Varian Semiconductor Announces 300mm Systems Order From TSMC

GLOUCESTER, Mass.--(BUSINESS WIRE)--Aug. 21, 2000--Varian Semiconductor Equipment Associates, Inc. (NASDAQ: VSEA), a leading supplier of ion implantation systems, today announced that it has received an initial order for 300mm high current and medium current implanters from TSMC, the world's largest IC foundry. The first shipments include VIISta 80 high current and VIISta 810 medium current systems which will be installed at TSMC's 300mm pilot line at Fab 6 in Tainan, Taiwan.

The pilot line is used to evaluate and define TSMC's volume manufacturing environment for Fabs 12 and 14, the company's first dedicated 300mm production facilities.

"We are very pleased that TSMC has selected our next generation VIISta systems for their 300mm pilot line for volume foundry operation," said Richard A. Aurelio, Varian Semiconductor's president and chief executive officer. "This is an acknowledgement of our technology leadership in 300mm platforms from the world's recognized foundry manufacturing leader."

Dr. F.C. Tseng, TSMC's president, said, "TSMC is committed to installing 300mm toolsets at all of its new fabs and has created a strong team dedicated to developing this technology. The installation of Varian Semiconductor VIISta equipment on our pilot line in Fab 6 will accelerate our evaluation of 300mm manufacturing capabilities and contribute to TSMC's leadership in 300mm wafer production."

Varian Semiconductor's new platform uses single wafer technology specifically designed for 300mm production. The VIISta platform provides fundamental innovations in system architecture, common end station and VCS control architecture to meet the highest productivity levels. The platform also provides higher throughput, lower particle counts and lower wafer risk.

About Varian Semiconductor:

Varian Semiconductor Equipment Associates, Inc. is an industry leader in designing, manufacturing, marketing and servicing ion implantation systems, semiconductor processing equipment used in the fabrication of integrated circuits. Through the process and productivity advantages of single wafer technology, VSEA is providing chipmakers with high throughput, low cost and maximum yields. The company is based in Gloucester, Massachusetts and maintains offices around the world. Its stock is traded on the NASDAQ National Market System under the symbol "VSEA." Additional information and background is available on VSEA's website www.vsea.com.

Note: This press release contains forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. For this purpose, the statements concerning the industry outlook, the company's sales growth, market share, capacity utilization and technological improvements and benefits, and any statements using the terms "believes," "anticipates," "expects," "plans" or similar expressions, are forward-looking statements. The forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: the short operating history for the company as a separate entity; volatility in the semiconductor equipment industry; significant fluctuations in the company's quarterly operating results; risks associated with the company's transition to a new information technology infrastructure; the impact of rapid technological change and the company's dependence on the development and introduction of new products; the company's concentration on ion implantation systems and related products; concentration in the company's customer base and lengthy sales cycles; the highly competitive market in which the company competes; risks of international sales; foreign currency risks; uncertain protection of patent and other proprietary