KLA-Tencor Acquires Taiwan-based ACME: the World's Leading Supplier of Yield Correlation Software for the IC Industry.

SAN JOSE, Calif.--(BUSINESS WIRE)--Nov. 30, 1999--

Unveils first product based on KLA-Tencor/ACME technology at

SEMICON Japan 99

KLA-Tencor Corp. (Nasdaq:KLAC) today announced it has acquired Taiwan-based software developer ACME Systems Inc. ACME is the leading supplier of yield engineering analysis software used to correlate parametric electrical test and wafer sort yield data with in-line Work In Progress (WIP) and metrology data. In addition to enhancing KLA-Tencor's comprehensive yield management solution set, ACME's engineering analysis and yield correlation software will become a vital extension of the company's newly introduced fab-wide yield information network, PMC-Net(TM).

According to Gary Dickerson, KLA-Tencor's chief operating officer, "Simultaneous with the ACME acquisition announcement, we are introducing our Klarity ACE software module--the first product to incorporate ACME's patented Advanced Correlation Engine. Using this new module in conjunction with PMC-Net, device manufacturers will have access to process and test data that can be rapidly compiled, correlated and analyzed--reducing the time to actionable information and speeding the ramp to higher device yields."

Representing the industry's first fully integrated yield software infrastructure, PMC-Net automates the yield management and process control functions for advanced integrated circuit (IC) manufacturing. In addition, it optimizes the effectiveness of KLA-Tencor's process module control (PMC(TM)) solutions, which utilize integrated defect reduction and process parametric control systems to help fabs accelerate the implementation of critical manufacturing technology transitions such as device shrinks or the transition to copper interconnects.

"ACME's engineering analysis and yield correlation software has been used in TSMC's Fabs 3 and 4 for the past 18 months and has been very helpful to our engineers in troubleshooting low-yielding problems," said Mark Liu, vice president of TSMC South-site. "The combination of KLA-Tencor's proven yield management expertise and ACME's integrated software solutions should provide us with new advanced yield correlation and analysis capabilities in a rapid turnaround fashion. Together this should allow us to improve our manufacturing quality and further facilitate interaction with our customers."

"We consider this a very strategic acquisition--one of several we have made to support our customers' continuous drive for accelerated yield learning and faster return on investment," explained Dickerson. "ACME's advanced engineering analysis software has already proven its ability to deliver such advantages. Installed at 15 fabs around the world, customers report that the ACE technology enables a 10 to 20 times reduction in time from problem identification to solution."

When integrated with KLA-Tencor's industry-leading PMC-Net applications suite, the newly introduced Klarity ACE software module will provide low yielding lot, split lot and wafer yield spatial analysis. These are very compelling capabilities for traditional, fabless and foundry semiconductor companies because they allow the IC manufacturer to bridge the historic industry gap between the manufacturing yield/process control information and the electrical performance of the finished device. As a result, companies leveraging these solutions will be able to quickly and easily correlate specific process excursions to final device performance and reliability.

This is especially crucial for the fabless semiconductor companies and foundries where shared data in an integrated format will allow fabless, in-house design engineers to work closely with fab engineers via the Internet to quickly resolve problems at the prototype, development and production stages. In addition, as the only analysis software that is fully integrated with all popular semiconductor WIP systems, Klarity ACE can quickly identify problem process equipment contributing to yield loss.

Integrating Fab Test and Yield Results to Accelerate Time to

Market

Historically, fab and test floor results have resided on separate databases, requiring time and labor-intensive manual correlation between electrical test parameters and data gathered on the manufacturing floor. "With performance-driven technology changes coming at an ever-increasing pace, IC manufacturers can no longer wait for this crucial information to be compiled manually," noted Dr. Ellis Chang, ACME's chief executive officer. "There is a natural synergy between our engineering analysis software and KLA-Tencor's leading-edge PMC-Net solution. By providing the tools, software and expertise needed to gather all yield and process related data--from incoming wafers to electrical test--into a centralized database, we can automate analysis routines that accelerate time to information for faster yield learning and optimum process parametric control."

Added Dickerson, "The ACME acquisition adds the vital link with parametric electrical test and wafer sort yield data, complementing our integrated defect reduction solution and significantly enhancing our holistic yield management approach. Ultimately, this will dramatically speed the identification and resolution of process problems that impact device yield, performance and reliability--all critical factors in driving overall fab profitability."

Visit KLA-Tencor's booth at Hall 2, A-902 during SEMICON Japan 99 from December 1-3 to learn more about the company's exciting new products and technologies, as well as new developments in Japan.

About KLA-Tencor: KLA-Tencor is the world leader in yield management and process control solutions for semiconductor manufacturing and related industries. Headquartered in San Jose, Calif., the company has sales and service offices around the world. An S&P 500 company, KLA-Tencor is traded on the Nasdaq National Market under the symbol KLAC. Additional information about the company is available on the Internet at www.kla-tencor.com.

Note to Editors: PMC-Net and PMC are trademarks of KLA-Tencor.