Applied Materials Enables Future Chips with New Atomic Layer Technology; Advanced Deposition Technology Needed for Tomorrow's Ultrahigh-Speed Nano-Chip Designs.

Business Editors/High-Tech Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--July 22, 2002

Applied Materials, Inc. today announced a new system to enable the manufacturing of future ultrahigh-speed computing and communications chips. The leading-edge product features Atomic Layer Deposition (ALD) technology in which single layers of atoms are used to build the chip. This technology can help chipmakers achieve geometries 50 percent smaller than today's (130nm) devices and fabricate more powerful chips containing potentially 20 times the number of transistors delivering 5 times the speed.

"We are rapidly entering an era where chip dimensions will be measured in a few atomic layers, which will make our years of measuring these features in microns or even tenths of microns seem quite primitive," said Dr. Ashok Sinha, senior vice president of Applied Materials, Silicon Business Sector Products. "With its ability to deposit many different materials literally atom by atom, ALD is an important technology for the future of the semiconductor industry. As the technology leader of the industry, we have developed ALD as part of our ongoing multi-generational R&D effort, in which we work closely with customers to develop tomorrow's key products."

Applied Materials currently offers three ALD products, all aimed at increasing chip performance by depositing films that enable smaller and faster copper interconnect, transistor and capacitor structures. In addition to systems for depositing tungsten and titanium nitride films that were introduced last year, the company announced a new product, the Endura(R) iCuB/S(TM) Integrated Cu Barrier/Seed system, today at Semicon West 2002. The iCuB/S system combines new ALD technology with an advanced PVD process to enable copper wiring structures for the 65nm chip generation and beyond that are also compatible with emerging low (kappa) dielectric materials.

"Applied Materials' comprehensive ALD programs are a good example of the new paradigm in technology development," noted Dr. Sinha. "Our customers want us to provide multiple systems that work together to make a chip structure. We are using our dedicated EPIC and Process Module Technology Center facilities to ensure that our ALD technologies provide an integrated, Total Solutions(R) approach to our customers. This strategy, which only Applied Materials can offer, will be key in their ability to rapidly move new processes and materials into their fab line without years of additional research and development time."

Applied Materials' three ALD products represent a fraction of the potential uses of ALD technology. As the industry proceeds further into the nano-chip era, many additional applications of this deposition method are expected. With decades of leadership in semiconductor deposition technology, Applied Materials is uniquely positioned to create and commercialize ALD processes to realize its full potential.

Applied Materials (Nasdaq:AMAT), the largest supplier of products and services to the global semiconductor industry, is one of the world's leading information infrastructure providers. Applied Materials enables Information for Everyone(TM) by helping semiconductor manufacturers produce more powerful, portable and affordable chips. Applied Materials' web site is www.appliedmaterials.com.