AMD Orders Applied Materials Systems to Equip 300mm Fab.

SANTA CLARA, Calif. -- Applied Materials, Inc. (Nasdaq:AMAT) received orders from Advanced Micro Devices, Inc. (AMD) for 300mm equipment to manufacture its future advanced 65nm-generation 64-bit microprocessors. The orders cover a broad range of process technologies, including Applied's most advanced etch systems, as well as a comprehensive suite of metrology and inspection tools. The systems are scheduled to begin shipping to AMD's new 300mm Fab 36 in Dresden, Germany, in late calendar 2004.

"Our successful work with Applied Materials in Fab 30 forged a strong and collaborative relationship that will be invaluable as we move to 65nm production," said Gary Heerssen, senior vice president, corporate manufacturing, AMD. "Applied's breadth of 65nm-capable process and inspection technologies, combined with its extensive support capabilities, were key reasons for this major equipment technology purchase, which will help drive AMD forward for the next several years."

"We are very pleased by AMD's choice of Applied Materials to supply many of its critical etch, inspection and other leading process technologies as it moves 65nm chip manufacturing," noted Franz Janker, senior vice president, sales and marketing, Applied Materials. "With each new chip generation it gets harder to achieve top device performance with high yield and fast time to market. Applied's comprehensive product portfolio gives customers access to a depth of expertise that can help them reach their aggressive production goals with fewer problems, enhancing profitability."

AMD selected several types of etchers, including the company's latest Applied Centura(R) Enabler(R) and Producer(R) Dielectric Etch systems for etching advanced copper/low k interconnects. To obtain the highest level of process control, AMD chose the new high-throughput, high-resolution Applied VeritySEM(TM) Metrology CD-SEM, the Applied SEMVision(TM) FIB (focused ion beam) defect analysis system and the ComPlus(TM) wafer inspection system.

Applied Materials was selected as AMD's exclusive supplier of high current, low energy implant technology with its purchase of Applied Quantum(R) X Implant systems. Other technologies chosen for building 65nm transistors included Applied's gate stack and RTP (rapid thermal processing) systems. For dielectric CVD (chemical vapor deposition) applications, AMD purchased a large number of Applied Producer(R) systems to deposit a broad range of PECVD and low k films. A number of Applied Endura(R)2 PVD (physical vapor deposition) and Applied Reflexion(R) CMP (chemical mechanical polishing) systems were ordered for both transistor and copper interconnect applications.

Applied Materials, Inc., headquartered in Santa Clara, California, (Nasdaq:AMAT) is the largest supplier of equipment and services to the global semiconductor industry. Applied Materials' web site is www.appliedmaterials.com