Ericsson Microelectronics and Chartered Semiconductor to Co-Develop Technologies for Wireless Communications - Company Business and Marketing

Cambridge Telcom Report, Dec 13, 1999

Ericsson Microelectronics and Chartered Semiconductor Manufacturing have announced that they will extend their manufacturing relationship by co-developing two deep-submicron technologies -- radio-frequency (RF) CMOS and BiCMOS -- to support the broad range of wireless communications products, including Bluetooth applications.

Each technology offers systems designers distinct benefits: RF CMOS provides a solution for cost-sensitive applications, while BiCMOS offers total integration of high performance microelectronics for wireless systems.

Both the RF CMOS and the BiCMOS technologies developed will be based on and integrated into Chartered's advanced baseline CMOS manufacturing process. Ericsson and Chartered will jointly develop the RF CMOS processes in Chartered's facilities in Singapore and the BiCMOS processes at Ericsson's facilities in Sweden. Chartered will be the primary volume manufacturing source for Ericsson products requiring the resulting technologies. The technologies will also be made available to other Chartered customers.

Volume production for RF CMOS process technologies is expected in the first quarter of 2001, with BiCMOS production available in the third quarter of 2001.

"Our focus is to innovate, develop technologies, and design products for wireless applications. Bluetooth is one important example. To do this we benefit from cooperation with world-class manufacturing and process experts like Chartered. Now, as a result of this relationship, our customer can thus also rely on multiple and well proven high-volume sourcing," said Bo Andersson, president of Ericsson Microelectronics.

"This agreement reaffirms our business model of building long-term relationships that go beyond typical outsourcing arrangements," said Barry Waite, president and CEO of Chartered. "Working with Ericsson merges their expertise in the design of novel wireless systems and technologies with our own expertise in providing leading-edge communications-centric manufacturing technologies. Through collaboration with industry innovators like Ericsson, we can also provide all of our customers access to advanced systems-level technologies and services."

Financial terms of the agreement were not disclosed. Bluetooth and Wireless Communications Applications RF and system ICs for radio base station and mobile phones are the target areas for the further development and fast expansion of Ericsson Microelectronics. The Bluetooth concept is a new area with a high growth rate expected. Ericsson Microelectronics has been the first to demonstrate the concept and complete working products.

Ericsson Microelectronics is a supplier of world-class microelectronic components to manufacturers of telecom and datacom systems and mobile phones. The division's product range comprises microelectronic components for wireless applications, broadband communications, and fixed access as well as for communication via optical fiber. Ericsson Microelectronics, with its global design, development, manufacturing and sales network, is a leading supplier of products to meet the increasing need of speed, bandwidth and mobility in the new telecoms world.

Ericsson is the leading provider in the new telecoms world, with communications solutions that combine telecom and datacom technologies with the freedom of mobility for the user. With more than 100,000 employees in 140 countries, Ericsson simplifies communications for tis customers -- network operators, service providers, enterprises and consumers. FMI: http://www.ericsson.se.

Chartered Semiconductor Manufacturing is one of the world's leading independent foundries providing wafer fabrication services. Guided by the tenets of trust, service, partnership, advanced technology and stability, the company aims to provide world-class semiconductor foundry services that enable customers to create and deliver market-leading system-level solutions. Chartered operates five fabrication facilities that serve high-growth, technologically advanced applications such as communications and networking. Headquartered in Singapore, Chartered employs approximately 3,300 people at its 12 locations in North America, Asia and Europe.

Chartered completed its global initial public offering in October 1999 and is traded in the United States on Nasdaq and in Singapore on the Stock Exchange of Singapore (SES). The company reported 1998 revenues of US $422.6 million. FMI: www.charteredsemi.com.