Xilinx, UMC Present Next-Generation Virtex Plans

9/17/2003 - Xilinx, Inc. (NASDAQ: XLNX) and UMC (NYSE:UMC) executives met with reporters to mark key process technology leadership milestones at 90nm, 130nm and 300mm, and to disclose plans for the next-generation Xilinx Virtex product line.

As the first and only FPGA vendor shipping 90nm FPGAs, Xilinx has established more than a one-year manufacturing technology lead in the PLD market. By moving down the process technology curve first, the company has enabled customers to realize the cost-density benefits of the 90nm node now. According to public statements issued today, Xilinx's nearest competitor will not ship 90nm products until mid-2004, giving Xilinx a formidable lead in 90nm and 300mm technology and maintaining its position as the world leader in low cost solutions.

"Getting first to market with 90nm products early in the introduction stage has it challenges, however, this will yield significant market advantages for Xilinx," said Jim Feldhan, president, Semico Research Corporation. "Xilinx's early adoption and delivery of 90nm will allow it to provide superior performance and achieve the lowest cost solution first, clearly providing a distinct advantage to Xilinx's customers."

With five times more design-win opportunities, the Spartan-3 family has been more rapidly embraced by customers than any previous Xilinx product family at this point in its lifecycle. Priced at least 20 percent less than competing low-cost PLDs, Spartan-3 FPGAs also deliver unprecedented density and feature-rich capabilities over competing products to allow customers to target higher volume, price sensitive applications. With over 11,000 customers, the Xilinx Spartan Series is the world's most successful low-cost FPGA family in its class. Since the introduction of the Spartan Series in 1998, the company has shipped more than 60 million devices.

"Xilinx leveraged both 90nm process and staggered I/O technology to produce the world's lowest cost FPGA ever - the Spartan-3 family - with features and density still unmatched in its class," said Babak Hedayati, senior director of Product Solutions Marketing and Partnerships at Xilinx. "Xilinx is the only FPGA vendor to ship products on 130nm and 300mm technologies in full-volume production, delivering unprecedented performance, price, density, capacity and system-level capabilities such as embedded PowerPCs and 3.125 serial transceivers with the Virtex-II Pro Series. Our next-generation Virtex family will represent a quantum leap for the PLD industry and will address customer requirements for their next generation systems."

With over a billion transistors in a single device, the next generation Virtex family will deliver more than 2X the system capacity and 2X the performance of existing Virtex devices at unprecedented low cost for these class of devices. Today Xilinx also announced that it is shipping the world's highest capacity FPGA with 430 million transistors - the Virtex-II Pro XC2VP100 Platform FPGA. The XC2VP100 represents the ninth member of theVirtex-II Pro family shipped. With over 10,000 worldwide customer engagements, the Virtex-II Pro family is the highest performance FPGA with the lowest system costs available in the market place today. Xilinx customers can also take advantage of EasyPath - a unique cost reduction path utilizing ASIC-style testing for a fixed function to lower the cost of Virtex-II Pro FPGAs. EasyPath offers guaranteed 25 percent lower cost with potential of offering up to 80 percent savings to Xilinx customers.

Manufacturing Partnership Strategy Pays Off
Xilinx has a long history of successful semiconductor manufacturing partnerships - a cornerstone of the company's business strategy and PLD market leadership. For nearly a decade, Xilinx has collaborated with UMC as its primary manufacturing partner for high-volume production of the Xilinx programmable chips. Over the past several years, UMC and Xilinx have aligned to target a number of programmable devices to UMC's deep submicron processes.

In March 2002, Xilinx commenced a manufacturing collaboration with IBM, marking the first time IBM manufactured parts for a foundry customer in volume using its most advanced processes, which are normally used in high-end microprocessors, custom chips and memory products. A collaborative design effort between the two companies resulted in the integration of IBM's PowerPC microprocessor with Xilinx field programmable gate array (FPGA) technology to form a new type of hybrid chip family, the Virtex-II Pro, for use in communications, storage, and consumer applications. In June 2002, the companies announced a second technology agreement under which IBM is licensing FPGA technology from Xilinx for integration into IBM's Cu-08 application-specific integrated circuit (ASIC) product offering.

About Xilinx
Xilinx is the worldwide leader in complete programmable logic solutions. For more information, visit www.xilinx.com.

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