USA

09/01/1997

USA

Applied Materials Inc., Santa Clara, CA, has charged Varian Thin Film Systems with infringement of several patents relating to physical vapor deposition (PVD). Applied is seeking unspecified damages and an injunction against future sales. Varian Thin Film Systems, which was acquired by Novellus, called the suit`s allegations "unfounded." Varian Associates has filed a federal anti-trust suit against Applied, charging that Applied has used "anti-competitive conduct" in the PVD, ion implant, etch, and CVD markets. The filing in US District Court, Northern California, came at the same time as Varian filed an answer and counterclaims to Applied`s patent infringement suit from June; Varian denied infringement, claimed that the Applied patents are invalid, and also charged that Applied was seeking to use litigation to maintain a monopoly in the PVD market. Varian has also filed a suit alleging PVD patent infringement by Applied.

Applied has also charged AST elektronik USA Inc. and its parent STEAG AST elektronik GmbH, Dornsstadt, Germany, of infringing two US patents owned by Applied, related to processes for high temperature surface reactions in semiconductor materials, and rapid thermal heating apparatus and methods. Applied also claims that AG Associates is infringing on two of its rapid thermal processing patents. AG CEO Arnon Gat says that AG does not believe Applied`s allegations have any merit.

- WaferNews

Applied Materials has decided to funnel an additional $100 million into its 300-mm development program this year. Applied is increasing its total capital expenditures for FY97 to $350 million, according to its 2Q 10-Q filing with the Securities and Exchange Commission. The increase will primarily fund "additional applications lab and research and development capabilities for 300-mm technology," according to the filing. Also, Applied has opened a dedicated metrology lab in Santa Clara for 300-mm processing.

Eaton Corp. has agreed to acquire resist removal and curing specialist Fusion Systems Corp., Rockville, MD, in a cash deal initially worth some $293 million. The company, which specializes in automotive systems, has over the years offered deposition and lithography tools in addition to the ion implant lines that are currently its only major fab tool offering. The Cleveland-based company has identified the fab equipment business as a key element of its growth strategy, and executives leave the door open for future acquisitions.

In addition, Eaton`s Semiconductor Equipment Operations, Beverly, MA, is growing its thermal processing systems (TPS) business with a 40% expansion of its office space in Peabody, MA. The expanded area will house engineering functions, with work there dedicated to new product development, including the company`s 300-mm program. The TPS unit was formed after Eaton acquired High Temperature Engineering Corp. last year, and the expansion follows a similar expansion of the facility earlier this year.

Materials Research Corp.`s reorganization should be finished by the end of the summer. Over the next six months, MRC, a unit of Sony, expects to roll out a number of new offerings and process technologies in both CVD and PVD metallization for 0.25-?m and below, and upgrade to its existing lines of PVD tooling to meet leading-edge applications. Meanwhile, the Scottsdale, AZ-based company has relocated its Asia/Pacific spare part inventory to a SonicAir warehouse in Tokyo. SonicAir is an integrated logistics provider and a UPS Logistics Group Company. Prior to the move, MRC was handling inventory internally through multiple location distribution offices.

Wet bench equipment supplier SubMicron Systems, Allentown, PA, has sold off the assets of its Systems Chemistry chemical distribution subsidiary to the BOC Group in a deal worth some $20 million, which will be used to reduce current bank debt. SubMicron reported a net loss of just over $20 million for 1996 on sales of $171 million, a net loss of $8.5 million for the 1Q on sales of about $36 million and the company expects to report significant losses from operations again in 2Q97.

In a deal that will further advanced CMOS Imager (ACI) technology, Eastman Kodak Co. and Motorola Semiconductor Products Sector have agreed to jointly develop CMOS sensors. Under the agreement, the ACI sensors will be manufactured using Motorola`s ImageMOS technology platform. With analog and microprocessor technologies combined on the sensor chip, Kodak and Motorola said they will be able to create market-specific image solutions for a broad-range of applications in the growing digital imaging market, including high volume, low cost digital still cameras.

In addition, the Semiconductor Products Sector said it will phase out DRAM production between now and mid-2000 in favor of FSRAMs, EEPROMs, and flash memories. With a 2% share of the DRAM market, Motorola said it will take a $170 million charge in 2Q. The charge includes the write off of about 50% of 64-Mbit DRAM technology fees Motorola owes to Siemens under the two companies` White Oak Semiconductor, Richmond, VA, joint venture agreement. The remainder of those fees will be amortized over the next two years, officials said.

Intevac Inc., Santa Clara, CA, has set a joint venture with Matsubo Co., a subsidiary of Ebara Corp., to sell and service Intevac`s D-STAR flat panel display sputtering equipment in Japan and other Asian countries. Capitalized at 1 billion yen (about $8.7 million), the IMAT Inc. (Intevac Matsubo Advanced Technology) joint venture will be 51% owned by Matsubo, 49% by Intevac. Hisao Konno, a Matsubo director, is president of the new venture, based in Tokyo. The FPD equipment to be sold through IMAT was designed under an ongoing development agreement between Intevac and Ebara.

Under a $527 million acquisition deal, investment partnership TX Pacific Group (TPG) will acquire substantially all the stock of Zilog, Campbell, CA. The two firms have signed a definitive merger agreement, but the transaction still must receive shareholder and regulatory approval. Once the deal closes (expected in early 4Q97), TPG will own some 90% of Zilog stock. Zilog is not expected to have publicly listed shares following the merger, which will be accounted for as a recapitalization. For 2Q ended June 29, Zilog logged revenues of $71.3 million and net income of $4.7 million, or $0.23/share.

Ultratech Stepper Inc., San Jose, CA, has formed a subsidiary for its new projection-gas immersion laser doping technology (P-GILD). The subsidiary, Verdant Technologies, will be headed by Ultratech`s group VP Richard Williams. The new unit will first focus on a manufacturing system capable of ultrashallow junctions that perform well below the 100-nm threshold of ion implant systems. Beta shipments of the P-GILD tool are scheduled for late 1998, with production shipments anticipated in 1999.

Komatsu Silicon America Inc. (KSA) has opened a 50,000-ft2 epitaxial wafer manufacturing facility in Hillsboro, OR, and plans to begin mass production there in November. The company is currently producing qualification wafers at the site for customer evaluation. The project is the first phase of a two-phase, $450 million construction plan that began in October 1995. Under the second phase, KSA is building a 42,000-ft2 Czochralski crystal production building and a 140,000-ft2 polished wafer facility. The entire manufacturing facility is slated for full operation by late 1998.

Mattson Technology Inc., Fremont, CA, has received multiple orders for more than $11 million worth of photoresist strip systems from four new manufacturing facilities in Taiwan`s Hsinchu Park. The DRAM and foundry fabs will specialize in 0.35-0.25?m processes and are projected to produce a total of more than 100,000, 200-mm wafers/month.

In two separate agreements, Tessera, San Jose, CA, has licensed its micro ball grid array packaging technology to two Korea-based chipmakers. Beginning in March 1998, Samsung Electronics will begin using the Tessera package at its Onyang, South Korea, facility. Similarly, Hyundai will begin using the technology at its Ichon, South Korea, facility later this year. The license with Tessera allows the company to use the micro ball grid array package format for its own branded products and to offer the package to other chipmakers using Hyundai`s test and assembly facilities.

Olin Microlectronic Materials, Norwalk, CT, has restructured its semiconductor photopolymer unit, separating advanced technologies such as 193-nm resists from more mature core technologies. The reorganization will allow one group to focus on developmental tasks, including advanced 248-nm resists, 193- nm products, and other new-generation materials, while another hones manufacturing and marketing of mainstream products. Meanwhile, Olin was awarded a contract to provide chemical management services to Hyundai Semiconductor America`s fab in Eugene, OR. Olin`s on-site team will be responsible for inventory management, analytical sampling, just-in-time delivery, chemical purity through the point of use, and disposal.

MEMC Electronic Materials, St. Peters, MO, has set aside $250 million for expansion of facilities in the US and Japan. Pilot production of developmental 300-mm substrates is already underway at the St. Peters facility. At the conclusion of a three-stage program, St. Peters will be able to produce 10,000, 300-mm wafers monthly. Meanwhile, construction has begun on a new 300-mm integrated production facility adjacent to MEMC`s existing plant in Utsunomiya, Japan. The 11,000 m2 facility will be able to go from silicon crystals to epitaxial film growth, and will be equipped with advanced metrology and analysis tools. Operations will begin in mid-1998.

FSI International Inc., Minneapolis, MN, has received a $2 million order to provide slurry blending and distribution systems to Cirent Semiconductor, the joint venture of Lucent Technologies and Cirrus Logic Inc. The equipment will control the blending and delivery of slurries to points of use in its Orlando, FL, facility. FSI will also provide enhanced control and monitoring equipment. FSI has also opened its equipment test laboratory at its chemical management division facility in Hollister, CA. The lab is designed for cooperative interaction with slurry suppliers to test the handling characteristics of slurry in FSI`s slurry blending and distribution modules.

Pall Corp., East Hills, NY, has signed a sales and distribution agreement with Matheson Electronic Products Group for the right to sell and distribute NANOCHEM point-of-use gas purification products, as well as the complete line of NANOCHEM products throughout Europe. The line will be used in conjunction with Pall`s proprietary line of Ultramet-L filtration products and sold to manufacturers as an assembly unit.

Kulicke & Soffa Industries Inc. (K&S), Willow Grove, PA, has received an order for 1488 plus gold ball bonders worth $13 million from the Semiconductor Assembly & Test Division of Hyundai Electronics Industries Co. Ltd. for use in its production facility in Ichon City, South Korea.

In addition, K&S has received the first order for a factory-automation-ready version of its new 9020 wire bonder from White Oak Semiconductor. The bonder is designed for integration with the Siemens Flying Shuttle track robot. The systems will be used to produce DRAMs in the first fully automated assembly factory in the US, in Richmond, VA. Moreover, K&S has created a Factory Systems Group to help IC manufacturers successfully make the transition to factory-wide assembly equipment integration, automation, and information management.

Semiconductor Engineering Laboratories Ltd. (SELA), Santa Clara, CA, has received orders from four major US fabs for its MC200 microcleaving system with sub-0.5-?m accuracy and ultra high quality cross-section.

PRI Automation Inc., Billerica, MA, has received a multimillion dollar order from Matsushita Semiconductor Corp. of America for interfloor wafer transport systems consisting of wafer stockers, horizontal transfer mechanisms, and a reticle stocker. PRI expects to install the equipment by late 1997 in Matsushita`s new 200-mm fab in Puyallup, WA. PRI has also leased two additional buildings in Billerica that it plans to use for manufacturing space and demonstration and testing facility for 300-mm wafer handling solutions. The two buildings total more than 37,000 ft2 of space.

The United States Display Consortium (USDC), San Jose, CA, has awarded a contract to Elsicon Inc., Wilmington, DE, for the development of technology, materials, and tools to create a liquid crystal alignment layer by other than mechanical rubbing means. The technology would meet special application needs for alignment to improve process control on pre-tilt angles, eliminate cleaning, and reduce cost of ownership. The $3.3 million development effort is being funded 50% each by the consortium and Elsicon.

FASTech Integration Inc., Lincoln, MA, and AutoSimulations Inc. are combining the FACTORYworks manufacturing execution system software with AutoSimulations` AutoSched Productivity Family. The combined solution, which includes AutoSched AP, Real Time Dispatcher, and ISS Reporter, will offer an integrated solution for FACTORYworks users, with increased through-put, and better equipment and personnel utilization. In addition, FASTech has received an order from Hyundai LCD for FACTORY works manufacturing execution systems (MES) for its L2 and L3 fabs in Ichon, South Korea.

CFM Technologies Inc., West Chester, PA, a maker of wet processing equipment, has received a $4 million order for two Full-Flow 8100 dual vessel systems. The systems will be shipped in 3Q97 and 1Q98 and will be used in a new domestic fab currently under construction.

Concept Systems Design Inc., Fremont, CA, has shipped a CSD 2400 dielectrically isolated polysilicon deposition system to Sipex Corp. Valued at nearly $1 million, the system incorporates Concept`s proprietary productivity technology and will be used at one of Sipex`s facilities in the San Jose area.

ESEC USA Inc., Phoenix, AZ, has received a multimillion dollar order from Hyundai Electronics` Ichon, South Korea, packaging facility. The order includes multiple 2007 lead-on-chip die bonders and 3006F/X wire bonders for use in the production of 16- and 64-Mbit DRAMs.

Cree Research Inc., Durham, NC, a supplier of silicon carbide wafers, has received an order for 800 of its Real Color Module product to Rainbow Vision Co. Ltd. of Seoul, South Korea. The modules will be shipped at the end of this month. Rainbow will use the full color light emitting diode modules to construct a live-action replay board for a new sports arena.

Lumonics Corp., Oxnard, CA, has shipped one of its new air-cooled WaferMark SigmaDSC laser marking systems to the I300I developmental facility for 300-mm wafer technology in Austin, TX. The system is equipped with Lumonics` patented Sigma 100 ND:YLF ultra stable diode pumped laser technology for applying SEMI OCR, BC412, 2D symbology, and other dot matrix formats on 300-mm wafers.

Schlumberger ATE, San Jose, CA, has received a multisystem order for the ITS 9000CV from Temic MHS, Nantes, France. Temic makes digital circuits, microcontrollers, cores, and custom semiconductors. The order is part of a volume purchase agreement totaling more than $4 million. Temic is replacing its installed base of Hewlett Packard testers with Schlumberger`s ITS.

Amtech Systems Inc., Tempe, AZ, has acquired the assets and assumed certain of the related liabilities of P.R. Hoffman Machine Products Corp., a maker of double-sided precision lapping and polishing machines for silicon wafers.

Veeco Instruments Inc., Plainview, NY, has received orders totaling $2.6 million for two of its new IBD-210 ion beam deposition systems from a leading manufacturer of thin-film heads. The orders are scheduled for delivery by 3Q97. The deposition systems will be used for manufacturing the alumina gap on magnetoresistive (MR) thin-film magnetic heads and for R&D in giant MR sensor elements. Veeco has also received an initial PVD system order worth $3.4 million for its Cymetra PVD system from a maker of recording heads for disk drives.

Ibis Technology Corp., Danvers, MA, has received an order from Bookham Technology Ltd., Oxfordshire, UK, for Ibis` SIMOX-SOI wafers that will be used in manufacturing active silicon integrated optical circuit fiber optic access network transceivers.