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Texas Instruments Inc. here Monday (May 7) disclosed its new foundry
strategy, indicating that TSMC, UMC and a yet-to-be-determined vendor
will split the U.S. company's 45-nm business.
As part of the disclosure, Taiwan's United Microelectronics Corp. (UMC)
appears to have scored a major victory, as that company will make Sparc
processors on a foundry basis at the 45-nm node for Sun Microsystems
Inc., according to an executive from TI (Dallas). Previously, TI had
been exclusively making Sparc chips on a foundry basis for Sun.
Texas Instruments Inc. here Monday (May 7) disclosed its new foundry
strategy, indicating that TSMC, UMC and a yet-to-be-determined vendor
will split the U.S. company's 45-nm business.
As part of the disclosure, Taiwan's United Microelectronics Corp. (UMC)
appears to have scored a major victory, as that company will make Sparc
processors on a foundry basis at the 45-nm node for Sun Microsystems
Inc., according to an executive from TI (Dallas). Previously, TI had
been exclusively making Sparc chips on a foundry basis for Sun.
UMC's rival, Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC), also
won some significant 45-nm, DSP foundry business at TI. It's unclear if
TI's other foundry partner--Chartered Semiconductor Manufacturing Pte.
Ltd.--won any 45-nm business.
Overall, TI makes chips within its own logic fabs, but the company also
outsources half of its production to third-party foundry providers in
an effort to reduce its production costs, said Kevin Ritchie, senior
vice president of TI's Technology and Manufacturing Group, in an
interview here.
Basically, there are three facets to TI's complex foundry strategy:
wireless, DSP and Sparc processors. First, at the current 65-nm node,
TI has three foundry partners for use in making its wireless chips: Chartered, TSMC and UMC.
Second, within its own logic fabs, TI develops processes and makes its
own 65-nm high-performance digital signal processors (DSPs). And
finally, TI also makes Sparc microprocessors on a foundry basis for Sun
Microsystems.
Going forward, TI will continue to make chips within its own logic fabs
at the 45-nm node. It will continue to utilize foundries.
But in a switch
in its strategy at 45-nm, UMC will also make Sparc processors on a
foundry basis for Sun, according to Ritchie. ''For the first iteration,
it will be UMC,'' he said. Sun has not disclosed its manufacturing
plans, however.
For the high-performance DSP business at 45-nm, TI will develop this
process with TSMC, he said. TI, along with TSMC, are expected to
manufacturer these products.
For wireless chips at 45-nm, TI will continue to use UMC and TSMC, he
said. TI plans to name a third foundry partner for wireless devices at
45-nm, but that partner has yet to be determined. Much of that decision
depends on a partner with aggressive or ''disruptive pricing,'' he
said.
In January, TI said that it will continue to make chips within its own logic and analog
fabs. But the company has decided to drop the costly business of
digital logic process development and rely on foundry partners for its
processes.
TI said it will complete the development of its own, 45-nm logic
process. Then, it has decided to stop internal development at the 45-nm
node and use foundry supplied processes at 32-, 22-nm and thereafter.
Read the original article: http://www.eetimes.com/news/latest/showArticle.jhtml?articleID=199300152
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