ARM and Semiconductor Manufacturing International Corp. announced that the two companies have signed an agreement to develop an ARM7TDMI microprocessor core-based test chip.

The test chip, targeted at SMIC's 0.18 micron CMOS process, is the first step in enabling fabless design companies to access ARM microprocessor core technology with a view towards future fabrication.

SMIC was established in Shanghai in August 2000 with the objective of creating world-class wafer fabrication facilities.

The ARM7TDMI test chip will enable local semiconductor houses to develop and validate products around ARM's most widely licensed and popular microprocessor cores.

With a customer base established in China for both companies, the agreement marks the foundation of a complete package of services, from delivery of semiconductor intellectual property through design and validation to manufacturing.

The test chip will complete validation by the end of the year and ARM7TDMI core-based ICs are expected soon thereafter.