Microsoft and TSMC have reached an agreement for TSMC to provide
semiconductor manufacturing services for Microsoft’s future Xbox products. The
breakthrough agreement expands an ongoing relationship between the two companies
by providing Microsoft with direct, collaborative access to TSMC’s advanced
semiconductor process technologies. "TSMC has consistently demonstrated industry
leadership in the development and deployment of highly advanced semiconductor
process technologies for high-volume manufacturing," said Todd Holmdahl, Xbox
General Manager of Microsoft Corporation. "It was this solid record of
achievement that led us to work directly with TSMC on semiconductors targeted to
our future game consoles products."

Microsoft and TSMC have reached an agreement for TSMC to provide
semiconductor manufacturing services for Microsoft’s future Xbox products. The
breakthrough agreement expands an ongoing relationship between the two companies
by providing Microsoft with direct, collaborative access to TSMC’s advanced
semiconductor process technologies.

"TSMC has consistently demonstrated industry leadership in the development and
deployment of highly advanced semiconductor process technologies for high-volume
manufacturing," said Todd Holmdahl, Xbox General Manager of Microsoft
Corporation. "It was this solid record of achievement that led us to work
directly with TSMC on semiconductors targeted to our future game consoles
products."

Founded in 1987, TSMC is the largest semiconductor foundry in the world,
specializing in manufacturing semiconductors for its customers in a wide variety
of end markets. Its foundry services also include a broad range of
silicon-proven intellectual property cores and tight integration with leading
electronic design automation (EDA) design tools that allow chip designers to
achieve faster time-to-volume.

"Microsoft’s future Xbox products and services will require leading-edge
semiconductor technologies," said Dr. Rick Tsai, president of TSMC. "This
agreement underscores the importance of a partnership between the two companies
to identify the best technology platforms for Microsoft’s future products. We
look forward to a long and productive collaboration with Microsoft."