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News Article

Tegal Receives Order for 900 Series Etch System From Taiwanese Semiconductor Foundry for Telecom Applications

Petaluma, CA. Tegal Corporation (Nasdaq: TGAL) today announced that it has received an order from WIN Semiconductors Corporation, a Taiwanese producer of devices for the wireless and telecommunications markets, for its 900 Series plasma etch system. The system will be used in the production of advanced gallium arsenide-based (GaAs) monolithic microwave integrated circuit (MMIC) devices for wireless telecommunications applications. The order, which marks the first business between the companies, is scheduled for installation in August at WIN Semiconductors Taiwan facility.

"Tegal s 900 Series System is the most flexible and robust etch system available for GaAs applications," said Dr. Chan-Shin Wu, president of WIN. "Tegal s platform provides us with leading-edge plasma etch capabilities that offer high productivity and low operating costs. This supports our goal of becoming the leading global provider of GaAs foundry services to the wireless, information and networking markets. As a new foundry ramping up for wafer production, it is critical that we equip our fab with production-proven processing systems."

"This order for our core product 900 Series plasma etch system from an up-and-coming foundry demonstrates the global reputation our tools have achieved," said Jim McKibben, vice president of Tegal s worldwide marketing and sales. "Our tool will enable WIN Semiconductors to process GaAs wafers for a broad range of wireless and telecom applications. We are excited to partner with one of the industry s newest foundries in this market."

GaAs is a high performance compound semiconductor or "III-V" material. III-V materials are used to make many of the integrated circuits (ICs) for high-performance networks, data communications, cellular phones and other wireless telecommunication devices. Demand for wireless Internet-ready appliances and services is projected to fuel explosive growth for high bandwidth telecommunication ICs.

According to Compound Semiconductor (February 1999), wireless telephony accounted for 70 percent of the 1998 GaAs IC market and will continue to be the single largest application over the next five years. This growth is also serving to power the market for production-capable etch systems, particularly those manufactured by Tegal.

Tegal s 900 Series systems are widely recognized for low cost of ownership and high-throughput. More than 1,300 of the 900 Series systems have been installed worldwide and are supported by an extensive worldwide parts and service organization. Adept at handling both round and square substrates, the 900 Series systems deliver highly reliable, repeatable results in etching a variety of films used to manufacture semiconductors, telecommunications and optoelectronic devices, flat panel displays and thin film magnetic heads.

About Tegal Corporation

Tegal Corporation, headquartered in Petaluma, Calif., is a leading designer and manufacturer of plasma etch systems used in the production of integrated circuits (ICs), opto-telecom devices and other related microelectronics devices. Etching is a key process and must be repeated multiple times in the production of these devices. Tegal markets and services its systems in all major IC-producing regions of the world. Tegal was recently granted its fourth VLSI Research, Inc Ten BEST award in recognition of its superior customer support and service. More information is available on the Internet at www.tegal.com.

Safe Harbor Statement

Except for historical information, the matters discussed in this news release are forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties including, but not limited to industry conditions, economic conditions, acceptance of new technologies, the growth of the wireless market, as well as other risks set forth in the Company s periodic filings with the Securities and Exchange Commission.

Contact: Jim McKibben Tel: 707/763-5600 jmckibben@tegal.com or The Loomis Group, Inc. Gabrielle Svenning Tel: 617/638-0022 gabrielle@loomisgroup.com

 

Jim McKibben
Tel: 707/763-5600
jmckibben@tegal.com
or
The Loomis Group, Inc.
Gabrielle Svenning
Tel: 617/638-0022
gabrielle@loomisgroup.com
 
E-mail: gabrielle@loomisgroup.com
Web site: http://www.tegal.com
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