XILINX AND UMC EXTEND LONG-TIME MANUFACTURING
RELATIONSHIP TO 65NM & BELOW

65nm prototype wafers currently being produced at UMC's 300mm Fab

SAN JOSE, Calif., December 5, 2005 and HSINCHU, Taiwan, December 6, 2005 - Xilinx, Inc. (NASDAQ: XLNX), the world's leading supplier of programmable logic solutions, and UMC (NYSE:UMC, TSE:2303), a world leading semiconductor foundry, today announced the extension of their long-time strategic relationship to include technology development at 65nm and below. In preparation for manufacture of next-generation Xilinx FPGAs, joint research and development efforts have resulted in 65nm prototype wafers, including actual programmable logic circuitry, currently being produced at UMC's 300mm facility in Tainan, Taiwan. In addition, the companies announced that they are in the early stages of process definition for future development of 45nm FPGAs.

For more than a decade, Xilinx has relied upon UMC as its primary manufacturer for high-volume production of its programmable chips, most recently at 90nm. UMC leads all foundries in total 90nm wafers shipped and Xilinx supplies more than 70 percent of the world's 90nm FPGAs, based upon cumulative revenues. A total of four 90nm FPGA families and 28 devices are being manufactured by UMC, including Virtex^TM-4, Spartan^TM-3E, Spartan-3L and Spartan-3.

"Together, UMC and Xilinx have been pioneers across multiple process generations - and we look forward to extending that leadership to 65nm and beyond," said Wim Roelandts, chairman, president and CEO of Xilinx. "By aggressively moving down the process technology curve with UMC, Xilinx continues to deliver the world's lowest cost and highest performance FPGAs to customers. Since our introduction of the world's first 90nm FPGA in 2003, we've had many technology and yield breakthroughs at UMCs Fab 12A. Early results at 65nm, which will initially be targeted for our high performance Virtex family, bode well for our continued success."

"UMC and Xilinx have a long-standing relationship sharply focused on maximizing both companies' competitiveness through technology leadership," added Jackson Hu, CEO of UMC. "Our mutual success at 90nm is the latest chapter in a long history of cooperation. Due to our strategic relationships with technology leaders such as Xilinx, UMC currently leads the foundry industry in 90nm wafer shipments. We believe this is a solid indication of the production maturity and readiness of UMC's 90nm process. At the same time, we are seeing good progress in our development of 65-nm and beyond technologies, with Xilinx playing a major role in our development efforts. "

Early investment in 90nm technology development by both Xilinx and UMC led to delivery of the world's first 90nm FPGA product line in 2003. Xilinx continues to be one of the highest volume purchasers of 300mm wafers globally. To remain at the leading edge and to meet growing customer demand for its popular FPGAs, the company remains committed to a multi-source manufacturing strategy.

About UMC
UMC (NYSE: UMC, TSE: 2303) is a leading global semiconductor foundry that manufactures advanced process ICs for applications spanning every major sector of the semiconductor industry. UMC delivers cutting-edge foundry technologies that enable sophisticated system-on-chip (SoC) designs, including 90nm copper, 0.13um copper, and mixed signal/RFCMOS. UMC is also a leader in 300mm manufacturing; Fab 12A in Taiwan and Singapore-based Fab 12i are both in volume production for a variety of customer products. UMC employs approximately 10,500 people worldwide and has offices in Taiwan, Japan, Singapore, Europe, and the United States. UMC can be found on the web at http://www.umc.com.

About Xilinx
Xilinx is the worldwide leader in complete programmable logic solutions. For more information, visit www.xilinx.com.

This release contains forward-looking statements and projections. Actual events and results may differ materially from those in the forward-looking statements and are subject to risks and uncertainties including the ability to develop and implement leading-edge manufacturing processes and techniques and the ability of the industry to develop and supply new equipment necessary for the production of leading-edge wafers.

Contacts: