Starting from the first quarter of next year, Xilinx, a major US-based programmable-logic device (PLD) maker, will begin producing some of its 90nm-based field-programmable gate arrays (FPGAs) at a Toshiba 12-inch fab located in Kyushu Prefecture, Japan. Shortly after announcing a new foundry agreement with Toshiba yesterday, Wim Roelandts, president and CEO of Xilinx, talked to DigiTimes by telephone. Roelandts explained that the announcement reflects the company’s strategy of using multiple foundry sources, even for advanced processes. United Microelectronics Corporation (UMC) will remain Xilinx’s main foundry partner, with IBM Microelectronics and Toshiba also supporting production at 0.13-micron and 90nm, respectively.
Q: Why did Xilinx choose Toshiba as its new foundry partner?
A: Toshiba will initially produce FPGAs for Xilinx using 90nm process technology now and a 65nm process in the future. Xilinx always pursues a multiple foundry strategy, and Toshiba has the advanced technology we need to produce chips. The new agreement with Toshiba will not affect our relationship with UMC. UMC knew about this before we announced it.
Gartner Dataquest has forecast the PLD market will grow at a 20% compound annual growth rate (CAGR) between 2003-2008 and reach US$600 million in 2008. We will continue increasing production at UMC, but we will also need another foundry to meet our demand for capacity.
Q: Xilinx has also produced chips at IBM Microelectronics. Why did the relationship for 90nm production end?
A: It is unfortunate that Xilinx’s relationship with IBM came to an end with 90nm production. The problem was that IBM’s low-k dielectric film was still too soft for Xilinx.
In contrast, UMC offers both fluorinated silicate glass (FSG) and low-k dielectrics, and both types of material work nicely for Xilinx’s 90nm FPGAs. Toshiba’s black diamond (BD) low-k film also works fine. Consequently, Xilinx decided to add Toshiba as a second source for production at 90nm and more advanced processes.
Q: How will Xilinx allocate orders for UMC and Toshiba?
A: At this stage, I cannot disclose how Xilinx will allocate orders for UMC and Toshiba because it involves issues such as pricing, yield and available capacity.
Toshiba will begin producing FPGAs for Xilinx starting from next quarter. Currently, we produce 70% of our chips at UMC, with the remainder shared by multiple foundry firms. We will continue producing older-generation chips with our current foundry partners. However, starting with the 90nm node, we will only produce at UMC and Toshiba fabs.
Q: Problems with dielectric materials may delay the development of 65nm processes. What is your view on this?
A: I do not anticipate any delay for 65nm technology entering mass production since many chipmakers are now using second-generation dielectric films, which are much harder than older-generation ones. Xilinx plans to introduce 65nm PLDs around the end of 2005.
Willem "Wim" Roelandts, president and CEO.
Source: Xilinx, October 2004
Article translated by Jack Lu and edited by Michael McManus
