Common use of Volume Commitment Clause in Contracts

Volume Commitment. (a) Customer agrees to purchase annually from TSMC, either itself or through its Affiliates, the Customer Committed Capacity set forth for such year on Exhibit B and, subject to the payment of the Option Fee by Customer under Section 5 below, TSMC agrees to provide to Customer the TSMC Committed Capacity, as set forth in Exhibit B. In any calendar year, the orders placed by Customer or its Affiliates shall first apply to fulfill the Base Capacity portion of the Customer Committed Capacity, and then the Option Capacity portion. (b) Each month, Customer agrees to provide to TSMC a six-month rolling forecast of the number of wafers that Customer will purchase, with the volume for the first twelve weeks being frozen (i.e., Customer must purchase all of the quantity forecast for the delivery in the first twelve weeks of the forecast). The forecast must be based on wafers out. (c) TSMC will use its best efforts to cause its fabs to be capable of producing wafers of more advanced specifications, as set forth in the TSMC Technology Road Map attached as Exhibit C. (The parties anticipate that the conversion factor for migration of 6" to 8" inch wafers will 1.

Appears in 2 contracts

Sources: Option Agreement (Adaptec Inc), Option Agreement (Adaptec Inc)

Volume Commitment. (a) Customer agrees to purchase annually from form TSMC, either itself or through its Affiliates, the Customer Committed Capacity set forth for such year on Exhibit B and, subject to the payment of the Option Fee by Customer under Section 5 below, TSMC agrees to provide to Customer the TSMC Committed Capacity, as set forth in Exhibit B. In any calendar calender year, the orders placed by Customer or its Affiliates shall first apply to fulfill the Base Capacity portion of the Customer Committed Capacity, and then the Option Capacity portion. (b) Each month, Customer agrees to provide to TSMC a six-month rolling forecast of the number of wafers that Customer will purchase, with the volume for the first twelve weeks being frozen (i.e., Customer must purchase all of the quantity forecast for the delivery in the first twelve weeks of the forecast). The forecast must be based on wafers out. (c) TSMC will use its best efforts to cause its fabs to be capable of producing wafers of more advanced specifications, as set forth in the TSMC Technology Road Map attached as to Exhibit C. (The parties anticipate that the conversion factor for migration of 6" to 8" inch wafers will 11.78.) 5 ----------------------------------------------------------- Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. -----------------------------------------------------------

Appears in 2 contracts

Sources: Option Agreement (Adaptec Inc), Option Agreement (Adaptec Inc)

Volume Commitment. (a) Customer agrees to purchase Purchase annually from TSMC, either itself or through its Affiliates, the Customer Committed Capacity set forth for such year on Exhibit B and, subject to the payment of the Option Fee by Customer under Section 5 below, TSMC agrees to provide to Customer the TSMC Committed Capacity, as set forth in Exhibit B. In any calendar year, the orders placed by Customer or its Affiliates shall first apply to fulfill the Base Capacity portion and the Option to Base Capacity portions of the Customer Committed Capacity, and then the Option Capacity portion. (b) Each month, Customer agrees to provide to TSMC a six-month rolling forecast of the number of wafers that Customer will purchase, with the volume for the first twelve weeks being frozen (i.e., Customer must purchase all of the quantity forecast for the delivery in the first twelve weeks of the forecast). The forecast must be based on wafers out. (c) TSMC will use its best efforts to cause its fabs to be capable of producing wafers of more advanced specifications, as set forth in the TSMC Technology Road Map attached as Exhibit C. C (The parties anticipate that the conversion factor for migration of 6" to 8" inch wafers will 1be 1.78.).

Appears in 1 contract

Sources: Option Agreement (Adaptec Inc)