The two companies will jointly develop 65nm process technologies for eFlash microcontrollers (MCUs) that fulfill the stringent quality requirements of the automotive industry, as well as the demanding security requirements of the chip card and security markets.

TSMC's search for a European automotive partner was first reported in May 2008.

The partnership extension with TSMC is in line with Infineons strategy to outsource manufacturing and to engage in technology co-development for 65nm and smaller geometry processes.

The 65nm eFlash technology for automotive applications is to meet future safety and emission standards.

Process and product qualification for security MCUs is scheduled for the second half of 2012. Automotive MCU qualification and production start is scheduled for the first half of 2013.

Infineons 32-bit TriCore family MCUs will be the first automotive products produced on the 65nm eFlash process and ultimately, TSMC will manufacture Infineons range of security microcontrollers that feature contact-based, contact-less or dual interface.

Infineon and TSMC have worked together for more than a decade covering a number of applications, such as industrial and wireline.

Based on a manufacturing agreement to use TSMC 65nm low-power technology for Infineons products employed in mobile devices, which started about two years ago, the move to automotive and chip card applications signals a firm and ongoing commitment on the part of both companies to a strong development alliance and a stable and long-term production partnership.