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1Clear out junk files and repair common Windows errors2Scan for outdated or missing drivers - takes under a minute3Repair Windows errors before they cause bigger problemsMotorola turned to Taiwan Semiconductor Manufacturing Company (TSMC) in 1999 to add flexible chipmaking capacity without relying solely on costly expansion of its own fabs. The deal covered a broad range of semiconductor products—not just chips for phones—and paired Motorola’s 0.25- and 0.35-micron CMOS logic processes with TSMC’s manufacturing capacity and comparable technologies.
What Motorola and TSMC announced in 1999
On February 17, 1999, Motorola announced a manufacturing partnership with TSMC. TSMC would manufacture products across a wide portfolio for Motorola, using processes that included Motorola’s 0.25- and 0.35-micron CMOS logic technologies. Motorola would also be able to use comparable TSMC technologies already in production.
The announcement reflected Motorola’s broader plan to rely more on foundry partners. In 1999, EE Times and EDN reported that Motorola intended to have about 35% of its semiconductor products made through foundries by 2002. The reports also put the share of products coming from wafer fabs outside Motorola’s wholly owned plants at about 50% when joint ventures were included. These were forward-looking targets reported in 1999, not measured results of the TSMC deal.
Why Motorola chose an external foundry
The partnership was intended to give Motorola access to additional manufacturing capacity while letting the company concentrate investment on chip designs that distinguished its products. Bill Walker, then a senior vice president and director of order fulfillment for Motorola’s Semiconductor Products Sector, said major alliances could sharpen that design focus while increasing manufacturing flexibility. He also said the arrangement added technology to Motorola’s portfolio without requiring additional research and development expense.
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Using a foundry could help Motorola respond to changes in demand without making every capacity increase through a large, fixed-cost investment in its own facilities. The approach also reduced the risk of expanding internal capacity that might later be underused. Motorola could seek supply from external partners while retaining the option to work with other foundries.
What chips and process technologies were involved
The agreement covered multiple platforms rather than a single chip family. EDN reported that the work included chips for Motorola cellular telephones and computer peripheral devices. It also reported that Motorola was not making PowerPC processors with TSMC at the time.
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The named manufacturing processes were 0.25- and 0.35-micron CMOS logic processes, described in contemporary coverage as widely used for microcontrollers. The arrangement had two related technology elements: TSMC would manufacture using Motorola’s processes, and Motorola would gain access to comparable TSMC processes already in production. The reported scope does not establish a complete product-by-product list.
How in-house manufacturing and foundry capacity fit together
The strategy was not simply a choice between owning fabs and outsourcing everything. Motorola’s stated approach combined its own manufacturing with foundry relationships and joint ventures. Those options served different purposes:
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| Approach | Role in the strategy |
|---|---|
| Motorola-owned fabs | Retained internal manufacturing capacity; the reported targets did not imply that Motorola would stop making chips in its own plants. |
| Foundry partners such as TSMC | Added external capacity and access to compatible process technologies, giving Motorola more room to adjust manufacturing to demand. |
| Joint ventures | Counted toward the reported 50% share of products made outside Motorola’s wholly owned plants, rather than the separate 35% foundry-production target. |
The figures describe different measures: the roughly 35% target concerned semiconductor products made through foundries, while the roughly 50% figure included production from joint ventures as well as other wafer fabs outside wholly owned Motorola plants.
What changed in the 2002 follow-up
On June 26, 2002, TSMC announced that Motorola had broadened the agreement. TSMC said the arrangement would increase Motorola’s external manufacturing over the following years and cover a significant portion of Motorola’s outsourced semiconductor manufacturing. The companies did not disclose financial terms.
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TSMC characterized the expanded arrangement as part of Motorola’s asset-light strategy. Its stated aims included compatible process technologies and assured supply, alongside more external capacity. That follow-up confirms that the relationship continued and broadened, but it does not quantify how much production the 1999 agreement itself delivered.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Was this about Motorola phones?
It was a semiconductor-manufacturing agreement involving Motorola’s Semiconductor Products Sector, not an announcement about who would assemble Motorola-branded phones. Cellular-phone chips were among the reported products, alongside chips for computer peripherals. The 1999–2002 arrangement should not be confused with a current Motorola Mobility or Lenovo smartphone-manufacturing announcement.
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