Virtual Silicon Launches Comprehensive Foundry Library Offering for UMC's 0.13 Micron Worldlogic Process

SUNNYVALE, Calif.----Oct. 16, 2000--Virtual Silicon Technology, Inc., and United Microelectronic Corporation (UMC) (NYSE:UMC), today announced a complete set of eSilicon libraries for the all copper, low-k dielectric, UMC 0.13 micron Worldlogic(SM) process jointly developed with IBM and Infineon. The eSilicon family of embedded semiconductor components includes foundry-specific standard cell libraries, multi-drive I/O pads, a broad selection of memory compilers including single-port RAM, dual-port RAM, ROM, and register files, and the continued expansion of Virtual Silicon's mixed-signal strategy with high speed I/O pads, and phase-locked loop compilers.

Most of these components are licensed at no cost to qualified end users. This comprehensive development program includes the fabrication of several test chips using UMC's exclusive Silicon Shuttle® prototyping service. The Silicon Shuttle is a multi-wafer test chip program that reduces customer mask cost for product prototyping. Customers using the Shuttle can be assured of the best ESD and latchup reliability, the most accurate timing model to silicon correlation, and the highest quality of new embedded components.

``Early access to a complete ASIC solution enables leading-edge customers to get their designs into production before their competitors,'' said Taylor Scanlon, chief executive officer at Virtual Silicon Technology. ``This eSilicon product offering at 0.13 micron technology allows customers to hit the streets running as the industry's most advanced process technology becomes available.''

``We are seeing tremendous customer interest in our 0.13 micron Worldlogic technology, which remains on schedule for pilot production qualification at the end of this year,'' said Jim Ballingall, vice president of marketing for UMC. ``Our 0.13 micron technology rollout strategy requires the early availability of critical design components. Virtual Silicon has an excellent track record with UMC and has already developed quality library products for our 0.18 micron and 0.15 micron technologies. Our relationship with Virtual Silicon has helped our customers capitalize on our industry lead in the delivery of advanced process technology.''

Availability

The UMC 0.13-micron eSi-Route/8(TM) high-density standard cell library and the eSi-Pads(TM) I/O pad set will be available in Q4 2000. Memory and PLL compilers will become available during Q1 of 2001. Systems-on-chip companies seeking information of the performance and density of UMC's 0.13-micron process should contact UMC.

About UMC

UMC, a world leading semiconductor foundry, operates seven wafer fabs in Taiwan's Hsinchu Science Park. UMC's Japanese subsidiary, Nippon Foundry Inc., has one fab in Japan and UMC's joint venture with Hitachi, Trecenti Technologies, is readying to ramp production in its 300mm fab in Japan. UMC has also started construction on a 300mm facility in Taiwan's Tainan Science Park, with target production scheduled to start by Q3 2001. UMC is a leader in foundry technology, with facilities ramping to reach an annual output of 2.4 million eight-inch equivalent wafers per year in 2000. UMC's joint development program with IBM and Infineon Technologies schedules introduction of the Worldlogic standard 0.13-micron technology this year. UMC serves customers around the world through sales and marketing offices located in the United States, Japan, and the Netherlands. UMC can be found on the web at http://www.umc.com.

Note from UMC Concerning Forward-Looking Statements

Some of the statements in the foregoing announcement are forward looking within the meaning of the U.S. Federal Securities laws, including statements about future outsourcing, wafer capacity, technologies, business relationships and market conditions. Investors are cautioned that actual events and results could differ materially from these statements as a result of a variety of factors, including conditions in the overall semiconductor market and economy; acceptance and demand for products from UMC; and technological and development risks.

About Virtual Silicon Technology

Virtual Silicon Technology is a leading supplier of embedded semiconductor technology to manufacturers and designers of complex systems-on-chip. The company provides process-specific embedded components including standard cell libraries, I/Os, SRAM compilers, mixed-signal functions, PLL compilers and embedded flash/EEPROM solutions. Customers include leading semiconductor manufacturers and foundries, ASSP designers, and systems-on-chip developers who demand the highest quality, maximum performance, lowest power and optimum densities for their semiconductor innovations. For more information on Virtual Silicon Technology and its products, please direct customer inquiries to Mahesh Tirupattur at (408) 548-2726, email address: mahesh@virtual-silicon.com or go to www.virtual-silicon.com.

eSilicon, eSi-Route/8, eSi-Pad, eSi-RAM, eSi-ROM, eSi-PLL, The Heart of Great Silicon, Silicon Ready, IP Ambassador, Design Service Ambassador, and Virtual Silicon are trademarks of Virtual Silicon Technology, Inc. Gold IP and Silicon Shuttle are service marks of UMC.

Contact:
     Virtual Silicon Technology
     Mahesh Tirupattur, 408/548-2726
     mahesh@virtual-silicon.com
     or
     VitalCom PR
     Karen Tyrrell, 650/637-8212 ext. 204
     karen@vitalcompr.com
     or
     UMC in Taiwan
     Alex Hinnawi, 886 2-2700-6999 ext. 6958
     alex_hinnawi@umc.com.tw
     or
     KJ Communications for UMC in the US
     Eileen Elam, 650/917-1488
     KjcomE@cs.com