Samsung is to make 40nm FPGAs for Xilinx instead of Xilinx's long-term, original foundry partner, UMC, according to the Taiwan newspaper Commercial Times.
Xilinx has been using UMC of Taiwan as its foundry ever since Xilinx was founded. Later on, Xilinx added Toshiba as a second foundry.
Now Samsung appears to have won a contract to make 40nm parts for Xilinx, but whether or not this excludes UMC from participation at the 40nm node is not known.
UMC had been preparing to manufacture 40nm FPGAs for Xilinx for delivery in the first half of 2009. That could be six months behind rival Altera's first 40nm production from TSMC which is expected this year.
Samsung is reported to have offered very good pricing to secure the 40nm contract. Samsung is part of the IBM Common Platform Alliance which includes the foundry Chartered Semiconductor as well as IBM itself. This gives Xilinx the further opportunity of adding two more compatible foundries (i.e. IBM and Chartered) to its manufacturing partnership.
Toshiba will also, it seems, be participating at the 40nm node having already started pilot production of Xilinx FPGAs on both 45nm and 40nm processes.
Xilinx's main rival in the FPGA business, Altera, has always stuck with a single foundry strategy. It has always used TSMC, and TSMC is expected to be in production on 40nm for Altera in Q4 2008.
UMC is expected to continue production of Xilinx parts at the 65nm node.
See also: Mannerisms, the blog of David Manners. Updated twice daily, it's the distinctive, entertaining, authoritative and never dull commentary on the semiconductor industry, from someone who knows. Sign up for the Mannerisms eNewsletter.