NVIDIA and TSMC Celebrate New Milestone: 500 Million Processors

SANTA CLARA, CA AND HSINCHU, TAIWAN—OCTOBER 24, 2006—NVIDIA Corporation (Nasdaq: NVDA) and Taiwan Semiconductor Manufacturing Company, Inc. (TSE: 2330, NYSE: TSM) today celebrated the shipment of the 500 millionth processor designed by NVIDIA and manufactured by TSMC. These processors--which include NVIDIA GeForce® GPUs (graphics processing units) and NVIDIA nForce® MCPs (media and communications processors)--were created on 2.6 million eight-inch equivalent wafers.

“We founded NVIDIA with the vision that GPUs would transform the computing experience. TSMC has played a fundamental role in our ability to fulfill this vision. By providing NVIDIA with leading-edge technology and change-on-a-dime customer service, TSMC enabled us to focus on what we do best--building great technology and markets,” said Jen-Hsun Huang, president and CEO, NVIDIA Corporation.

Mr. Huang added: “In my first meeting with TSMC’s chairman Morris Chang a decade ago, he told me he was building a company based on a foundation of integrity and customer service, and that TSMC employees would ’jump through hoops’ for us. He has lived up to his words.”

Dr. Rick Tsai, president and CEO of TSMC, added: "NVIDIA represents the model for building a successful semiconductor company in the 21st century. As we look to the one billionth processor, we know that our relationship with NVIDIA will continue to be built on the strengths of technology leadership, manufacturing excellence, and collaborative partnership.”

NVIDIA and TSMC began high-volume production in 1998 when NVIDIA was developing processors on the 0.35 micron technology node. Today, NVIDIA leverages TSMC’s process technology leadership and is producing processors on the 65nm node in state-of-the-art 300mm fabs.

“Graphics processors are having an increasingly profound effect on society in computing, consumer electronics, mobile devices, and automobiles. The GPU has become one of the largest semiconductor market segments and has made NVIDIA one of the fastest growing technology companies in history,” commented Dr. Jon Peddie, president of Jon Peddie Research, a market research and consulting company specializing in graphics, multimedia and consumer electronics.

“NVIDIA’s founders recognized that to be successful you have to have great people and great partners. If you want to deliver the best, you use the best, and that’s exactly what NVIDIA did when they signed on with TSMC. For TSMC to have taken a chance on a startup like NVIDIA is a credit to both companies,”Dr. Peddie added.

About NVIDIA
NVIDIA Corporation is the worldwide leader in programmable graphics processor technologies. The Company creates innovative, industry-changing products for computing, consumer electronics, and mobile devices. NVIDIA is headquartered in Santa Clara, CA and has offices throughout Asia, Europe, and the Americas. For more information, visit www.nvidia.com.

NVIDIA, the NVIDIA logo, NVIDIA GeForce, and NVIDIA nForce are trademarks or registered trademarks of NVIDIA Corporation in the U.S and/or other countries.

About TSMC
TSMC is the world’s largest dedicated semiconductor foundry, providing the industry’s leading process technology and the foundry industry’s largest portfolio of process-proven library, IP, design tools and reference flows. The company operates two advanced twelve-inch wafer fabs, five eight-inch fabs and one six-inch wafer fab. TSMC also has substantial capacity commitments at its wholly owned subsidiaries, WaferTech and TSMC (Shanghai), and its joint venture fab, SSMC. TSMC is the first foundry to provide 65nm production capabilities. Its corporate headquarters are in Hsinchu, Taiwan. For more information about TSMC please see http://www.tsmc.com.

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