EAST FISHKILL, N.Y., and SAN JOSE, Calif., December 17 -- IBM and Xilinx Inc. announced what they call a major step toward producing what could be the world's first 90-nanometer (nm) chip. Using IBM's copper-based 90-nm semiconductor manufacturing process technology, the companies have taped out a new Xilinx field-programmable gate array (FPGA) chip design for production in IBM's new 300 mm chip fab. The new process technology has resulted in a 50 to 80 percent FPGA chip-size reduction, the companies said. IBM plans to manufacture the new product line in volume in the second half of 2003 at the company's new $2.5 billion 300-mm plant in East Fishkill, N.Y., which combines IBM technology such as copper interconnects, silicon-on-insulator (SOI) and low-k dielectric insulation on 300-mm wafers. The new facility began operation this year and will be increasing in capacity throughout 2003. IBM and Xilinx announced a manufacturing collaboration last March. The agreement marked the first time IBM would manufacture high-volume parts for a foundry customer using its most advanced processes, which are normally used in high-end microprocessors, custom chips and memory products. IBM is currently manufacturing Xilinx's flagship VirtexX-II Pro semiconductor products using a 130-nm process on 200-mm wafers at IBM facilities in Burlington, Vt., and on 300-mm wafers at facilities in East Fishkill. In June 2002, the companies announced a second technology agreement under which IBM is licensing FPGA technology from Xilinx for integration into IBM's Cu-08 application-specific integrated circuit product offering. For more information, visit: www.ibm.com/chips