However, a complete pull-out by TSMC is unlikely after Chuck Byers, TSMC's Director of Worldwide Brand Management said that, " the truth of the matter is that negotiations are still ongoing with regard to SEMATECH and our involvement in their manufacturing  [ISMI] subsidiary."

ISMI was set up by SEMATECH to assist members of the subsidiary to co-operate on programs focused on manufacturing effectiveness, rather than leading edge processing challenges. ISMI has been successful in attracting a multi-national group of semiconductor companies to join since its formation in November 2003. Member companies are AMD, Freescale, Hewlett-Packard, Infineon, IBM, Intel, Panasonic, Philips, Spansion, Texas Instruments and not forgetting, TSMC!

Byers simply wouldn't be drawn on answering any specific questions concerning TSMC outside R&D programs. Interestingly though he felt the news concerning the largest foundry in the world pulling out of R&D programs at International SEMATECH, isn't a story of worth in the first place!

" It's a non story and I' am clearly not understanding why its getting the attention its getting," commented Byers.

Well, there are few things that come to mind pretty easily in respect to this development. On a general note, the US has become increasingly concerned at maintaining a very strong R&D base within the country as it has seen and is continuing to see more manufacturing jobs move to the Far East. Attracting foreign companies to join in R&D programs is recognition of the USA's research prowess in the semiconductor field.

However, the reverse could also be true! US technology trade press naturally see TSMC's decision to withdraw from International SEMATECH's R&D programs as possible recognition that the US is not doing enough or is somewhat ineffective in going forward with advanced semiconductor processing R&D activities.

On a more detailed point, TSMC has benefited from the recent groundbreaking research done at International SEMATECH in the field of immersion lithography. Indeed it has been TSMC's Burn Lin, head of mask and lithography technology at the foundry, that has been at the forefront of immersion development work and insured that International SEMATECH played a crucial role in the new enabling technology.

What's to say that we have another enabling technology emerge in the next few years and as TSMC is the largest foundry, will ultimately need to be a player by supporting customers who also happen to be International SEMATECH members! 

So, its not too hard to see why there would be a lot of interest in TSMC's decision to pullout of International SEMATECH's R&D arm. The real reasons will probably emerge soon enough, especially if they join other R&D centres such as IMEC on specific technology programs.

As for International SEMATECH, it's not all bad news. They confirmed that they were in negotiations with three or more chip companies to join the consortium as well as companies to potentially join ISMI. News of these should work its way through in the next three months or so, according to International SEMATECH's spokesperson.