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TSMC, ARM Sign Long-Term Strategic Agreement On Processors

TAIPEI -(Dow Jones)- Taiwan Semiconductor Manufacturing Co. (TSM) and U.K.-based chip design company ARM Holdings PLC (ARM.LN) said Tuesday they signed a long-term strategic agreement that provides TSMC with access to a broad range of ARM processors. Analysts said the move will further strengthen TSMC's dominant position in the foundry market by securing ARM Holdings' patents for its customers such as Nvidia Corp. and Qualcomm Inc. TSMC is the world's largest contract chip maker by revenue. The companies didn't disclose the financial terms of the alliance. ARM Holdings, whose chips are a mainstay in cellphones, provides chip technology for Apple Inc.'s iPad tablet PC. "This new agreement assures the industry that ARM and TSMC will collectively provide IP (intellectual property) development leadership for advanced process technologies well into the future," the companies said in a joint statement. -By Lorraine Luk, Dow Jones Newswires; 8862-25022557; lorraine.luk@dowjones.com

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