Applied Materials Hits 500th Chamber Milestone for Metal Etch DPS Technology.

Business Editors &High-Tech Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--Feb. 2, 2000

Milestone Order Shipping to UMC Where Metal Etch DPS Plus(TM)

Centura(R) System is Production Tool of Record

Applied Materials, Inc. announced the shipment of 500 Metal Etch DPS(TM) process chambers, making it the industry's leading metal etch technology for building leading-edge semiconductor chips. The milestone chambers were purchased by United Microelectronics Corporation (UMC), one of the world's largest semiconductor foundries, for its Fab 5 in Hsinchu, Taiwan. Installed on more than 250 Metal Etch DPS Centura systems worldwide in virtually every advanced fab, these 500 chambers reflect the continuing worldwide demand for production-proven, reliable metal etch technology.

&uot;Applied Materials continues to provide us with the advanced systems and technologies we need to meet our most stringent process and productivity requirements,&uot; said Chris Chi, senior vice president of UMC. &uot;The Metal Etch DPS Plus Centura is our production tool of record because it provides the high productivity, superior performance and low cost of ownership required for our competitive volume manufacturing business. We have a sizable installed base of Metal DPS chambers, nearly all of which have been retrofitted with Applied Materials' latest DPS Plus advancements.&uot;

Launched in 1999, the Metal Etch DPS Plus system builds on the unique decoupled plasma source technology of the Metal Etch DPS Centura system, adding several innovative features that extend its capability to the 0.13 micron generation and beyond. In addition to technology advancements such as new chamber materials, the DPS Plus system increases productivity with its fast Centura VHP+ dual-arm transfer robot, software enhancements, and a rapid cooldown chamber. Overall, the system processes approximately 15 percent more wafers per month in high-volume production environments than other available metal etch systems.

Kevin Fairbairn, vice president and general manager of Applied Materials' Conductor Etch Division, said, &uot;UMC's technology requirements are among the toughest in the industry, due to their broad mix of products and very sophisticated manufacturing controls. UMC's choice of the DPS Plus system as its production tool of record validates its exceptional productivity, uptime and technical performance in one of the most advanced production environments in the world.&uot;

According to Dataquest, a market research firm, the metal etch market totaled $547 million in 1998, and is projected to grow to $1,089 million by 2003.

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 &uot;AMAT.&uot; Applied Materials' web site is www.appliedmaterials.com.