Lucent and Chartered in 5-year development deal

$700 million to spend on future of integrated circuits

Lucent and Chartered Semiconductor Manufacturing have signed a five-year, $700 million investment deal to develop future generations of integrated circuits for the communications industry.

As part of the deal, the companies will staff a new R&D facility in Singapore. This site will work with Bell Labs teams in Florida and Chartered's own development sector, creating a 600 person strong R&D team to work on the new technology.

The companies will be working on combining functions to create more integrated circuits or systems-on-a-chip that will shrink communications products so that no one will ever be able to find their mobile phone.

The new chips will be destined for use in broadband and mobile Internet infrastructure and for information appliances like PDAs with full motion video capability.

The agreement will look specifically at developing complementary metal oxide semiconductor (CMOS) digital logic, mixed-signal and embedded static random access memory (SRAM) process technologies at the 0.13, 0.10, and 0.08-micron technology nodes. They will also be looking at the feasibility of setting up a fab that could use 12-inch wafers. ®