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Fujitsu Microelectronics and Taiwan Semiconductor Manufacturing Company on Thursday formally extended their agreement over joint co-development of process technologies to 28nm node. As a result, chips developed by Fujitsu Microelectronics will be made at TSMC’s fabs in Taiwan. In addition, the two companies will share some of their know-how technologies.

The two companies plan to jointly develop enhanced 28nm high-performance process technology, presumably featuring high-k metal gate dielectrics. Initial 28nm samples are expected to ship toward the end of 2010. TSMC will produce products developed by Fujitsu using the new fabrication process. Earlier this year Fujitsu decided to outsource production of 40nm chips to the Taiwan-based contract maker of semiconductors.

“We are rapidly progressing in our previously-announced collaboration with TSMC on 40nm process technology, with several product designs in progress at present. With this further agreement with TSMC on 28nm high-performance process technology development and production, we combine both companies’ strengths to create greater value for our customers,” said Haruyoshi Yagi, corporate senior vice president of Fujitsu Microelectronics Limited.

This collaborative effort combines Fujitsu Microelectronics’ expertise and strength in advanced high-speed process and low-power design technologies with TSMC’s expertise and strength in power-efficient high- performance logic/SoC process.

“Fujitsu Microelectronics selected TSMC as a partner based in part on TSMC’s unsurpassed record of developing and ramping advanced technologies,” commented Jason Chen, vice president of worldwide sales and marketing at TSMC.

Extending the collaboration to 28nm will provide the opportunity for both companies to capitalize on a competitive and high-performance 28nm technology based on TSMC’s 28nm technology portfolio that includes high-performance and low-power applications, according to the two companies.

The two companies are also discussing possibilities for collaborating on advanced packaging that could include joint developments that combine Fujitsu Microelectronics’ strengths in high-performance lead-free and ultra-high-pin count packaging technologies, with TSMC’s strength in chip-package integration and advanced Cu/ELK interconnect.

Tags: Fujitsu, TSMC, Semiconductor, 28nm

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