AppliedMicro-TSMC Collaboration Brings Power Architecture Microprocessors to TSMC Technology Platforms

Joint Effort Produces World`s Highest Performance Power Architecture Processor
Manufactured in Low-Cost Bulk CMOS Technology
SUNNYVALE, Calif.--(Business Wire)--
Applied Micro Circuits Corporation, or AppliedMicro (NASDAQ:AMCC), a global
leader in energy conscious computing and communications solutions, and Taiwan
Semiconductor Manufacturing Company (NYSE:TSMC) today announced a collaboration
enabling AppliedMicro`s Power Architecture microprocessors to be manufactured on
TSMC`s industry-leading technology platform first at 90nm then moving to 65nm
and 40nm soon after.

The agreement signals the first time that AppliedMicro`s embedded
microprocessors are available beyond complex and costly Silicon-on-Insulator
(SOI) fabrication processes. The first product of this collaboration, the
AppliedMicro APM 83290 processor, operates at 1.5GHz which represents the
highest performance for a Power Architecture processor manufactured on bulk CMOS
technology, thus highlighting the benefits of successful technology partnership
with TSMC.

"The collaboration with TSMC marks an entirely new milestone for Power
Architecture processing as it enables us to reach many low-cost application
areas that were impractical for processors built in SOI technology," said Robert
Fanfelle, Associate Vice President of Strategic Marketing for AppliedMicro.
"TSMC`s 90nm CMOS technology is stable and mature and it offers an unbeatable
combination of performance and price flexibility for a new generation of
embedded computing applications."

"TSMC values the collaboration with AppliedMicro because by pooling our
strengths it signals a new wave of innovation for both companies," said Pan-Wei
Lai, Vice President of Business Development at TSMC North America. "Power
Architecture technology is highly versatile and adaptable for a wide variety of
embedded applications and AppliedMicro`s plans for new processor designs promise
to extend the relationship between our two companies as we explore ways to bring
about improvements on TSMC`s advanced technology platforms."

AppliedMicro Power Architecture processor families have forged market leadership
positions in wireless access points, cellular base stations and multifunction
printers. Moreover, the company`s expertise in communications technology and
advanced peripheral development around Power Architecture cores continues to
capture market share from major networking, storage and consumer OEMs.
Prospective system designers can leverage an extensive ecosystem of
industry-leading partners encompassing operating systems, development tools,
software platforms, board-level products, and design services allowing rapid
time to market product release.

"Our company`s collaboration with TSMC heralds a new era in Power Architecture
computing as it becomes more accessible for systems designers that want an
excellent balance of high performance and low power consumption for today`s
energy-conscious system designs," AppliedMicro`s Fanfelle said. "Our processor
andsystem-on-a-chip expertise combined with TSMC`s experience and technology
provide a powerful launching point for Power Architecture based solutions as we
enable new classes of products and systems."

The announcement kicks off a long-term strategic relationship between
AppliedMicro and TSMC designed to widen the availability of Power Architecture
embedded processing across TSMC`s competitive bulk technology platform. The move
extends AppliedMicro`s energy efficient product emphasis leadership by
leveraging the benefits of TSMC`s high-performance, low-power processes.

AppliedMicro Overview

AppliedMicro is a global leader in energy efficient sustainable solutions to
process, transport, and store information for the next generation of Internet
data center and carrier central office. A leader in high speed signal
processing, IP and Ethernet packet processing, and embedded processors,
AppliedMicro's patented innovations provide high value solutions in telecom,
enterprise and consumer applications. AppliedMicro's corporate headquarters are
located in Sunnyvale, California. Sales and engineering offices are located
throughout the world. For further information regarding AppliedMicro, visit the
company`s Web site at http://www.appliedmicro.com.

About TSMC

TSMC is the world`s largest dedicated semiconductor foundry, providing the
industry`s leading process technology, and the foundry`s largest portfolio of
process-proven libraries, IP, design tools and reference flows. The Company`s
total managed capacity in 2008 exceeded 9-million (8-inch equivalent) wafers,
including capacity from two advanced 12-inch -GigaFabs four eight-inch fabs, one
six-inch fab, as well as TSMC`s wholly owned subsidiaries, WaferTech and TSMC
(China) and its joint venture fab, SSMC. TSMC is the first foundry to provide
40nm production capabilities. Its corporate headquarters are in Hsinchu, Taiwan.
For more information about TSMC, please visit, www.tsmc.com.

AppliedMicro and the AppliedMicro logo are trademarks of Applied Micro Circuits
Corporation. Power Architecture is a trademark licensed by Power.org. The
PowerPC name and logo are registered trademarks of IBM Corporation and used
under license. All other trademarks mentioned herein are the intellectual
property of their respective owners.

AppliedMicro
Tally Kaplan Porat, 408-702-3139
Cell: 408-483-8370
tkaplan@amcc.com
or
The Bernard Group
Tom Murphy, 831-661-0260 (Media)
Cell: 831-402-4142
tmurphy@bernardgroup.com
or
TSMC
Michael Kramer, 886-3-5636688 ext. 7126216
Corporate Public Relations
pdkramer@tsmc.com
or
TSMC North America
Wendy Matthews, 408-382-8030
wmatthews@tsmc.com

Copyright Business Wire 2009