Governor: Infineon, Albany Nano-Tech, & Genus Enter R&D Partnership; To Invest $12 Million to Develop Advanced sub 45 nanometer DRAM Cell Applications.

Business Editors/High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--Jan. 28, 2004

New York Governor George E. Pataki today announced that Infineon (NYSE:IFX) (FWB:IFX), Genus, and the UAlbany Center of Excellence in Nanoelectronics have signed a letter of intent to enter into a $12 million, three-year partnership to develop next-generation computer chip memory devices at the nanoscale.

"This new partnership is tremendous news for the Capital Region and will build upon our efforts to attract high-tech investments and jobs here and across Upstate New York," Governor Pataki said. "With International SEMATECH, Tokyo Electron and now the Infineon, Genus and Albany Nano-Tech partnership, our staunch commitment to promoting a high-tech economy in New York through our nationally acclaimed Centers of Excellence program and other high-tech initiatives is paying huge dividends."

This program will bring together additional worldwide technical expertise and state-of-the-art resources in nanoscale materials science and technology to the ever expanding 300mm wafer nanotechnology R&D complex at Albany Nano-Tech (ANT) and its recently created college for nanotechnology, the most advanced such complex of any university in the world.

Under the program, researchers and engineers from Infineon, Genus, and ANT will work jointly on site at the UAlbany Center of Excellence in Nanoelectronics to develop and optimize atomic layer deposition (ALD) processes for both metal electrode and high-k dielectric materials for sub-45nm DRAM capacitors on a Genus StrataGem-300 300mm wafer bridge cluster tool.

The Genus StrataGem-300 300mm wafer cluster tool platform was selected because of its exceptional extendibility and flexibility capabilities. These capabilities, when combined with the outstanding conformality and uniformity characteristics of ALD, will provide a unique pathway for the successful development and manufacturing of reliable material systems for nanoscale device architectures.

Wilhelm Beinvogl, Ph.D, CTO of Infineon's Memory Products Division said, "This development cooperation is another milestone in strengthening Infineon's world leadership for advanced submicron DRAM technology. Together with the other initiatives involving Infineon within the Albany NanoTech Complex, including the first nanotechnology college in the U.S., we view this program as an important component of Infineon's advanced DRAM R&D roadmap. Infineon is excited about taking an active role in the establishment of an ALD centre of excellence at Albany Nano-Tech and its College for Nanotechnology, recently announced by Governor Pataki."

Beinvogl added, "We are confident, that the resulting know how will be a major feature of our advanced DRAM process architecture, and on a broader scale will be beneficial for all advanced CMOS technology of Infineon."

Bill Elder, Chairman and CEO of Genus, Inc. said, "We are delighted to join Infineon and Albany NanoTech in such a leading-edge metal and high-k dielectric material program. It is a significant milestone in Genus' ALD program to be an active participant in the most notable and best funded university program in the United States, especially now with its evolution into the first college for nanotechnology in the world."

Alain E. Kaloyeros, Ph.D., Executive Director of ANT and Founding Dean of the School of NanoSciences and NanoEngineering said, "The establishment of our partnership with Infineon and Genus represents a critical enabling step in our strategic plan to establish a center of excellence in atomic layer deposition to address high-end nanoscale device fabrication and integration needs. This program will significantly strengthen our research, educational, and workforce training programs, and our ability to better serve a key sector of our industrial customer base. We thank Governor Pataki for his vision and leadership in making these programs possible, and welcome the Infineon and Genus researchers on site at Albany and look forward to closely working with them."

Infineon Technologies AG, headquartered in Munich, Germany, offers semiconductor and system solutions for the automotive and industrial sectors, for applications in the wired communications markets, secure mobile solutions as well as memory products. With a global presence, Infineon operates in the US from San Jose, CA, in the Asia-Pacific region from Singapore and in Japan from Tokyo. In fiscal year 2003 (ending September 2003), the company achieved sales of approximately $7.1 billion (Euro 6.15 billion) with about 32,300 employees worldwide.

The company is ranked as the world's sixth largest semiconductor manufacturer in 2002 and the number five supplier in North America for the first six months of 2003. Infineon's U.S. sales grew by 39 percent to $1.6 billion in fiscal year 2003 compared to the previous fiscal year. Infineon's commitment to North America is backed by an expanding presence in the United States, where its subsidiaries employ a total of nearly 2,800 people. Infineon is listed on the DAX index of the Frankfurt Stock Exchange and on the New York Stock Exchange (ticker symbol: IFX). Further information is available at www.infineon.com.

Genus, Inc. manufactures critical deposition processing products for the global semiconductor industry and the data storage industry. To enable the production of intricate micro-computer chips and electronic storage devices, Genus offers its LYNX and StrataGem series of production-proven equipment for 200 mm and 300 mm semiconductor production, and offers thin film deposition products for chemical vapor deposition (CVD), atomic layer deposition (ALD), and pre-clean capabilities.

Genus is at the forefront of market and technology developments in the ALD marketplace, which is gaining acceptance worldwide as a critical technology for sub-0.13-micron production of computer chips and electronic storage devices. Genus' customers include semiconductor manufacturers located throughout the United States, Europe and the Pacific Rim including Korea, Japan and Taiwan. Founded in 1981, the company is headquartered in Sunnyvale, California. For additional information visit Genus' web site at www.genus.com.

The UAlbany Center of Excellence in Nanoelectronics is housed in a new 425,000 sq. ft. complex, including the only 200mm/300mm wafer facilities in the academic world. By mid 2004, the Center's assets will exceed $1.0B in state-of-the-art equipment and tools, housed within 60,000 sq. ft. of Class 1 capable 300mm wafer cleanrooms. These assets are dedicated to providing company partners with a unique environment to pioneer, develop, and test new ideas within a technically aggressive and financially competitive R&D environment.