TSMC and Infineon extend technology partnership

TAIPEI, Nov 5 (Reuters) - Top contract chipmaker TSMC (2330.TW) and Germany's Infineon (IFXGn.DE) have expanded the scope of their cooperation to jointly develop advanced process technologies for cars and other security applications.

The two companies agreed to extend their technology and production partership, matching Infineon's strategy to outsource manufacturing and engage in technology co-development for 65 nanometer and smaller process technology. TSMC (TSM.N) has been driving process technology to advanced 65-, 45- and 40-nanometre as next-generation electronic devices, such as cellphones and game consoles, require more powerful processors.

"Infineon is an acknowledged leader in a number of technology and application segments," C.C. Wei, a TSMC vice-president, said in a statement. "They have a world-class reputation in embedded flash development and have earned the respect of the automotive and chip card industry for their product quality and innovation."

The smaller circuitry allows the design of more powerful chips for more complex devices, and squeezing more circuits onto a single chip increases chip yield per wafer, boosting efficiency.

In Taipei, TSMC shares ended up 0.17 percent on Thursday, against the main TAIEX's 0.66 percent fall. (US$1=T$32.5) (Reporting by Baker Li, Editing by Chris Lewis)