IBM and Chartered reach development and sourcing agreement

IBM and Chartered Semiconductor Manufacturing have announced a joint development and manufacturing agreement designed to provide customers with greater access to advanced semiconductor technologies.

IBM and Chartered Semiconductor Manufacturing, one of the world’s top three silicon foundries, have announced a joint development and manufacturing agreement designed to provide customers with greater access to advanced semiconductor technologies and sourcing flexibility.

Under terms of the multi-year development agreement, the two companies plan to jointly develop and align on 90 nanometer (nm) and 65nm logic processes for foundry chip production on 300 millimetre (mm) silicon wafers. Additionally, the two companies may explore an extension to the agreement to include 45nm technology.

To assist foundry customers in designing with these technologies, IBM and Chartered have also agreed to work together with third-party providers of design tools and open-standard formats to help customers more easily move their products between the two companies for production.

The agreement also includes a reciprocal manufacturing arrangement between Chartered and IBM. Chartered will be able to offer its customers some capacity in IBM’s new 300mm chip manufacturing facility in East Fishkill, New York. In turn, IBM expects to utilise some capacity in Chartered’s 300mm Fab 7 in Singapore to help meet additional future capacity requirements. Financial details of the agreement were not disclosed.

Through the agreement, IBM and Chartered expect to achieve scale, cycle time and cost efficiencies in both leading-edge process technology development and 300mm manufacturing, while also providing customers multiple sources of supply.

The baseline 90nm technology is targeted for 300mm-wafer production in East Fishkill in the third quarter 2003. In order to assist customer product planning on next-generation technology, the companies intend to make details of their 65nm development efforts known to customers in the fourth quarter 2003.