SAN JOSE, Calif. -- The IC prototyping service business is heating up as a result of soaring chip design costs and other factors.

For example, e-Shuttle Inc., the company established by Fujitsu Microelectronics Ltd. and Advantest Corp. to provide IC prototyping services, is expanding its offerings. In 2006, the two companies set up a joint venture in the IC prototyping front. The venture uses Advantest's direct-write electron-beam tool.

After recently moving into 90-nm production, e-Shuttle is now shipping 65-nm devices. E-Shuttle is also working on 40-nm process technology, with plans to offer this capability by the end of fiscal 2008.

E-Shuttle is also working with design house partners, including photomask manufacturers Dai-Nippon Printing, Toppan Printing, and Hoya, to support customers that require IC prototyping. Tokyo Electron Devices also is acting as e-Shuttle's support partner in the prototyping service.

In addition, e-Shuttle will expand its capacity for electron-beam products with the rollout of a second direct-write e-beam lithography station set for middle of next month. The initial lithography station, for full-scale production using 300-mm wafers, went into service in November 2007.

Implementation of the second station will increase production capacity and help e-Shuttle develop the technology for the next generation of ICs.

''The alliances between maskless proponent e-Shuttle and mask makers are symbolic of the direction the industry is taking,'' said Haruo Tsuchikawa, president of e-Shuttle,'' in a statement.

''These partnerships in Japan represent the company's first round of alliances; e-Shuttle will also pursue partnerships with international prototyping companies,'' he said. ''We are now negotiating with prototyping companies in the U.S., Europe and China.''

Others are also expanding in the arena. In May, Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) offered a one-two punch in an effort to reduce foundry costs: It has rolled out a new multi-layer photomask prototyping service and a separate design rule checking technology for masks.