TSMC Unveils Design Service AllianceSets Standard for Foundry Library, IP and IC Design Implementation Partners

Hsinchu, Taiwan, March 21, 2000- Taiwan Semiconductor Manufacturing Company (TSMC) (NYSE:TSM) today announced a new service infrastructure known as the Design Service Alliance. This umbrella organization encompasses the three critical service areas that make up the IC design process: third-party libraries, IP and IC design implementation services to help designers deliver on the promise of system-on-chip.

"TSMC's Design Service Alliance coordinates an entire value-chain that is of direct benefit to our customers," said Mike Pawlik, vice president of corporate marketing for TSMC. "By utilizing the full range of resources available under this alliance, our customers can achieve better designs, more reliable design reuse, and faster time-to-market. At the same time, the alliance enables flexible design team management, allowing organizations to respond dynamically to changing market conditions."

TSMC's Design Service Alliance partners provide industry-leading, silicon-verified libraries, IP and design services directly to designers in fabless semiconductor companies, IDMs and systems houses. DSA partners provide best-of-class, silicon-verified libraries; high-performance, leading-edge intellectual property cores; unprecedented accuracy in design simulation, validation and verification; faster cycle time from specification through tapeout to finished wafers; and access to experienced designers and developers of complex functions. The goal of the alliance is to enable designers to:

Confidently apply their designs to TSMC technology

Quickly integrate and reuse multiple TSMC-specific IP cores Draw upon expert systems and designers for fast time-to-market for SOC designs

The three primary elements of the design service alliance include:

Library Alliance: TSMC's integrated Library Alliance provides the shortest time to tapeout and to volume production. TSMC's Library Alliance encompasses the foundry industry's most comprehensive process-specific libraries, including standard logic cells, I/Os and embedded SRAM memories; the foundry industry's only documented evaluation process; a network of best-of-class third-party library vendors with direct access to technical services and early access to leading-edge, process-specific technologies.

IC Design Alliance: TSMC's IC Design Alliance includes industry-leading electronic design automation (EDA) companies and a global alliance of qualified IC design implementation experts. TSMC's EDA member companies represent the cream of the EDA industry. Each plays an integral role in TSMC's design methodology, having been provided with unprecedented access to engineering and technology resources within the foundry.

The Design Service Alliance includes 26 design implementation companies around the world with more than 2,500 man-years of experience creating and verifying real product designs in TSMC silicon.

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 seven eight-inch wafer fabs (Fab 3, 4, 5, 6, TASMC, WSMC and WaferTech), and two six-inch wafer fabs (Fabs 1 and 2). In addition, the company has begun construction of a $1.2 billion joint venture fab with Philips Semiconductor, which is scheduled to open in Singapore in 2000. TSMC recently broke ground for Fabs 7 and Fab 12, the company!|s first 12-inch wafer fabs. In 2000, TSMC expects to have the capacity for nearly 3.4 million 8-inch equivalent wafers. Fabrication processes offered by TSMC include CMOS logic, mixed-mode, volatile and non-volatile memory, and BiCMOS. TSMC's corporate headquarters are in Hsin-Chu, Taiwan.