GOVERNMENT

SANTA CLARA, CA -- Matrix Semiconductor and Taiwan Semiconductor Manufacturing Company (TSMC) today announced that TSMC is manufacturing the world's first commercial three-dimensional semiconductor product -- Matrix(TM) 3-D Memory -- on behalf of Matrix, the innovator behind the technology. Both companies have announced this business relationship on the same day that Matrix Semiconductor has disclosed highlights of its business strategy, breakthrough technology, management team and vision. (See today's other news releases from Matrix Semiconductor for more information.) TSMC has been producing Matrix 3-D Memory throughout the latter half of 2001, building this innovative three-dimensional semiconductor product using conventional materials and methods at its world-class manufacturing facilities. By building semiconductors in three-dimensions and dramatically increasing the memory density of each chip, Matrix Semiconductor's technology allows more bits per chip to be fabricated. This increased density decreases overall manufacturing costs by as much as an order of magnitude compared to conventional non-volatile memory technologies such as flash memory. By co-developing a manufacturing process that is tested, stable, and mature, Matrix Semiconductor and TSMC are poised to scale dramatically both the yields and the per-chip densities of Matrix 3-D Memory. Matrix 3-D Memory will be the first non-volatile semiconductor memory delivered at a low enough cost for it to be used like traditional camera film or audio tape. Matrix 3-D Memory is an archival memory designed to store information securely for many decades. Memory cards based on Matrix 3-D Memory will be write-once, available in standard flash card form factors, interchangeable with existing flash cards, and compatible with existing memory standards. "As Matrix Semiconductor's strategic foundry partner, TSMC is intimately involved with the 3-D technology. We are working closely with Matrix to continue in both advanced development and volume production," said Genda Hu, Vice President of Marketing at TSMC. "By building semiconductors in three dimensions, Matrix can deliver much denser non-volatile semiconductor memory products. TSMC provides the technology and manufacturing capability necessary to make them available in volume." "Our strategic partnership with TSMC underscores and validates Matrix Semiconductor's vision: commercialize an innovative technology by building a compelling product and taking that product to market in high volume," said Dennis Segers, President and CEO of Matrix Semiconductor. "Early on, Matrix determined that allying with world-leading partners would be a key ingredient to the company's success. On the manufacturing side, Matrix sought a partner with premier technology and resources, engineering acumen, and the capacity to handle the anticipated demands for Matrix's product," said Siva Sivaram, Chief Operating Officer of Matrix Semiconductor. "TSMC has proven a perfect partner to work with to bring the world's first semiconductor consumable to market."