TSMC Commits to China Automotive Excellence by Meeting AEC Guidelines

Taiwan Semiconductor Manufacturing Company, Ltd. (TWSE: 2330, NYSE: TSM) today announced that it plans to launch the automotive industry's first process qualification specification and service package for automotive-grade semiconductor manufacturing at the China IC Design Conference being held in Xiamen on December 2.

The company also announced that its Fab 10, located in Shanghai, is prepared to manufacture automotive grade ICs.

The automotive process qualification specification, made broadly public today, was first proposed at the Automotive Electronic Council's (AEC) annual Reliability Workshop in June 2008. Semiconductor devices in automobiles wear out quickly due to the stringent operating environment, and it is critical that the inherent manufacturing process can support semiconductor devices that will last far beyond the vehicle's lifetime.

TSMC has also developed a comprehensive Automotive Service Package to complement customers' test coverage and test methodology to reduce the field failure rate. TSMC Automotive Service Package incorporate tightened process control, device level screen limit, and wafer sorting scrap criteria, additional SPC monitoring, preferred tools, etc. It significantly reduces process variation and outliers.

"Integrated circuits of all types are playing a larger role in the automotive industry. Our commitment is to support automotive IC technology including innovations that are taking place in China," said Jason Chen, Vice President, Worldwide Sales and Marketing, TSMC. "We are backing this commitment with action by dedicating our efforts at Fab 10 in Shanghai to accelerate the growth of China's automotive present and future."

TSMC Fab 10 in Shanghai, along with multiple fabs in Taiwan, has successfully established the capability of supporting the automotive service package. The automotive process route in Fab 10 is available for global auto supply chain companies, including those in China.

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, IP, 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(TM), 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.

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