USA

11/01/1996

USA

California legislature enacts high-tech tax package. The California Legislature recently passed a package of tax incentives (SB 38) that includes three of interest to companies in the semiconductor equipment and materials industry. SB 38 raises the research development tax credit for basic research from 8% to 11% beginning January 1, 1997. The bill also includes an extension of the 6% manufacturers investment credit for cleanrooms built by semiconductor manufacturers and equipment makers. In addition, the bill offers unitary reform that provides a flat 75% deduction for dividends received from foreign affiliates of California-based multinational corporations.

Genus Inc., joining the ranks of downsized capital equipment companies, will lay off 39 workers, or 11% of its worldwide permanent employee base, as part of a move to reduce expenses. The Sunnyvale, CA, company is also implementing a cost-cutting plan that will include cuts in discretionary spending. Genus expects to take a restructuring charge of $3 million to $4 million ($0.18 to $0.24/share after-tax) during the third quarter of 1996 to cover severance costs and other related charges. The company will continue to look at other operating expenses to further control costs.

Anadigics adds cleanroom. Anadigics Inc. plans to add a 10,000 ft2 cleanroom to the new GaAs manufacturing space the company built at its headquarters in Warren, NJ. The new cleanroom, part of a $35 million investment through 1998, will house the production of gallium arsenide ICs. The expansion will double Anadigics`s wafer production capacity, when production begins in 4Q97. The company intends to run 100-mm GaAs wafers, while the equipment purchased will be upgradable to 150-mm production.

Symbios Logic Inc., Fort Collins, CO, has joined 14 other semiconductor manufacturers in a voluntary perfluorocompounds (PFC) Emission Reduction Partnership chartered by the US Environmental Protection Agency. Symbios Logic says that its focus will be broad, researching replacement, abatement, and recycling. Companies in this program aim to evaluate, research, reduce, and control emissions of PFCs and hydrofluorocarbons, so-called "greenhouse gases," used in small quantities in the manufacture of electronic devices. Currently there is no identified proven substitute for these gases in semiconductor manufacturing applications.

Electronics supplier Johnson Matthey Electronics (JME), Chippewa Falls, WI, was presented a $3.25 million business incentives package from the Wisconsin state government. The company was recognized for its commitment to increasing and training the state`s employment base; JME currently employs 600 people at its two facilities in Chippewa Falls. The award was given in the form of $2.75 million in state income tax credits offered by the Wisconsin Department of Commerce. The department will also provide JME with a Customized Labor Training grant of $500,000 to cover half the cost of training 600 new employees the company will hire in the next two years. JME plans to invest nearly $60 million of its own funds in renovating and installing new manufacturing equipment at the facilities.

Fusion Systems Corp., Rockville, MD, has sold Fusion UV Curing, its ultraviolet curing equipment business, to Fairey Group plc, an electronics manufacturer. Fusion said it wants to become a "pure play" supplier of semiconductor manufacturing equipment. Fusion managers hope the move will strengthen the company`s position on Wall Street and position it for possible mergers or acquisitions. The transaction consisted of a sale of assets and an assumption of specified liabilities of the Fusion UV Curing business, and the sale of stock in related subsidiaries. Fusion Systems received $121 million in cash which, after costs and full tax provision, will result in a one-time gain of about $54 million or about $6.60/share in the third quarter.

Smart Machines Inc., San Jose, CA, has begun offering vacuum robotic systems for semiconductor manufacturing equipment. The company boasts a direct-drive robot architecture, an experienced engineering team, and $6 million in funding. The company has begun offering its SVR200 and SVR300 models, capable of handling 200- and 300-mm wafers, respectively. They are said to meet SEMATECH requirements of 10 million mean cycles between failures, and feature software designed to improve substrate motion and boost throughput.

Austin College gets $500K training grant. Austin Community College, Austin, TX, will use a $500,000 grant from the state of Texas to extend a training program for semiconductor technicians. The college`s Semiconductor Technology Education Program, which offers an associates degree, is being funded under a state program designed to boost workers` skills and encourage community colleges to customize their curricula in cooperation with local industries. The college expects to graduate between 150 and 200 qualified wafer fab workers over the next 18 months.

RF Micro Devices Inc., Greensboro, NC, plans to open a $70 million gallium arsenide (GaAs) fab in Greensboro to produce RF devices for the wireless communications industry. Last month, the City of Greensboro awarded the company a $510,000 incentive package, one of the factors leading to the decision to locate the 40,000 ft2 facility in Greensboro near the company`s headquarters. The facility will produce more than 25,000, 100-mm GaAs heterojunction bipolar transistors (HBT) wafers annually. When completed, it will be the world`s largest GaAs HBT fabrication facility.

Kulicke & Soffa Industries Inc., Willow Grove, PA, has received a $4.1 million order for Model 1488 plus gold ball bonders from Amkor Electronics. The order will be shipped to Amkor`s Manila, Philippines, production facility. Amkor had placed a $4 million order earlier in the year. The 1488 plus include optics and software to accommodate the devices` low loops, long wire lengths with large height differences while bonding top of die to PCB base surfaces.

Wright Williams & Kelly, Dublin, CA, a cost-reduction simulation company, has signed a purchase agreement for worldwide implementation of its Two Cool cost of ownership software with SGS-Thomson Microelectronics. The software is a standard model that simplifies communication both inside SGS-Thomson and with suppliers. The agreement encompasses all 12 SGS-Thomson wafer fabs and four assembly facilities at a license value of roughly $20,000 to $25,000/site. The agreement covers both front-end and back-end applications, and will be used for both new equipment purchases and on-going supplier management.

Aehr Test Systems recognized for KGD. The Microelectronics and Computer Technology Corp. has named Aehr Test Systems` known good die (KGD) solution, DiePak, the best performer in its Phase 11a KGD carrier evaluation. The evaluation tested for usability and performance in actual bare die burn-in and test applications. DiePak demonstrated the lowest contact resistance and provided the most protection from damage caused by handlers.

Altera Corp., San Jose, CA, and Amkor/Anam have entered a joint commercialization program to sell Amkor/Anam`s high-performance SuperBGA (SBGA) package. The IC package technology provides a low-profile, high-power BGA with performance benefits over traditional surface mount packages. SBGAs utilize advanced substrate designs with integrated copper heat sinks to allow for enhanced thermal performance. Amkor/Anam invented the SBGA package and then worked with Altera over several months to commercialize the product, noted Gil Olachea, Amkor/Anam`s director of marketing.

Hughes Power Products Inc. (HPP) has been awarded a major contract by United States Display Consortium (USDC) to develop high-performance backlights, a component in liquid crystal displays. USDC will provide $881,000 as a match to the $950,000 being provided by HPP for R&D. The project includes development of software modeling tools and prototype hardware. The project outlines a 15-month schedule of activities leading to delivery of prototypes to the USDC beta site at Optical Imaging Systems for evaluation of performance in several military avionic display assemblies.

Praxair Inc., Danbury, CT, has signed an agreement with Marketech International Corp. to distribute and market Praxair`s gas handling equipment in Taiwan. The agreement includes the exclusive distribution of Praxair`s state-of-the-art Ultrapurge gas cabinets (GC 400 series, one-, two-, and three-cylinder capacity), manual and automatic valve manifold boxes, and gas isolation boxes in Taiwan. Marketech, which has offices in Taipei and Hsin-Chu, has serviced semiconductor manufacturers in Taiwan for nearly a decade.

Display Technology Systems (DTS), St. Paul, MN, has formed a strategic relationship with Creekside Technologies, Plymouth, MN, under which the companies will design and build electron guns for cleaning field emitter device (FED) flat panel displays. DTS, which manufactures ultrahigh vacuum systems used in making FEDs, will provide Creekside with a new market opportunity, while Creekside will share its experience with surface chemical modification and electron beam technology.

AG Associates, San Jose, CA, a supplier of rapid thermal processing equipment, has received several multimillion dollar orders from a major US semiconductor manufacturer for a total of 12 Heatpulse 8108 RTP systems. The systems, which will be used in the manufacture of DRAM devices, will be shipped to fabs in the eastern US and Europe. Shipments have begun and will continue through January 1998.

Bruce Technologies International, North Billerica, MA, has received orders totaling more than $5 million for refurbished and retrofit horizontal furnaces. The furnaces are older equipment that are updated and brought into a fab; retrofit furnaces are fitted with upgraded accessories at their existing installation site. Bruce has also sold to Unitrode Corp. several BDF-41 horizontal furnaces and APEX software for its 150-mm fab under construction in Merrimack, NH. The items, scheduled for delivery in early 1997, will be used for wafer processing of both atmospheric and LPCVD films.

DuPont has opened a multimillion dollar plant in Deepwater, NJ, for the production of ZYRON 116 (C2F6) electronic gas. The new plant, which now doubles DuPont`s capacity for ZYRON 116, is operating at design rates and is routinely producing high purity gas of >99.999% pure. ZYRON 116 is used as a chamber cleaning gas in oxide and selected metal CVD processes, as well as an etchant gas in several plasma process tools. The plant is equipped with in-line gas quality monitoring capabilities and state-of-the-art distributed process control systems.

MEGA Systems and Chemicals Inc., Chandler, AZ, has received orders from Harris Semiconductor for MEGA chemical distribution/dispense systems, including the MEGApure 100, 100SS, and 500SF systems, and assorted support equipment. Harris manufactures MOS power devices. The chemical distribution systems will be installed at Harris` new 200-mm wafer fab in Mountaintop, PA.

FSI International Inc., Minneapolis, MN, has received an order for 10 MERCURY surface conditioning systems from Lucent Technologies. The order is part of a program that allows FSI customers to replace prior-generation spray processing equipment with the most current model. The systems will be used in Lucent`s Reading, PA, plant for cleaning, etching, and stripping processes. In addition, FSI has received a $5 million order from Hitachi Semiconductor America Inc. The order includes model 100 chemical blending systems, ChemFill model 500, 1000, and 5000 chemical delivery modules, and model P2200 slurry dilution and delivery systems.

PRI Automation Inc., Billerica, MA, has received its first order for a wafer transportation system from Texas Instruments-Acer Inc. in Hsinchu, Taiwan. PRI will install the automated material handling system that will move 200-mm wafers between TI-Acer`s Fab 1 and Fab 2 in Hsinchu. The system consists of an inter-floor transfer system, stockers, and an AeroTrak overhead monorail system.

MRS Technology positions for next year. MRS Technology Inc., Chelmsford, MA, a supplier of flat panel display steppers, has postponed efforts to court a merger partner, based on current backlog and prospects for its recently introduced 5200GHR PanelPrinter. The company has received two orders for the PanelPrinter from US semiconductor manufacturers in the fiscal fourth quarter. MRS, however, will continue to search for strategic relationships with two or more beta-site users of MRS`s new model 7000 PanelPrinter. MRS also reports that its 1-?m 5200GHR PanelPrinter system at Futaba Corp. in Mobara, Japan, has manufactured functioning 125-mm field emission displays.

Photon Dynamics Inc., Milpitas, CA, a supplier of test and repair systems for flat panel display, has booked a multimillion dollar order for five In Process Test-Mass Production Systems (IPT-MPS). Photon plans to deliver the systems to two Japanese active matrix liquid crystal display manufacturers by the end of the year. The IPT-MPS system enables manufacturers to detect various defects throughout the manufacturing cycle to provide yield improvement information and avoid unnecessary materials loss.

New Vision Systems Inc., Cambridge, MA, has sold MONO-LITH Analysis software systems and other products valued at over $700,000 to ASM Lithography. MONO-LITH is the industry standard for overlay registration and critical dimension metrology analysis for wafer steppers. ASM will use the software to analyze wafer stepper performance in fabs. MONO-LITH software tracks the data that engineers need to maintain a wafer stepper`s level of performance.

Cognex Corp., Natick, MA, has received a purchase order for roughly $1 million in machine vision systems from F&K Delvotec Bondtechnik GmbH, Ottobrunn, Germany, a manufacturer of semiconductor production equipment. The Cognex vision systems are used on die bonders, to inspect the site, guide robotic grippers, and inspect the die.

Technology Modeling Associates (TMA), Sunnyvale, CA, has finalized a product partnership with the Alberta (Canada) Microelectronic Centre (AMC). Under the agreement, the companies will share product development and marketing of SIMBAD (simulation by ballistic deposition), a simulation program that assists electronic device designers and manufacturers in the design of metal deposition processes used in the fabrication of chips. The software helps designers reduce design time and increase device reliability. SIMBAD was jointly developed by the University of Alberta, Carleton University, and AMC. The software will be integrated with Terrain, TMA`s product for simulation of deposition and etch.

NEC Electronics Inc., a manufacturer of ASICs, microprocessors, flat panel displays, and other electronic products, has opened a new corporate headquarters in Santa Clara, CA, relocating from Mountain View, CA. The new facility, which measures roughly 200,000 ft2, consolidates corporate offices, engineering, marketing, sales, and the company`s US Design Team.

Therma-Wave Inc., Fremont, CA, has shipped its 60th Opti-Probe film thickness system to Samsung Electronics Co. Ltd., Kiheung, South Korea. The systems are being used to measure all film thickness in etch, diffusion, photolithography, and chemical mechanical planarization processes at nine Korean DRAM and ASIC production and development facilities.

Integrated Process Equipment Corp. (IPEC), San Jose, CA, has won orders from Samsung and Siemens for chemical-mechanical planarization (CMP) equipment. Samsung will purchase a "total solution" CMP bay, which includes CMP, metrology, slurry distribution, DI water filtration, and support systems. Siemens has purchased the Avanti 472 CMP machine for use in metal CMP at its new fab in Tyneside, England. Siemens also uses the machines at its Dresden, Germany, facility.

Progressive System Technologies (PST), a manufacturer of substrate automation and isolation technology, has relocated to new facilities in Austin, TX. The 80,000 ft2 facility, a third larger than the previous building, consolidates manufacturing, administrative, and engineering departments, and includes a new manufacturing site and modern engineering labs. PST has hired 20 new employees.

SemiCycle, a recycler of plastic trays used in transporting finished ICs, has been given an award by Motorola`s Scotland cellular phone factory for its efforts. SemiCycle buys used trays from customers, groups them at warehouses in strategic locations, and ships them in sea containers to China where they are inspected, cleaned, and re-sold to chipmakers, in a true recycling process. Motorola said the program had reduced its waste disposal costs and had a salutary effect on the environment.

Matheson Electronics Products Group (EPG), San Jose, CA, is expanding and adding new facilities. EPG will expand its high purity tungsten hexfluoride (WF6) manufacturing capacity by 66% at its production facility in Longmont, CO. Work will be complete by December 1996. The facility is the world`s largest WF6 manufacturing site. Additionally, EPG and Industrial Gas Products have formed Mountain Electronic Gases, Colorado Springs, to serve the specialty gas needs for the electronics industry in Colorado. EPG also plans to establish a 10,000 ft2 northwest regional specialty gas service center to support customers in Washington, Oregon, and Idaho. The center will be fully operational by February.

Norton Electronics, Worcester, MA, will build a manufacturing facility in Gilbert, AZ, to be operational within a year. The facility will manufacture CRYSTAR recrystallized silicon carbide products for the semiconductor industry. Norton also plans to expand its 80,000 ft2 facility in Worcester to add manufacturing and office space.

Veeco Instruments Inc., Plainview, NY, has received orders totaling over $3 million for three Microetch ion beam etching systems from a leading computer and hard drive manufacturer. The equipment will be used in the production of magnetoresistive recording heads. The order includes two Microetch RF-350s to be used to etch the air bearing surfaces of MR head sliders, and a C-2 Cluster Tool targeted for wafer etching applications. Veeco has also delivered the first of two RF-210 Microetch ion beam etching systems to Samsung Advanced Institute of Technology in Suwon, Korea. The RF-210 will be used to etch wafers and sliders for the production of thin-film magnetic heads.

Advanced Specialty Gases Inc. (ASG), San Francisco, CA, has completed a NF3 manufacturing plant in Dayton, NV. NF3 is used in CVD chamber cleaning applications and for in situ plasma and thermal etch/clean processes. The plant will service semiconductor fabs in western and southwestern US, as well as southeast Asia.

Concept Systems Design Inc., Fremont, CA, has relocated both its US and European headquarters into larger facilities. A provider of RF epitaxial deposition equipment, Concept will add manufacturing space, development and customer demonstration labs, and capacity for customer support and training personnel. The new 60,000-ft2 Fremont facility is three times larger than the previous location. The new European facility in Altrincham, England, is twice as large as its previous one.