Thu, Apr 05, 2001 page17

• VIA enlists TSMC in its chip battle

  ONE-TWO PUNCH The combination of the chip developer and the local manufacturing giant looks set to develop into a major challenge to Intel's dominance of the market

  • By Dan Nystedt / STAFF REPORTER
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  VIA Technologies Inc (威盛電子) plans to launch a speedy, powerful new microprocessor by June at the latest, thanks to the manufacturing prowess of Taiwan Semiconductor Manufacturing Co (TSMC, 台積電).

  "In May or June, we should be able to reach 1 gigahertz just by shifting to an upgraded manufacturing process," said Manuela Mercandelli, spokeswoman for VIA, referring to the company's new C3 and Samuel II line of microprocessors. The company will add a 1.2GHz chip by the end of the year.

  Only Intel and Advanced Micro Devices (AMD) have products on the market faster than 1GHz.

  According to Mercandelli, VIA could not have done it without the manufacturing prowess of TSMC. The two companies have become a dynamic duo in the effort to quickly bring new technologies to market this year.

  And while VIA aims to beat Intel and AMD in the market for low cost microprocessors, with the help of TSMC, the firm could become a contender in even bigger markets this year.

  "We're moving very fast thanks to TSMC. They're very aggressive in developing [new manufacturing processes]. At the same time, there is a strong sort of synergy between TSMC and us because our CPU part was actually the first one to be tested [on their equipment]," she said.

  TSMC's new manufacturing process allows transistors to be etched into microchips of only 0.13 microns, over 100 times thinner than a human hair. In general, companies are able to increase microprocessor speed by cramming more transistors on to a single chip.

  TSMC operates under the foundry principle, manufacturing chips based on the designs of their customers. VIA has been able to take advantage of TSMC's technology in order to increase chip speed and quickly get them to market. Located in the Tainan Science-based Industrial Park (台南科學園區), TSMC's newest plant finished testing in December last year with the new line of VIA chips. It uses the 0.13 micron process with slices of silicon the size of a dinner plate, 12 inches -- larger than older technology. More chips can be cut from a 12-inch wafer than the current 8-inch ones, reducing the cost of each microprocessor.

  By contrast, Intel only yesterday announced the completion of testing on its first 12-inch wafer manufacturing plant with 0.13 micron capability.

  The company has been hindered by delays in its manufacturing process, and unlike VIA, has had to make significant investment into costly semiconductor plants. (One chip plant can cost from US$2 billion to US$3 billion to establish.)

  VIA does not own any manufacturing plants as the company focuses entirely on research and development, while TSMC concentrates its efforts on manufacturing chips.

  "We can shift from 0.18 micron to 0.13 micron without making any investment," Mercandelli said.

  VIA announced record net sales of NT$4.027 billion (US$123 million) for March, representing an increase of 56.6 percent over the same period last year
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