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Motorola Expands Outsourcing

Manufacturing agreement with Taiwan Semiconductor Manufacturing Corp. signals next milestone in Motorola's asset-light strategy

June 26, 2002

1 Min Read

AUSTIN, Texas -- To provide customers an assured supply of semiconductor products based on fully compatible process technologies, Motorola Inc. (NYSE: MOT) today announced a broadened agreement with foundry partner Taiwan Semiconductor Manufacturing Corporation (TSMC). The arrangement will increase Motorola's external manufacturing over the next several years. Based on a long foundry-partner relationship, the two companies have significantly enhanced the portfolio of products that TSMC will build for Motorola. This agreement solidifies the company's asset-light strategy for manufacturing utilization. "Motorola's asset-light strategy is aimed at providing customers with embedded solutions based on leadership technologies and world-class manufacturing," said Bill Walker, senior vice president and general manager of Motorola's Semiconductor Products Sector. "While our recently announced partnership with STMicroelectronics, Philips and TSMC is dedicated to breakthrough technology development, this relationship guarantees us additional access to world-class external manufacturing capacity aligned with the jointly developed process technology. TSMC's help in the rapid execution of our asset-light strategy will further enable us to meet our customers' needs." For Motorola, the expanded partnership will result in a significant portion of Motorola's outsourced semiconductor manufacturing being provided by TSMC. The agreement with TSMC enables Motorola to broaden manufacturing capability for a wide range of technologies, featuring leading-edge CMOS technology, which will be crucial to producing Motorola's system-on-chip products for high-end applications. Motorola Inc. Taiwan Semiconductor Manufacturing Company (TSMC)

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