Fujitsu to outsource 28nm chip production

The two companies have announced that initial shipments of the 28nm chips will begin around the end of 2010, as a response to keep up with user demands for small mobile devices with multiple capabilities. The deal with the Japanese chip maker extends the work between the two companies. Fujitsu previously tapped TSMC for 40nm chip production and already has several chip designs in progress at the 40nm level. Chip makers such as TSMC and Intel currently mass produce chips using 40nm to 45nm technology. The agreement also helps TSMC by validating its new 28nm production process with a customer win. Early agreements also constitute an important part of research and technology development because companies such as Fujitsu usually work with TSMC and pay more to help cover R&D expenses because they want to take advantage of the new chip manufacturing technology as quickly as possible. Part of their agreement stipulates Fujitsu will jointly develop an optimised 28nm high performance process technology with TSMC. The two companies are also discussing possible further collaboration on advanced chip packaging including high performance lead free packaging.