Applied Materials Announces New RTP Oxide Technology.

SANTA CLARA, Calif.--(BUSINESS WIRE)--Nov. 21, 1997--

RTP Wet Oxide Process Targets New Market,

Offering Economic and Technical Advantages over Furnaces

for Several Chipmaking Applications

Applied Materials, Inc., the leading global supplier of Rapid Thermal Processing (RTP) systems, announces a new advancement in RTP process technology aimed at next-generation thermal silicon dioxide applications. The innovative RTP Wet Oxide process for Applied Materials' RTP XE Centura(R) system offers technical and economic advantages over traditional furnace technology for growing several types of thin silicon dioxide layers on semiconductors.

When used to grow the critical thin gate oxides, one RTP XE Centura system can replace up to four vertical tube furnaces, offering chipmakers a clear advantage in cost of ownership and throughput per system footprint. A new advance in steam generation technology, called In Situ Steam Generation (ISSG), allows a broad range of steam concentrations for oxide growth -- from the very dilute concentrations necessary for next generation gate oxides as thin as 25 angstroms, to the higher concentrations needed for enhanced growth rates in thicker oxide films.

"Wet oxidation is a large market that is shifting from being purely cost-driven to both cost- and technology-driven," noted Dr. Chris Gronet, general manager of Applied Materials' RTP division. "The RTP XE Centura's Wet Oxide technology surpasses furnaces in both areas, cutting operating costs while also improving process performance. The system's advanced temperature control enables it to grow films with better uniformity and repeatability than is possible using furnace technology. This technology has the potential to address all oxide growth steps, from thin gate oxides to thicker oxide films."

The RTP Centura was introduced in June 1995 for standard RTP applications, including annealing and silicidation. The RTP market totaled approximately $195 million in 1996, according to Dataquest. At the same time, Applied Materials estimates the 1997 market for thermally grown oxides, which is currently dominated by vertical tube furnaces, at approximately $300 million. Therefore, by broadening the RTP XE Centura system's process applications to address silicon oxidation (announced May 1997), and now wet oxide growth, the system's potential market has grown to more than $500 million.

The RTP XE Centura's wet oxidation process uses steam as the process reactant, hence the name "wet" or "steam" oxidation. The system's high throughput is the result of optimized wafer handling and very high oxide growth rates. These rapid growth rates are made possible by the enhanced oxidation rate of steam compared to oxygen. In Situ Steam Generation technology is performed in a reduced-pressure RTP Centura chamber where the steam is generated from ultrahigh-purity hydrogen and oxygen at precise concentrations.

In Situ Steam Generation technology is immediately available on the RTP XE Centura reduced pressure system and is also offered as an upgrade for all reduced-pressure RTP Centura and RTP XE Centura systems.

"There are also compelling advantages to using single-wafer RTP over batch-type systems at the 300mm wafer size," said Dr. Gronet. "We are currently working with several customers on planned process transfers from 200mm to 300mm systems. Our wet oxide capability is of tremendous interest to many customers as 300mm wafers converge with 0.18-micron geometries. Since we are already shipping 300mm RTP systems for development applications, we expect that customers will be able to easily implement a 300mm wet oxide process as they move into production."

After only a short time in the market, Applied Materials became the global RTP market leader in 1996, according to Dataquest and VLSI Research. More than 130 RTP Centura systems have been shipped to fabs around the world.

Applied Materials, Inc. is a Fortune 500 global growth company and the world's largest supplier of wafer fabrication systems and services to the global semiconductor industry. Applied Materials is traded on the Nasdaq National Market System under the symbol "AMAT." Applied Materials' web site is http://www.AppliedMaterials.com .

CONTACT: Applied Materials

Betty Newboe, 408/563-0647 (editorial/media)

Carolyn Schwartz, 408/748-5227 (financial community)