Those claims were backed up today by Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC), which said it has been collaborating with the startup and producing the first Matrix 3-D Memory circuits in preparation for a product launch in 2002. The first products will be nonvolatile memories, which are low enough in cost to be used in place of camera film or audio tape, said Matrix.

Matrix claimed that its patented technology opens up the ability to build ICs in three dimensions--"up" as well as "out" in the horizontal directions, as is the case now with conventional chip designs. The result is a tenfold increase in the potential number of bits on a silicon die, according to the company. Moreover, said Matrix, the 3-D circuits can be produced with today's standard semiconductor materials, fab equipment, and processes.

The company said its technical team has been granted two U.S. patents covering inventions for 3-D semiconductors and production methods. Matrix said it has also filed for more than 60 additional patent applications.

Founded in 1998, Matrix said it has raised over $80 million in funding from Benchmark Capital, Skymoon Ventures, Microsoft, and multiple leading consumer electronics manufacturers, according to the company. Matrix said its staff has spent several years proving that 3-D semiconductors are both practical and highly manufacturable.

The startup company said it plans to formally launch its first products in 2002. Those products will be memory devices, which the company said will be marketed under well-known brand names for portable electronics devices, including digital cameras, digital audio players, games, PDAs, and archival digital storage. The three-dimensional memories can also be used for pre-recorded content, such as music, electronics books, digital maps, games, and reference guides, according to Matrix.

The Matrix 3-D Memory will be an archival storage device designed to hold information securely for many decades, said the Santa Clara company. Memory cards based on Matrix 3-D Memory will be write-once, available in standard flash card form factors, interchangeable with existing flash cards, and compatible with existing memory standards.

Silicon foundry giant TSMC and Matrix said they have been collaborating on 3-D semiconductor technology -- co-developing a manufacturing process that is tested, stable, and mature, according to the two companies.

"We are working closely with Matrix to continue in both advanced development and volume production," said Genda Hu, vice president of marketing at TSMC. The Hsinchu-based foundry company said it has been producing the first Matrix 3-D Memory chips since "the latter half of 2001."

Matrix president and CEO Dennis Segers said the partnership with TSMC "underscores and validates" the company's efforts in three-dimensional circuits. Matrix Semiconductor also today announced its management team, which in addition to Segers includes Siva Sivaram as chief operating officer and Dan Steere as vice president of marketing. The company also said three widely recognized innovators in the electronics industry -- Mike Farmwald, Tom Lee, and Mark Johnson -- have been working for several years to prove that 3-D semiconductors could be used for volume production.

Prior to joining Matrix full time, Segers was the senior vice president and general manager of Xilinx Inc.'s Advanced Products Group. Segers has also held positions at Benchmarq Microelectronics, Summit Micro Circuits, National Semiconductor (formerly Fairchild), and Mostek.

Sivaram joined Matrix as chief operating officer in November 1999. Prior to joining the startup, Sivaram was with Intel for 14 years. His last position at Intel was general manager for the Integrated Circuit Procurement and Enabling Division, which conducted business with silicon foundry suppliers worldwide. Sivaram has also held positions as a research scholar at Matsushita Electric in Japan, a technologist with Sematech, and an adjunct faculty member at San Jose State University.

In February 1999, Steere joined Matrix to run the company's sales and marketing operations. Steere has a background in both consumer and technology sales and marketing. He has held positions at Intel focused on mobile computing and the consumer electronics industry. Following his employment at Intel, Steere was involved with the business-to-business Internet market as business unit manager at pcOrder.com. He was also involved in the re-launch of that company's core service, TechBuyer Online.