Lam Wins $33 Million Etch Order From Singapore Foundry SSMC

FREMONT, Calif.--(BUSINESS WIRE)--May 8, 2000--The multisystem order provides capability to transfer technology from Philips MOS4 and TSMC Fab 5, which currently use Lam dielectric, poly, and metal etch equipment.

Lam Research Corporation (Nasdaq: LRCX) today announced an order exceeding $33 million for multichamber advanced dielectric, poly, and metal etch systems. Systems on Silicon Manufacturing Company (SSMC) Pte. Ltd.--a joint venture among Philips Electronics, TSMC, and EDBI (the Singapore government)--will use the new equipment to transfer technology from Philips MOS4 and TSMC Fab 5 for high-volume production.

The equipment set for the transfer processes is being upgraded to increase productivity, lower costs, and extend capability to 0.18 micron and beyond in preparation for the next generation. Lam is providing comprehensive process transfer expertise for 0.18 micron production, including development and process demonstrations at Lam's R&D facilities in Fremont, California, as well as a 10 day install program. Lam is partnering with Philips and TSMC to ensure smooth technology transfer by fully characterizing the processes in the new chambers prior to moving them to SSMC. This approach will allow a "plug and play" solution for SSMC.

"Our equipment design strategy at Lam permits processes to be safely transferred while providing opportunities for extended capability and improved productivity--while minimizing the typical risk associated with equipment changes. In addition, carrying out process validation at Philips prior to startup at SSMC allows for a fast ramp-up with the least risk at SSMC," commented Way Tu, President of Asia Operations at Lam.

SSMC has ordered multiple 3- and 4-chamber advanced dual-frequency dielectric etch, 3-chamber TCP(R) 9400PTX poly etch, and 4-chamber TCP 9600PTX metal etch systems. "Because of the proven production capability of the Lam etch suite at Philips and TSMC and Lam's upgrade strategy and development support, we believe Lam is the best choice for ensuring we meet our productivity and performance goals on schedule," stated Peter Yates, SSMC's Chief Executive Officer.

This press release contains certain forward-looking statements which are subject to the Safe Harbor provisions created by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, without limitation, anticipated product shipments under existing orders, shipment schedules, the prospective demand for the company's products, acceptance and competitiveness of the company's products, our ability to transfer processes among different machines and facilities, and market transition to new processes. Such statements are based on current expectations and are subject to risks, uncertainties, and changes in condition and other risks detailed in documents filed with the Securities and Exchange Commission, including specifically the report on Form 10-K for the year ended June 30, 1999, and the Form 10-Q for the quarter ended March 26, 2000. The company undertakes no obligation to update the information in this Press Release.

Lam Research Corporation is a leading supplier of front-end wafer processing equipment and services to the worldwide semiconductor manufacturing industry. The company's common stock trades on the Nasdaq National Market under the symbol LRCX. Lam's World Wide Web address is http://www.lamrc.com.