In the light of cut-throat competition on the market of semiconductors and chip manufacturing, Fujitsu Microelectronics and Taiwan Semiconductor Manufacturing Company said on Thursday that they were looking forward to jointly develop 28nm process technologies and below. In addition, Fujitsu said it would outsource manufacturing of 40nm chips to TSMC.

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

Under an agreement between the companies, Fujitsu Microelectronics will expand its 40nm generation logic integratred circuits business with production at TSMC’s fabs. This advanced technology engagement should enable both companies to create new business for themselves and for their prospective customers.

Most importantly, the two companies also announced that they intend to initiate discussions on collaborative development of high-performance process technologies for 28nm and below for Fujitsu Microelectronics’ product applications. Back in late 2008 the head of Fujitsu Microelectronics said that the company was interested in either co-development of process technologies or even combining semiconductor businesses with other players.

Now it does seem to be the right time for Fujitsu Microelectronics to find a partner to develop process technologies: all of its rivals in Japan have already either created semiconductor joint-ventures, sold their businesses to others or initiated collaboration in fabrication processes’ development with overseas partners.

“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 and chief executive officer of TSMC.

Tags: Fujitsu, TSMC, Semiconductor, Business, 40nm, 28nm