Grace Semiconductor Joins ARM Foundry Program; Grace Licenses ARM7TDMI and ARM926EJ Processors

CAMBRIDGE, England and SHANGHAI, China --  May 16, 2006 -- Grace Semiconductor Manufacturing Corporation, a leading foundry in integrated circuit (IC) fabrication, and ARM today announced that Grace has joined the ARM® Foundry Program by licensing the ARM7TDMI® and ARM926EJ(tm) processors, as well as the associated ARM Embedded Trace Macrocell(tm) (ETM9(tm)) on-chip debug peripheral. This license agreement marks Grace's first CPU license from ARM, which will enable the company to facilitate faster time-to-market for system-on-chip (SoC) design and manufacturing.

"Our partnership with ARM will provide new and existing fabless customers with more design options, shortened design cycles and accelerated time-to-market capabilities," said Dr. Arthur Kuo, Executive Vice President of Worldwide Sales & Marketing of Grace. "Through the ARM Foundry Program, we have the tools and support needed to manufacture high-performance, low-power SoC designs for a range of embedded computing applications."

This announcement builds on Grace Semiconductor's agreement last September to license a suite of ARM's Artisan® physical IP including Sage-X(tm) standard cell library, general purpose I/O and memory generators to support their 0.18microm and 0.13 microm process technologies (see: Grace Semiconductor Expands Access to 0.18 and 0.13 Micron Processes with Adoption of ARM Physical IP, 20 Dec)

With this new foundry license, Grace will be able to leverage the ARM7TDMI and ARM926EJ processors, as well as its ETM9 on-chip debug peripheral. Under the terms of the Foundry Program, mutual customers will then be able to quickly integrate and complete SoC designs that include either processor. The ARM7TDMI processor is available now in 0.18microm process and the ARM926EJ processor and ETM9 macrocell will be available in 0.13microm process initially, and they will be available in other nodes in the future.

"Grace's support of the ARM Foundry Program will offer our fabless semiconductor Partners rapid access to a full range of process technologies, enabling them to go to market faster," said Jun Tan, president, ARM China. "Our partnership with Grace further strengthens the proliferation of ARM's technology offerings and will help to support the evolving electronics market in China."

About Grace Semiconductor Manufacturing Corporation

Grace Semiconductor Manufacturing Corporation (Grace) is a pure IC wafer foundry that specializes in integrated circuit (IC) fabrication. Grace's mission is to become a leading foundry in China by supplying high quality and advanced process technology to domestic and global customers.

Grace is located in Zhangjiang Hi-Tech Park in Pudong, Shanghai, with a total land area of 240,000 square meters. Two fabs, based on 12-inch wafer specifications, have been constructed. Currently, Fab 1A (8") is in full production, having already attained a monthly capacity of 27,000 8-inch wafers at the end 2004. More information about Grace is available at www.gsmcthw.com.

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. The ARM Foundry Program now offers the ARM7TDMI processor, the ARM922T(tm) processor, the ARM946E(tm) processor, the ARM1022E(tm) processor and the ARM926EJ processor through the Program.

The Foundry Program offers a flexible partnership model that accelerates the time-to-market for ARM processor-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 a fabless semiconductor companies.

About ARM

ARM designs the technology that lies at the heart of advanced digital products, from mobile, home and enterprise solutions to embedded and emerging applications. ARM's comprehensive product offering includes 16/32-bit RISC microprocessors, data engines, 3D processors, digital libraries, embedded memories, peripherals, software and development tools, as well as analog functions and high-speed connectivity products. Combined with the company's broad Partner community, they provide a total system solution that offers a fast, reliable path to market for leading electronics companies. More information on ARM is available at http://www.arm.com.