Annual Report and Accounts 2010

TSMC

Dr. Shang-yi Chiang, Senior Vice President of R&D at TSMC describes their partnership with ARM that develops physical IP across TSMC’s process nodes extending to 20nm

TSMC is the originator of the dedicated semiconductor foundry model, providing industry-leading process technology and the largest portfolio of process-proven IP, design tools and reference flows. Our 2010 capacity totals over 11.3 million (8-inch equivalent) wafers. TSMC is the foundation for IC innovation and is the first foundry to provide 40nm and 28nm production capability for ARM technology- based chips. The first optimised ARM technology-based 28nm chips are expected in 2011.

Central to the TSMC-ARM collaboration is our mission to be the technology and capacity provider for the global IC industry. That is why our estimated 2010 R&D investment is around US$945 million and we anticipate that commitment increasing to US$1.1 billion in 2011.

Going hand-in-hand with this commitment is our belief that design tool and IP readiness have a great impact on advanced technology development. Earlier this year, ARM and TSMC signed an agreement to optimise system-on-chip development on TSMC process nodes extending to 20nm. This was a watershed moment in semiconductor industry history because it brought together two leading companies into a forward-looking, long-term relationship that could benefit virtually every IC device company.

The real crux of this agreement and our relationship with ARM is that advanced semiconductor manufacturing technology requires earlier and tighter collaboration throughout the supply chain. As a result of our efforts, ARM and TSMC will help designers optimise the power, performance and area challenge for ARM cores using TSMC’s process technology. It also means that designers can count on this collaboration for many years because the agreement extends to 20nm manufacturing processes.

TSMC and ARM have worked closely together on physical IP technology for nearly 15 years starting at the 180nm process node. Since then, the TSMC-ARM collaboration has delivered many results through implementations targeted to consumer electronics, mobile devices, tablet PCs and server applications.

ARM and TSMC have been at the forefront of semiconductor excellence for over 20 years. We look forward to our continued collaboration.