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ARM Foundry Program Expands Into China With SMIC

30 July 2003

Agreement will enable ARM to offer advanced manufacturing facilities for its popular  core in China

CAMBRIDGE, UK – July 30, 2003 –ARM [(LSE:ARM); (Nasdaq:ARMHY)], the industry's leading provider of 16/32-bit embedded RISC processor solutions, today announced that Semiconductor Manufacturing International Corporation (SMIC), China's most advanced pure-play semiconductor foundry, has joined the ARM® Foundry Program and has licensed the ARM7TDMI® microprocessor core. The agreement follows the collaboration between ARM and SMIC to develop an ARM7TDMI core-based test chip that has been successfully validated in silicon.

Shanghai-based SMIC is the first foundry in mainland China to join the ARM Foundry Program, and is an important addition to the manufacturing support available to ARM Partners in the region. SMIC will offer fabless semiconductor companies and design houses access to ARM technology in a cost-effective and flexible manner.

"We are developing our Foundry Program with SMIC and this announcement is an important step in our relationship with SMIC. It significantly strengthens our support for customers in China who now have access to SMIC's world-class manufacturing expertise for their ARM core-based designs," said Jun Tan, president, ARM China. "We continue to see a great deal of innovation within the Chinese semiconductor market and increasing business opportunities for ARM, and look forward to extending our relationship with SMIC even further."

"In today's competitive market, many of our customers are looking for faster time-to-market and greater flexibility for the design and manufacture of their products," said James Sung, vice president of marketing & sales, SMIC. "Joining the ARM Foundry Program enables us to meet these needs by offering industry-leading, ARM low-power 32-bit microprocessor cores alongside our advanced manufacturing capabilities."

The agreement with SMIC demonstrates ARM's sustained commitment to the Chinese market. In July 2002 ARM opened its offices in Shanghai. The company has announced seven Partners in the region including two tools distributors, Impact and Watertek; three IC design Partners, ICC, SHHIC, and ZTEIC, who have licensed ARM technology; and one Approved Training Center Partner, Watertek. ARM also recently announced that Southeast University in Nanjing had joined the ARM University Program.

SMIC joins existing ARM Foundry Partners, AMI, Anam, Chartered Semiconductor Manufacturing, Silterra, Tower Semiconductor, TSMC, and UMC, as members in the Program, bringing the total number of Foundry Program members to eight.

Availability
ARM7TDMI core-based Design Kits, targeted to the SMIC process technology, are available to license from ARM immediately. Silicon-verified cores are available from SMIC from Q3 2003.

About the ARM Foundry Program
The ARM Foundry Program is an innovative business model that enables fabless semiconductor companies in emerging markets to gain access to ARM processor technology for use in the design and manufacture of advanced system-on-chip (SoC) solutions. There are currently 58 Partners in the Foundry Program, which was launched in 2000. ARM now offers the  core, the ™ core, the ™ core and the ™ core through the Program.

The Foundry Program offers a flexible partnership model that accelerates the time-to-market for ARM core-based designs and enables OEMs, which do not have access to fabrication facilities, to work directly with an approved ARM semiconductor foundry. Unlike a traditional ARM license, where a licensee gains both manufacturing and design rights, the ARM Foundry Program builds a three-way Partnership between ARM, an approved silicon foundry, and an OEM.

About ARM
ARM is the industry's leading provider of 16/32-bit embedded RISC microprocessor solutions. The company licenses its high-performance, low-cost, power-efficient RISC processors, peripherals, and system-chip designs to leading international electronics companies. ARM also provides comprehensive support required in developing a complete system. ARM's microprocessor cores are rapidly becoming a volume RISC standard in markets such as portable communications, hand-held computing, multimedia digital consumer and embedded solutions.

About SMIC
SMIC is the first pure-play advanced IC foundry in China to achieve volume production of 8-inch wafers at 0.18um and finer technologies. Established in April 2000, SMIC is a Cayman Islands company with three 8-inch fabs in volume production in Shanghai. In May 2003, Semiconductor International Journal, a leading publication in the semiconductor industry, awarded SMIC's Fab 1 for its excellence with the prestigious Top Fab of the Year 2003 award.

More than a top chip foundry, SMIC provides customers with a full range of services that includes design services, mask manufacturing, wafer fabrication ranged from 0.35um to 0.18um and 0.13um copper backend line services, as well as testing capabilities. In addition, customers also have access to the innovative genius of the in-house R&D team staffed by leading industry experts. As part of its dedication towards providing high-quality services and protecting the environment, the foundry's three fabs in Shanghai have achieved ISO9001 and ISO14001 certification.

SMIC's state of the art 300mm facility in Beijing is currently under construction. For more information, please visit www.smics.com