Lam Introduces Leapfrog Flat Panel Display Etch System; Continuum Marks First System Developed Through U.S. Display Consortium Contract.

FREMONT, Calif.--(BUSINESS WIRE)--May 14, 1996--Lam Research Corporation (Nasdaq:LRCX), a leading global supplier of high density etch and deposition equipment used to manufacture semiconductor chips, today introduced Continuum(TM), a flat panel display (FPD) etch system that enables cost-effective volume production of new generations of large-size FPDs for future business and home applications.

The Continuum system, developed under contract from the U.S. Display Consortium (USDC), utilizes leading-edge semiconductor etch technology that combines high etch rates and throughput with advanced process performance.

Continuum leverages Lam's patented Transformer Coupled Plasma(TM) (TCP(TM)) technology which features a planar, inductively-coupled, high-density plasma source. TCP provides independent control over ion energy and density, while producing a uniform plasma over large substrate surface areas. The ease with which it is scaled to larger substrate sizes will enable Continuum to etch several generations of FPDs, ranging from 320 mm x 340 mm substrates to today's third generation 550 mm x 650 mm substrates. Continuum is designed to handle substrate requirements of up to 600 mm x 720 mm.

Lam Chairman and Chief Executive Officer Roger D. Emerick noted that end-users and product designers are currently driving the demand for larger FPDs with increased resolution, improved viewing angles, higher frame rates, improved brightness, full gray-scale, and lower power consumption. These trends have created demand for advanced production tools that meet tighter process requirements for the manufacture of advanced displays. Emerick added, "The Continuum system delivers leapfrog technology to meet this demand. We believe that the FPD etch market, which is projected to grow to $220 million by 2000, represents an important market opportunity for Lam."

To further enhance etch results, Lam developed a proprietary large-area electrostatic chuck (ESC) for Continuum. Lam's ESC, the first commercially available for large area glass substrates, provides active substrate temperature control while improving etch rate uniformity and reducing particle generation.

Featuring a horizontal seven-sided transport cluster tool platform, Continuum accommodates up to four process chambers and can be easily configured to meet a wide variety of research and development, pilot production, and volume manufacturing requirements. Throughput is dependent on the specific process application and system configuration, though initial targets are to exceed 50 substrates per hour for typical amorphous silicon (a-Si), silicon nitride (SiNx), and indium tin oxide (ITO) etch processes in a three chamber configuration.

The culmination of a two year research and development effort, Continuum is distinguished as being the first system introduced to the market under a USDC development contract. This $13.6 million contract was awarded to Lam in June 1994 for the development and production of an FPD dry etch system. Lam's partners in the USDC program were dpiX (formerly Xerox Palo Alto Research Center), Lawrence Livermore National Laboratories, and the University of Wisconsin. During the development effort, Continuum's etch chamber prototypes were developed with the aid of extensive advanced chamber and source computer modeling techniques -- an industry first.

According to USDC Chief Executive Officer Michael Ciesinski, the introduction of Lam's Continuum system is an important milestone in the consortium's history, being the first of its funded projects to result in a commercial product. "When the development contract was awarded to Lam two years ago, USDC recognized that the U.S. FPD manufacturing infrastructure needed an etch capability for third-generation display production. Lam should be commended for delivering this tool on time and within budget," Ciesinski stated.

Initial etch applications for the Continuum system focus on thin films and film stacks commonly used for thin film transistor (TFT) arrays, found in the majority of today's high-performance consumer and notebook computer active matrix liquid crystal displays (AMLCDs). In rigorous laboratory tests, Continuum has shown etch rates at least several times higher than conventional reactive ion etch tools, including more than 3,500 A/min on a-Si films with selectivity to photoresist and SiNx of 10:1. Etch rates in excess of 6,500 A/min have been achieved on SiNx films and more than 2000 A/min on ITO, a film that has been historically difficult to dry etch. Processes have been developed using a wide array of well-characterized process chemistries.

Dr. Ray Degner, Lam's senior vice president, poly and CVD business units, noted that Continuum's advanced process architecture and superior performance capabilities should help drive the transition to dry etching in FPD manufacturing. Degner reports that the Continuum system has now entered the field evaluation phase, having already completed the initial development and technology assessment phases. A pre-production tool has been shipped to dpiX for testing in the manufacturing environment, and additional shipments are anticipated over the next 12 months. Volume production shipments are expected to commence in fiscal 1997.

Lam Research Corporation is a global supplier of processing equipment to the worldwide semiconductor and flat panel display industries. The company's broad product offerings are focused on etch and deposition, two of the most vital steps in the fabrication of current and future integrated circuits and FPDs. Founded in 1980, Lam is headquartered in Fremont, Calif., and maintains customer support centers throughout the United States, Europe, Japan and the Asia/Pacific region to support its global customer base. The company's common stock trades on the Nasdaq Stock Market under the symbol LRCX. Lam's World Wide Web address is: http://www.lamrc.com

Except for historical information, the matters discussed in this news release are forward-looking statements that are subject to certain risks and uncertainties that could cause the actual results to differ materially from those projected, including the timely development and acceptance of new products, pricing competition and other risks detailed from time to time in the company's SEC reports. The company assumes no obligation to update the information in this release.

CONTACT: Lam Research Corp.

Karen McLennan, 510/572-6692 (Corporate Communications)

[e-mail]

David Ringler, 510/572-6848 (Investors Relations)

[e-mail]

or

MCA 

Sheryl Moreno, 415/968-8900

[e-mail]