Sun Microsystems Wednesday named Taiwan Semiconductor Manufacturing Co (TSMC) as its foundry partner for a deal expected to generate 500 million dollars a year for the Taiwan chipmaker.
TSMC, the world's leading contract microchip maker,
will manufacture processors based on 45-nanometer
geometry as well as future generations for Sun, the
"TSMC is already fully engaged with engineers from
both Sun and TI (Texas Instruments) as we make this
transition as seamless and as fast as possible," Sun
vice president Sridhar Vajapey said in a statement.
Industry watchers said TSMC had scored a significant
victory over rivals IBM and United
Microelectronics Corp with the deal.
The Sun business is expected to provide TSMC with an
annual 500 million US dollar revenue stream and a new
customer accounting for 5.0 percent of revenue.
Sun Micro's choice validates TSMC's move into the
bulk-process microprocessor segment, an area where
AMD is also making inroads, it