ethernet packet processing, and embedded processors, AppliedMicro's patented innovations provide high value solutions in telecom, enterprise and consumer applications. AppliedMicro's corporate headquarters are located in Sunnyvale, California. Sales and engineering offices are located throughout the world. For further information regarding AppliedMicro, visit the company’s Web site at http://www.appliedmicro.com.

About TSMC
TSMC is the world’s largest dedicated semiconductor foundry, providing the industry’s leading process technology, and the foundry’s largest portfolio of process-proven libraries, IP, design tools and reference flows. The Company’s total managed capacity in 2008 exceeded 9-million (8-inch equivalent) wafers, including capacity from two advanced 12-inch –GigaFabs™ four eight-inch fabs, one six-inch fab, as well as TSMC’s wholly owned subsidiaries, WaferTech and TSMC (China) and its joint venture fab, SSMC. TSMC is the first foundry to provide 40nm production capabilities. Its corporate headquarters are in Hsinchu, Taiwan. For more information about TSMC, please visit, www.tsmc.com.

AppliedMicro and the AppliedMicro logo are trademarks of Applied Micro Circuits Corporation. Power Architecture is a trademark licensed by Power.org. The PowerPC name and logo are registered trademarks of IBM Corporation and used under license. All other trademarks mentioned herein are the intellectual property of their respective owners.