Taiwan Semiconductor Manufacturing Company (TSMC) will join Dutch Philips Electronics NV and Franco-Italian STMicroelectronics in a project to develop production lines for 300mm silicon wafers for semiconductors, an industry source told Reuters on Thursday.
The source said the deal would be announced in early March. Philips declined comment and the other firms were not immediately available to comment.
STM and Philips have been working together in France on a 300 millimetre wafer pilot line, but would benefit by the addition of TSMC, which analysts say is further along in the development of the new technology.
The 300 mm technology is designed to squeeze more chips onto one wafer, saving money and production time.
Analysts say the addition of TSMC would also help with the heavy expense of developing the new technology. Philips is TSMC's largest shareholder, with about 30 percent of the company.
STM is Europe's largest chipmaker and Philips is number three in the region. TSMC is the world's largest contract maker of semiconductors.