USA
10/01/1998
USA
Novellus Systems has cut another 10% from its workforce, and plans to take a $5 million charge to cover the cost of the program in its 3Q. This is the second round of layoffs Novellus has initiated this year, bringing the total cut to 20% of its workforce, or approximately 300-350 people. The first layoff in June was the first official layoff in Novellus` history.
MEMC Electronic Materials, St. Peters, MO, said it will close its Spartanburg, SC, facility, nix plans for a 200-mm wafer making plant in Malaysia, and withdraw from a small diameter joint venture in China. The cuts, along with a voluntary separation program initiated earlier this year, will result in the elimination of 1500 jobs (19% of total workforce), and a $131.4 million pre-tax charge in 2Q ended June 30. CEO Ludger Viefhues said the decision to close the Spartanburg facility and end the joint venture in China is a result of lower demand of smaller diameter wafers now and in the future.
Unit Instruments, Yorba Linda, CA, has agreed to sell off its operation at a lower price, after US Filter Corp. threatened to call off its planned acquisition of the MFC supplier during due diligence review. Under revised merger terms, Unit shareholders will receive $11.03 in US Filter stock for each Unit share, down from the original offer of $12.62/share.
In addition, Unit Instruments has signed a letter of intent to distribute Self-Metering Reservoir (SMR) vapor delivery systems developed by iCon Dynamics LLC, Rhinebeck, NY. Unit will have the exclusive distribution rights to the iCon SMR for the semiconductor industry, and may later manufacture SMRs.
Consortiums and agencies form research program. Work is underway to develop multimillion dollar university-based semiconductor manufacturing R&D centers through a new research program backed by funds from the Semiconductor Industry Association, SEMI/SEMATECH, and the Department of Defense. The first center, the Focus Center Research Program, is in negotiations with the University of California at Berkeley and Georgia Institute of Technology. Work at the center - focusing on new methodologies in designing, testing, and connecting microchip components - is expected to start up this fall. Four more centers are expected to be established.
Building on an existing working relationship, Applied Materials Inc. and Leica Microsystems will collaborate on the development of a full set of systems for defect detection, classification, and source analysis. As part of the work, Leica will install its INS 3000, an advanced optical defect review station, at Applied`s Process Diagnostics and Control facilities in Santa Clara, CA, and Narita, Japan. The system will be combined with Applied`s WF-736 DUO defect detection system, SEMVision defect review SEM, and Oasis data analysis.
SubMicron Systems Corp. (SMS), Allentown, PA, has established an OEM agreement with YieldUP International, under which SubMicron will integrate YieldUP`s surface tension gradient dryer into several of its wet surface preparation product lines. As part of the agreement, SMS will have the rights to purchase, market, install, and service YieldUP`s dryer equipment on a worldwide basis. The agreement also allows SMS to include YieldUP`s CleanPOINT point-of-use filtration system as part of its equipment offering. Three customers have placed orders for the drying technology. In addition, SubMicron has received orders totaling over $4 million from two semiconductor manufacturers. The orders include a GAMA-1 system and two rear-mount systems, both incorporating SMS` high concentration ozone cleaning technology.
Once Micron Technology`s plan to purchase Texas Instruments` memory business is completed, Micron will use TI`s Richardson, TX, fab (the former TwinStar operation) as a design R&D facility. The company will move about 100 product designers and development engineers there, as well as a limited number of information systems staff and support personnel. The TI-Micron deal is expected to close in 2H98, pending all necessary approvals. Before the sale closes, TI plans to shut down the Richardson fab.
Air Products Electronic Chemicals, Carlsbad, CA, a newly created Air Products and Chemicals Inc. business group, and the Specialty Chemicals business of AlliedSignal Inc. will form an alliance. Under the alliance, AlliedSignal Specialty Chemicals, through its Electronic Chemicals Group, will exclusively manufacture and supply a line of electronic process chemicals to Air Products. Air Products will market the products to semiconductor customers and will manage on-site chemical distribution at customer sites under its MEGASYS total chemical management program.
AlliedSignal, Morris Township, NJ, has acquired packaging design firm InterChip Systems. The operation will become a division of AlliedSignal`s Electronic Materials business; be based in Santa Clara, CA; and employ about 25 people. InterChip`s operations in North Andover, MA, and Fairport, NY, will also continue. Other terms of the acquisition were not disclosed. InterChip president Steven Ladd said the deal gives his firm the ability to "support faster product development, expand capacity, and enhance design capabilities."
With support from five major chip- makers, SVG Lithography`s 193-nm development effort is expected to bear fruit with the arrival of an initial engineering exposure system by the end of the year, and first shipments to partners in the first half of 1999. The company reportedly has orders in place for nearly 10 systems. SVGL could be the first vendor to ship full-field 193-nm exposure tools. The company may have extra ability to exploit this position because of its years of development work with MIT-Lincoln Lab.
In two separate alliances, Watkins-Johnson`s Semiconductor Equipment Group has established partnering agreements that will enhance its CVD offerings. Under a joint development effort with PRI Automation`s Equipe division, W-J has developed a new 200-/300-mm vacuum cluster platform for a new series of CVD process modules. W-J has also worked with Nova Measuring Instrument Ltd., Rehovoth, Israel, to integrate its CVD cluster platform with Nova`s integrated thickness-monitoring systems.
The Defense Advanced Research Projects Agency (DARPA) has awarded $10 million in 1998 federal funding to the US Display Consortium (USDC), San Jose, CA, to continue funding infrastructure development programs for the US flat panel display industry. In the past five years, USDC has funded more than 35 programs. Critical areas of funding have included programs related to processing, vital components, materials, and factory management. In addition, DARPA awarded JMAR Technologies Inc., San Diego, CA, a $13 million contract to further advance the development of its PXS laser plasma x-ray source for advanced semiconductor lithography applications.
ATMI Inc., Danbury, CT, has completed its acquisition of NOW Technologies, a maker of semiconductor materials packaging systems. In this pooling of interests transaction, ATMI issued about 1.6 million common shares to NOW shareholders. NOW`s revenues during the first six months of 1998 were about $6 million.
Danaher Corp., Washington, DC, a maker of components and environment controls and part of the M&M Precision Systems group, has made Sonix Inc., Springfield, VA, a wholly owned subsidiary. Sonix manufactures test and inspection equipment, including scanning acoustic microscopes, ultrasonic immersion testing systems, and data acquisition products.
Aeroquip Corp., Maumee, OH, has established a new business unit, Electronic Fluid Systems, to focus on semiconductor and process tool manufacturers. Products in the unit are offered in the categories of electronics cooling, equipment cooling, vacuum and exhaust conveyance, and high purity reactant delivery.
American Silicon Products Inc., Providence, RI, has completed a year-long upgrade of its silicon wafer reclaim processing facilities. The equipment and facilities upgrades included an 18.4 megohm deionized water system with total organic carbons measured at less than 3 ppb, OnTrak wafer scrubbers, Tencor`s laser inspection tools, and a Class 1 cleanroom for final packaging of reclaimed wafers.
Olin Corp., Norwalk, CT, is planning to spin off its Microelectronic Materials division to shareholders as part of a new specialty chemicals business in 1Q99. The move will combine the division with other Olin chemical businesses, including pool chemicals, biocides, sulfuric acid, hydrazine, and performance urethanes. Together, the businesses accounted for $950 million in revenues, or 40% of Olin`s 1997 sales. The spin-off will come in the form of a dividend distribution of the new company`s shares.
STEAG AST Elektronik, Tempe, AZ, and Varian Associates Inc. will enter a product and process development partnership under which both companies will offer an integrated combination of STEAG AST rapid thermal processing equipment and Varian ion implantation systems. In addition, STEAG has delivered its AST 3000 RTP system to Semiconductor 300, the Motorola/Siemens joint venture fab in Dresden, Germany. The AST 3000 is configured for full 300-mm automation with two 25-wafer FOUP loaders.
Speedline Technologies, Franklin, MA, has formed Speedline Semiconductor Packaging Group, a new unit dedicated to Speedline`s packaging tooling. Currently, the group has a number of offerings in the packaging sector, including dispensing systems for flip chip underfill, conductive epoxy and solder paste, as well as ultra-fine pitch solder ball deposition equipment.
Genus Inc., Sunnyvale, CA, has sold its high-energy (MeV) ion implantation equipment product line to Varian Associates Inc., Palo Alto, CA. The sale is valued at roughly $25 million. Genus will use proceeds from the sale to fund further development of thin film products. As part of the transaction, Varian will assume the lease of Genus` implant manufacturing facility in Newburyport, MA. The facility will become part of Varian`s Ion Implant Systems business in Gloucester, MA.
Eyeing FY98 revenues of about $98 million, Zygo Corp., Middlefield, CT, said it will save about $2 million to $3 million with cost containment efforts. The company said it will take a 10% cut to its workforce, freeze wages and salaries, and reduce all discretionary spending. 4Q earnings will include a number of one-time charges for the severance program, slow moving inventory and allowances for doubtful accounts, particularly from some Far East customers.
Johnson Matthey Electronics, Spokane, WA, has established a strategic joint marketing agreement with Flomerics Inc., Marlborough, MA, to provide a combination of design software, validation, and manufactured components to help device makers improve time-to-market performance and to overcome challenges that heat poses in packaging systems. The agreement will allow both companies to increase market share and access new customers in the computer and microelectronics industries. In addition, Johnson Matthey`s ALTA Group has purchased an x-ray diffractometer system from Philips Analytical.
Asyst Technologies Inc., Fremont, CA, has received a multimillion dollar order from Silicon Manufacturing Partners, Singapore, a joint venture foundry between Chartered Semiconductor Manufacturing of Woodlands, Singapore, and Lucent Technologies, Murray Hill, NJ. The $4 million order includes Asyst-SMIF minienvironment solutions and the SMART-Traveler System. These systems automate critical material management functions throughout the fab.
Cognex Corp., Natick, MA, a supplier of machine vision systems, has entered a multimillion OEM agreement with Nikon Corp., Tokyo, Japan. Under the agreement, Cognex will supply more than $5 million of machine vision systems over the next two years for integration into Nikon`s newest generation of wafer steppers. In addition, Cognex has entered a letter of intent to form a global relationship with Rockwell International Corp., a supplier of industrial automation equipment. The relationship will consolidate resources.
FSI International Inc., Minneapolis, MN, has received an order valued at about $2.4 million from a US IC maker. The order included P6000 slurry blending and distribution systems, ChemPrep 100 chemical blending systems, and ChemFill chemical delivery modules. Shipment is scheduled in 4Q98.
AST Products Inc., Billerica, MA, has installed its wafer surface monitoring system at SEMATECH, Austin, TX. The consortium will use the VCA-3000XE system to characterize wafer surfaces during multiple stages of semiconductor manufacturing, primarily in the HMDS priming process. The system monitors wafer surface characteristics using contact angle measurements.
Tegal Corp., Petaluma, CA, has received an order for a Tegal 6500 series etch system from a Japanese chipmaker. The system will be used in the manufacture of nonvolatile ferroelectric random access memory (FeRAM) devices. FeRAM devices are used in smart cards and other memory applications where battery backup is not feasible or desirable.
Therma-Wave, Fremont, CA, has received an order from Advanced Micro Devices (AMD) for a variety of semiconductor film measurement tools to equip AMD`s new mega-fab Fab 30 in Dresden, Germany. Fab 30 will produce 200-mm wafers with microprocessors starting at 0.25 ?m.
Electronic Visions Inc., Phoenix, AZ, is supplying wafer bonding equipment to the New Jersey Institute of Technology, which is enhancing its Microelectronics Research Center (MRC) to support precision wafer bonding processes. The MRC recently installed Electronic Visions` EV450 precision bond aligner and the EV501 universal wafer bonder. In addition, Electronic Visions has expanded its North American organization with the creation of a Technology Group. The group will develop new micromachining processes and equipment, as well as help implement customer solutions.
DuPont Photomasks Inc. (DPI), Round Rock, TX, has purchased a Hitachi HL-800M pattern generator capable of producing photomasks supporting 0.25-?m design rules. The unit will be installed in DPI`s facility in Ichon, South Korea.
The space and technology division of TRW, Redondo Beach, CA, has selected SDL Inc., San Jose, CA, as an initial supplier of high power laser diode pump arrays for an advanced solid state laser designed to generate extreme ultraviolet light for microlithography applications. SDL is scheduled to ship the laser arrays to TRW over the next three months; the order is valued at over $1 million.
Integrated Flow Systems Inc., Scotts Valley, CA, has accepted the production and administration of the set-pressure gas regulator product line for semiconductor gas delivery systems from Evans Components, Portland, OR. Integrated has relocated its manufacturing and administrative operations to a new 10,000-ft2 manufacturing facility in Scotts Valley. Evans will remain as Integrated`s stocking distributor for the Pacific Northwest region.
RF Micro Devices Inc. (RFMD), Greensboro, NC, has made an agreement with Philips Consumer Communications to provide CDMA components for use in PCC`s models 6820 digital PCS handset and 6830 digital/analog dual band handset. The components are fabricated using a silicon bipolar process and are part of RFMD`s Silicon Innovations portfolio of products.
Construction has begun on Canon USA Inc.`s semiconductor equipment division headquarters, a 172,000-ft2 facility being built in San Jose, CA. "This is the time to invest in support and prepare for the upturn, to affirm Canon`s strong commitment to the industry and to our customers," said Noriharu Hirai, VP and general manager of the division. The facility, which will also house Canon Information Systems, is slated for completion in 2Q99.