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.