TSMC Announced Collaboration with NetLogic Microsystems

NetLogic Microsystems, Inc. (NASDAQ:NETL), a leader in the design and development of knowledge-based processors and high-speed integrated circuits, and Taiwan Semiconductor Manufacturing Company (TWSE:2330) (NYSE:TSM) (TSMC) today announced their collaboration on the industry-leading 40nm-G semiconductor process technology for NetLogic Microsystems' next-generation advanced knowledge-based processors and 10/40/100 Gigabit Ethernet physical layer (PHY) solutions. NetLogic Microsystems is one of first companies to tape-out and sample multiple silicon products in TSMC's advanced 40nm technology node.

NetLogic Microsystems is currently sampling its NLP2040 and NLP3040 PHY devices, the industry's first single-die quad-port 10 Gigabit Ethernet (10GbE) PHY devices, both of which are manufactured in the advanced 40nm process to deliver the highest performance and lowest power consumption for next-generation switches, routers and blade servers addressing the data center, enterprise networking, storage and service provider markets. In addition, NetLogic Microsystems is sampling the leading-edge NLP10000, the industry's first 100 Gigabit Ethernet PHY solution, which is also manufactured in the advanced 40nm process and offers customers unprecedented scalability for data-center, metro and long haul applications that require a 10X increase in performance while maximizing energy efficiency.

NetLogic Microsystems will also be taping out its next-generation knowledge-based processor, the NL11000 device, in TSMC's 40nm process. The NL11000 knowledge-based processor will offer significantly higher performance, lower power and cost advantages as a result of the close collaboration with TSMC. NetLogic Microsystems has developed a suite of custom circuits optimized around TSMC's 40nm node, including high-speed serial interface technology, analog and clocking circuitry, core processing elements and other standard cells, as well as refining the design and tape-out flow for this node.

This collaboration extends upon the long-standing relationship between TSMC and NetLogic Microsystems on the use of advanced cost-effective half-node technologies, including 55nm, 80nm and 110nm. The companies expect to broaden the relationship to include the high-performance Multi-Core, Multi-Threaded Processor product line from RMI Corporation, with which NetLogic Microsystems has entered into a definitive agreement to merge. RMI recently announced the industry's most advanced multi-core, multi-threaded processor, the XLP™ processor, which is also being designed on TSMC's 40nm-G technology, providing synergies between the NetLogic Microsystems and RMI in custom IP and cell development on this node, as well as verification and tape-out cross-experience. RMI's use of the TSMC 40nm node will provide them with significant power, performance and cost advantages over competitive designs which use the 65nm node. The merger with RMI is expected to close by the end of the third quarter of 2009.

The worldwide growth in broadband services and rich media content has resulted in significant bandwidth demands on carrier optical transport networks (OTN), as well as access aggregation networks for PON, DSL, cable, 3G/4G mobile wireless and WiMAX. In addition, major data center network managers are moving to increase network throughputs to 40/100GE in order to support the exponential demand for video, peer-to-peer and virtualization services. The 40nm process node helps NetLogic Microsystems further enhance its technology leadership, and provide its customers the ability to drive enhanced value and increased functionality at every performance level. Compared with 65nm technology, 40nm technology offers 50% smaller die size, 30% lower power and 30% higher performance.

"We are pleased to continue our close collaboration with TSMC on its most advanced process nodes," said Ron Jankov, president and CEO at NetLogic Microsystems. "The long-standing relationship with TSMC as our reliable foundry partner and the migration of our products to the latest 40nm-G process technology demonstrate our continued commitment to developing and delivering best-in-class products to our customers worldwide."

"We are delighted to once again be working with NetLogic Microsystems as one of the lead customers for our advanced 40nm technology node," said Rick Cassidy, president of TSMC North America. "This is a significant achievement for NetLogic Microsystems to so quickly migrate their highly complex, high logic density and very high performance products to our 40nm-G process. The performance, cost and power benefits of our advanced 40nm technology will provide significant benefits to the innovative technologies in NetLogic Microsystems' industry-leading knowledge-based processors, 10/40/100G PHY solutions and RMI's advanced multi-core, multi-threaded processors, enabling Tier One OEMs to develop next-generation systems that power tomorrow's Internet networks."

NetLogic Microsystems is now sampling its NL11000 product in 40nm and has starting shipments of its quad-port 10GE PHY and 100 GE PHY in 40nm. For pricing or delivery details, please contact [email protected].

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