Fujitsu Manufactures FPGAs for Lattice

TOKYO -- In a press conference today, Fujitsu Limited (TSE: 6702), a leading provider of customer-focused IT and communications solutions for the global marketplace, and Lattice Semiconductor Corporation (NASDAQ: LSCC), a leading provider of programmable logic devices, announced an agreement under which Fujitsu Limited will manufacture Lattice Semiconductor's next-generation FPGA (field programmable gate array) products on its leading-edge 130-nanometer (nm) and 90nm CMOS process technologies, as well as a 130nm technology with embedded flash memory being jointly developed by Fujitsu and Lattice.

Agreement Overview

Fujitsu has agreed to manufacture next-generation FPGA products (1) for Lattice, a leader in programmable logic devices. Lattice selected Fujitsu to manufacture its next-generation, high-performance products based on Fujitsu's extensive expertise in the development and manufacturing of state-of-the-art process technologies. Lattice is also in discussions with Fujitsu regarding the manufacturing of 65nm technology products.

Fujitsu's semiconductor technology is built on high-performance and high-reliability expertise gained through the development of its own products. In particular, Fujitsu is a pioneer in the use of cutting-edge technologies such as copper wiring and Low-k2 for its high-end servers.

Fujitsu already manufactures products using 90nm CMOS technology at its Akiruno Technology Center, located in western Tokyo. Fujitsu offers total manufacturing solutions, from process technology to testing and packaging, and provides customers such as Lattice advanced technology, high reliability, and integrated solutions capabilities.

Lattice Plans Investment In New 300mm Fab

Lattice plans to invest in a new 300mm wafer fab which Fujitsu has scheduled for operation in spring 2005, and which will enable a long-term, stable, 300mm advanced technology wafer supply for Lattice. In conjunction with construction of the new fab, Fujitsu will strengthen and expand its leading-edge semiconductor foundry business with various strategic customers, including Lattice.

Partnership Is Synergistic, Interactive

Toshihiko Ono, Group President of Fujitsu's Electronic Devices Business Group, said that FPGAs are among the fastest growing semiconductor products and ideal for Fujitsu's foundry services. Ono said, "This agreement represents an excellent opportunity for Fujitsu to expand its foundry services. Fujitsu and Lattice have enjoyed a mutually rewarding and trusting relationship for several years. Lattice was seeking a foundry partner with strong expertise in advanced sub-micron processes and embedded Flash technology, and Fujitsu was seeking an opportunity to fabricate mainstream, high-volume, next-generation FPGAs. In retrospect, our partnership seemed almost inevitable."

Lattice CEO and Chairman Cyrus Tsui noted that Fujitsu has proven to be an exceptional partner. "Fujitsu is providing us with process technologies that have not been generally available in the open foundry market," Tsui said. "Fujitsu's production-proven technology and capacity will be very important as Lattice becomes the programmable logic company that drives new standards in FPGA products. It is essential that Lattice FPGAs take advantage of the most advanced technologies, and Fujitsu has demonstrated its commitment and capability to continually expand the boundaries of what is technologically possible," Tsui concluded.

Three New FPGA Product Families, Optimized For Performance, Non-Volatility And Low-Cost, Are Based Upon Fujitsu Process Technologies

The initial result of the partnership agreement between Fujitsu and Lattice will be the planned introduction throughout 2004 of three distinctly focused FPGA product families. Lattice identified its highest density products as the LatticeSC(TM) family of ultra high-performance, 90nm CMOS FPGAs. This family will incorporate an efficient programmable fabric supporting devices with over 10 million system gates and 10 million bits of embedded RAM, as well as optimized, embedded system functions. The LatticeXP(TM) family, on the other hand, is a family of non-volatile, infinitely reconfigurable 130nm FPGAs incorporating embedded Flash for "instant-on" operation. Finally, the LatticeEC(TM) family provides a range of ultra low-cost FPGAs based on Fujitsu's production-proven, Low-k, copper metallization 130nm process.

Volume Production, Including 90nm, To Begin Autumn 2004

Lattice CEO Tsui said the first family of this new generation of products would be introduced in mid-2004, with introduction of the remaining families expected by year-end. Volume shipments will begin by the end of 2004. "These new product families anticipate customer requirements for FPGAs over the next three to five years," said Tsui, "and are targeted to the FPGA market segments that we believe will grow most rapidly." Tsui added that the new product families address market segments first pioneered by earlier Lattice devices, such as the company's revolutionary field programmable system chip (FPSC[TM]) devices, the industry's first FPGAs with embedded 3 Gigabit/sec SERDES technology; and the company's "instant-on" ispXPGA(TM) FPGA families. "Lattice established a viable market for FPGAs with embedded system functions as well as non-volatile and infinitely reconfigurable FPGAs," Tsui said. "Now, with these new products, Lattice is poised to dramatically expand that market." Tsui also noted that the LatticeEC product family is a "precise and targeted response" to the market's exploding demand for low-cost, architecturally streamlined FPGAs.

Fujitsu Ltd.

Lattice Communications LLC