Fujitsu Microelectronics and TSMC to Collaborate on Leading-edge Process Technology

Tokyo and Hsin-chu, Taiwan, R.O.C – April 30, 2009 - Fujitsu Microelectronics Limited and Taiwan Semiconductor Manufacturing Company, Ltd. (TWSE: 2330, NYSE: TSM) today announced that they will collaborate on leading-edge process technology production for the manufacturing of Fujitsu Microelectronics’ products. Under an agreement between the companies, Fujitsu Microelectronics will expand its 40-nanometer generation logic IC business with production at TSMC’s fabs.

The collaborative effort will bring together Fujitsu Microelectronics’ IC design technologies, leading edge imaging and communication intellectual property (IP), and high-quality technical support to customers, especially in Japan, with TSMC’s foundry-leading process technology and capability. This advanced technology engagement should enable both companies to create new business for themselves and for their prospective customers.

The two companies also announced that they intend to initiate discussions on collaborative development of high-performance process technologies for 28-nanometer and below for Fujitsu Microelectronics’ product applications.

“From the aspect of its advanced process technologies and large-scale production capacity, TSMC is the most attractive semiconductor foundry partner”, said Haruki Okada, president of Fujitsu Microelectronics Limited. “By continuing to create our advantages in fine-pitch process technologies through this partnership, we can further grow our ASIC and ASSP (*1) product businesses.”

“Fujitsu Microelectronics is clearly a world-class leader in advanced high-speed and low-power technologies, design engineering, and differentiated IP. Given TSMC's long-standing commitment to Japan's semiconductor market, and our on-going investment and dedication to advanced process technology, our collaboration with Fujitsu Microelectronics represents a new best-in-class solution for many system companies,” said Dr. Rick Tsai, president & CEO of TSMC.

About Fujitsu Microelectronics Limited (FML)

Fujitsu Microelectronics Limited designs and manufactures semiconductors, providing highly reliable, optimal solutions and support to meet the varying needs of its customers. Products and services include ASICs/COT, ASSPs, power management ICs, and flash microcontrollers, with wide-ranging expertise focusing on imaging, wireless, automotive and security applications. Fujitsu Microelectronics also drives power efficiency and environmental initiatives. Headquartered in Tokyo, Fujitsu Microelectronics Limited was established as a subsidiary of Fujitsu Limited on March 21, 2008. Through its global sales and development network, with sites in Japan and throughout Asia, Europe, and the Americas, Fujitsu Microelectronics offers semiconductor solutions to the global marketplace. For more information: http://jp.fujitsu.com/fml/en/

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, IPs, 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.

Notes:
*1: ASIC and ASSP
ASIC: Application specific IC. Customized ICs for specific applications (customers).
ASSP: Application specific standard product. IC products for specific applications, such as image processing and network-related processing.