TSMC's first announced partner is Virage Logic Inc., which already supplies memory compilers for embedded memory to TSMC, but also develops foundry-neutral standard and I/O cells.

TSMC's move would seem to bring the world's leading foundry into competition with a number of intellectual property companies that develop libraries for foundry processes, including Artisan Components Inc. and Virtual Silicon Technology. The deal seems to have been struck with Virage because of a complementary nature to the companies' main offerings. Although Virage does offer standard cell libraries and it is better known as a provider of embedded memory. Similarly TSMC is not offering memory compiler technology, only standard cells and I/O cells.

TSMC's standard cell and I/O libraries are available now from Virage Logic at no cost to the user. Standard charges apply for Virage Logic's embedded memories and logic IP. Support charges will apply to all the products.

TSMC claims its internally developed libraries, such as the Nexsys 90-nm libraries, include advanced features that heighten the suitability for SoC design, such as dual-threshold power tuning that enables designers to integrate high-speed and low-leakage functionality on the same chip at the same time.

The deal with Virage covers TSMC libraries for 150-nm, 130-nm and 90-nm process technology for which Virage will now act as an agent. This will give customers a one-stop shop, but is also a way in which TSMC can start to lock smaller customers into its process technologies.

One of the conditions associated with use of the TSMC libraries is that designs made using the cells should not be taken to other foundries. At the same time TSMC is also exporting support issues. TSMC expects the support issues will be handled by Virage and the other companies being signed up to distribute the libraries.

"TSMC has had internally developed libraries for SoC design for some time. We used them for test and internal design. But adopting a pro-active distribution strategy is new," said John Yue, vice president of technology.

TSMC's standard cell and I/O libraries are available now from Virage Logic at no cost to the user. Standard charges apply for Virage Logic's embedded memories and logic IP. Support charges apply to all products.

When asked why Virage, which offers standard cell and I/O libraries of its own, also targeted at TSMC process technologies, was taking on what seemed to be a competing line of licensable libraries, Adam Kablanian, chief executive officer and president of Virage Logic, said: "We are not abandoning our own standard cells. But the incentive is the same for us whether we distribute TSMC libaries or Virage's libraries. No single company can do it alone."

The point was made that different libraries may be optimized for different aspects of power consumption, performance, or die area. "Virage has little presence in standard cell and we are incentivized to support them TSMC and its an opportunity to sell more memories," said Kablanian.

TSMC's Yue said that the TSMC libaries are highly optimized for TSMC processes, which is becoming more significant as manufacturing challenges multiply at 130-nm and 90-nm design rules, but that TSMC was also supportive of third-party library vendors. "Our business model is based on the selling of silicon. We like to see more choices for our customers, so we are putting our libraries out there."

But one key distinction for a customer of Virage could be that if they want to maintain the option of multiple foundries to build their SOC they would work with Virage-written libraries, while if they are happy to target TSMC only, and for example get early access to 90-nm process technology they would go with the mix of TSMC standard cell and I/O libraries and Virage logic memory compilers.