QUALCOMM and TSMC Collaborate on 90nm Low-Power Process for Wireless Applications

  —  QUALCOMM Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, and Taiwan Semiconductor Manufacturing Company Ltd. (TSMC) (NYSE: TSM), the world's largest dedicated semiconductor foundry, today announced the 2004 delivery of QUALCOMM’s first 90 nanometer (nm) low-power Mobile Station Modem™ (MSM™) solutions using TSMC’s 90nm low-power process technology. The new low power and low-k 90nm Nexsys Technology for SoC(SM) greatly reduces mobile application power consumption, improves processor performance and enables the integration of more features onto a single chip.

“We continue to build on the established relationship between QUALCOMM and TSMC to optimize process technologies for 3G CDMA,” said Dr. Sanjay K. Jha, president of QUALCOMM CDMA Technologies. “At QUALCOMM, we’re committed to leading the wireless industry, and TSMC’s Nexsys 90nm process provides our customers with a path to greater integration and improved performance for their wireless products.”

“We’ve worked with QUALCOMM for several years on process advancements and process development for wireless applications. As a strategic partner, QUALCOMM has access to our advanced process and R&D capabilities,” said Rick Tsai, president of TSMC. “This latest collaboration combines the best of our foundry process development expertise and our world class manufacturing capabilities with QUALCOMM’s systems technology knowledge and design expertise.”

Production of QUALCOMM’s products using TSMC’s Nexsys 90nm process for wireless begins with the MSM6xxx™ family. In addition, the MSM7xxx™ family will be targeted first to TSMC’s 90nm process and will continue to evolve to more advanced process technologies. QUALCOMM’s Mobile Station Modem (MSM) family of chipsets provides handset manufacturers with a portfolio of solutions to address next-generation 3G handsets. These chipsets support major third-generation (3G) and second-generation (2G) worldwide wireless standards, and enable high-resolution multimedia applications, including video, audio, graphics and enhanced 3D animation. The MSM chipsets are highly integrated, single-chip solutions that offer increased processing capacity combined with lower power consumption, resulting in an enhanced user experience.

TSMC’s Nexsys 90nm low-k technology for system-on-chip (SoC) design features the industry’s first full 90nm design system, including the industry’s most extensive portfolio of silicon-proven IP and libraries and the industry’s first complete design flow that responds specifically to nanometer design challenges.

The Nexsys 90nm logic family includes the general-purpose process (G) as well as low-power (LP) and high-speed (HS) options. Each supports multiple Vt options for improved power/speed/leakage tradeoffs. TSMC’s Nexsys 90nm technology is deployed in TSMC Fab 12, the industry’s largest 300mm production facility. It is also expected to be deployed in TSMC Fab 14 when the facility is ramped for production.

TSMC is the world's largest dedicated semiconductor foundry, providing the industry’s leading process technology and the foundry industry’s largest portfolio of process-proven library, IP, design tools and reference flows. The company operates one advanced 300mm wafer fab, five eight-inch fabs and one six-inch wafer fab. TSMC also has substantial capacity commitments at its wholly-owned subsidiary, WaferTech, and its joint venture fab, SSMC. In early 2001, TSMC became the first IC manufacturer to announce a 90-nm technology alignment program with its customers. TSMC's corporate headquarters are in Hsinchu, Taiwan. For more information about TSMC please see http://www.tsmc.com.

QUALCOMM Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company’s CDMA digital technology. Headquartered in San Diego, Calif., QUALCOMM is included in the S&P 500 Index and is a 2003 FORTUNE 500® company traded on The Nasdaq Stock Market® under the ticker symbol QCOM.

Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties, including the Company’s ability to successfully design and have manufactured significant quantities of CDMA components on a timely and profitable basis, the extent and speed to which CDMA is deployed, change in economic conditions of the various markets the Company serves, as well as the other risks detailed from time to time in the Company’s SEC reports, including the report on Form 10-K for the year ended September 28, 2003, and most recent Form 10-Q.

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QUALCOMM is a registered trademark of QUALCOMM Incorporated. MSM, Mobile Station Modem, MSM6xxx, and MSM7xxx are trademarks of QUALCOMM Incorporated. All other trademarks and service marks are the property of their respective owners.