The deal is expected to accelerate the development of next-generation ICs and foundry technologies at the 65- (0.065-micron) and 45-nm (0.045-micron) nodes, which are expected to move into production in 2005 and 2007, respectively, according to analysts.

It is also the latest in a series of complex alliances between foundries and integrated device manufacturers (IDMs). Recently, for example, Agere, LSI Logic, Motorola, NEC, Philips, and STMicroelectronics have separately announced plans to "align" themselves with Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) and its 90-nm (0.09-micron) process technology.

Now, TSMC's foundry rival--UMC--has put a new spin on the model. Under the terms of today's announcement, AMD, Infineon, and UMC will pool their respective engineering resources to develop a "common" chip platform at the 65- and 45-nm nodes.

Each company will tailor the chip-manufacturing technology to its own, respective needs. Initial work for the joint development program will take place at a UMC fab in Hsinchu.

With this initiative, Infineon expands upon an existing agreement with UMC to develop 130- (0.13-micron) and 90-nm process technologies. The German company will also join a process development program undertaken by AMD and UMC, which are developing chip-manufacturing technologies for the 65- and 45-nm nodes.

In late 2000, Infineon and UMC announced plans to form a 300-mm silicon foundry company in Singapore. The $3.6 billion venture, dubbed UMCi, is slated for volume production in the fourth quarter of 2003.

Earlier this year, AMD and UMC announced a similar 300-mm foundry alliance in Singapore, dubbed AU Pte. Ltd. The companies will begin commercial production in the joint venture facility on the 65-nm node in mid-2005. AMD and UMC separately announced a foundry agreement under which UMC will produce PC processors to augment AMD's fab in Dresden.

Meanwhile, AMD, Infineon and UMC called the latest alliance a "win-win" situation. "The joint development program announced today brings together industry leaders and their expertise to deliver the next generations of semiconductor technologies," said Robert Tsao, chairman of UMC, in a statement.

"With the combination of Infineon's 300-mm commitment and R&D talents, coupled with AMD's leadership in transistor and process development, and with UMC's process and manufacturing leadership, we are well positioned to be the first semiconductor companies to deliver advanced nanometer technologies on 300-mm wafers," he said.

"The effort with UMC and Infineon will form the foundation for AMD's 65- and 45-nm manufacturing technologies, and allow AMD to put additional development emphasis in process technology areas that are critical to our business and our customers, such as high-performance transistors and interconnects," said Hector Ruiz, president and CEO of Sunnyvale, Calif.-based AMD, in a statement.

With this latest development, Infineon adds a significant research and development activity to its portfolio, added Andreas von Zitzewitz, member of the board and chief operating officer of Infineon.