Applied Materials Ships Industry's First 300mm Production System; 300mm RTP System Sets Industry Milestone.

SANTA CLARA, Calif.--(BUSINESS WIRE)--March 20, 1997--Applied Materials, Inc. shipped the industry's first 300mm production wafer processing system to a customer. The Rapid Thermal Processing (RTP) system is a scaled-up version of the company's highly successful 200mm RTP technology and will be used for annealing 300mm wafers.

"Applied Materials is demonstrating its industry leadership by shipping this first 300mm production system," said Nick Miller, managing director of 300mm programs at Applied Materials. "Our entire portfolio of more than two dozen process technologies is being developed for 300mm, with several 300mm chambers undergoing customer testing at this time. Our single-wafer, multi-chamber 300mm platform builds directly on our successful 200mm product line, giving our customers tremendous flexibility and adaptability to a wide range of process applications."

The RTP system shipped is fully functional including process and transfer chambers, loadlock, orienter, and cooldown chambers and will provide the performance necessary for customer processes through the year 2000 and beyond. Rapid thermal processing is especially well-suited for 300mm applications due to the delicate nature of larger wafers at high temperatures. Traditional furnace technologies have a difficult time supporting these wafers and providing the temperature uniformity necessary to prevent wafer distortions. RTP offers higher quality wafer processing at a lower cost.

"Many of our customers are actively evaluating our 300mm technology for their RTP process requirements," said Dr. Chris Gronet, general manager of Applied Materials' RTP Division. "We are running demonstrations for a number of customers and will be ready to meet their needs when they make the transition to 300mm process equipment."

The inherently scaleable design of Applied Materials' market-leading 200mm RTP Centura allowed a smooth transition to 300mm. Introduced in June, 1995, the RTP Centura employs a unique Honeycomb Source and proprietary Emissometer technology to provide precise measurement and control of wafer temperature. "The 200mm RTP Centura has demonstrated excellent performance for both logic and DRAM production applications," added Dr. Gronet. "Our 300mm system offers the same unsurpassed thermal control and productivity and will make it easy for our customers to transfer to 300mm production."

The semiconductor industry's transition to 300mm wafers is part of an evolution toward larger wafer sizes that has continued for more than 30 years in order to increase productivity and reduce chip manufacturing cost per unit. 300mm wafers have a surface area more than twice that of 200mm wafers and enable semiconductor manufacturers to place more chips on a given wafer.

The early evaluation of 300mm wafer processing systems is starting in 1997. Pilot production of devices by semiconductor manufacturers using 300mm systems is likely to accelerate in 1998 with volume production expected in 1999. Forecasts see a parity with 200mm wafers in about 2005. Today's largest wafers, of 200mm (8-inch) diameter, represent approximately 60% of global semiconductor production, primarily for the most advanced semiconductor devices. The remainder is spread over earlier 150mm (6-inch) and smaller wafer sizes.

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 under the symbol "AMAT." Applied Materials' web site is http://www.AppliedMaterials.com .

CONTACT: Applied Materials, Inc.

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