[ORBRF] OERLIKON BUHRLE HD REGD FOREIGN - Switzerland
Swiss-based Unaxis aims to be major player in chip gear, technologies
By J. Robert Lineback, Semiconductor Business News
Jul 13, 2000 (5:41 AM)
URL: semibiznews.com
SAN FRANCISCO -- Unaxis AG isn't yet a widely familiar name in semiconductor equipment circles, but just wait. The recently renamed, refocused Swiss company at July's Semicon West here announced intentions to gear itself up into a major contender in chip production tools and technologies with the creation of a new U.S.-based semiconductor business group. Unaxis Semiconductors folds in recently acquired Plasma-Therm Inc. with a range of manufacturing capabilities that include deposition and etch systems, materials, and thin-film packages for advanced ICs.
Based at Plasma-Therm's facilities in St. Petersburg, Fla., the new business unit begins operations with annual revenues of about $200 million, but in several months those sales will more than double once Zurich-based Unaxis completes its planned acquisition of a majority stake in the ESEC Group, a major supplier of chip-assembly equipment with revenues of 447.9 million Swiss francs ($280 million) and a net income of 51.4 million francs ($32 million) in its last fiscal year, ended Feb. 29.
"Our direction is to leverage on high-growth markets, outside the mainstream," explained Heinz Kundert, chief operating officer and head of Unaxis' Information Technology Division, which includes the new semiconductor business unit as well as optical components and a materials operation providing coating systems for data storage and displays.
Unaxis--which recently became the new name of 54-year-old Oerlikon-Bührle Holding AG in Zurich--intends to make the entire Information Technology Division into the bulk of its business, which now totals 1.85 billion Swiss francs ($1.2 billion) and other manufacturing business unrelated to computer systems and semiconductors. The name "Unaxis" stands for "unified axis," which Oerlikon-Bührle believes describes its new strategy in high-technology markets. Since last October, the Zurich company has sold off operations--including Bally footwear and accessories--to focus on technology suppliers.
"We are not too interested in completing in the mainstream [chip manufacturing technologies], such as DRAM production, because it is a mature segment with few players," Kundert said in an interview with SBN prior to Unaxis' launch of its semiconductor unit at Semicon West. "We are looking at advanced packaging or at thin-wafer capabilities and other high-growth rate segments, where we can have strengths."
But with Unaxis' planned majority stake in ESEC of Cham, Switzerland, the company will gain a strong foothold in large mature equipment segments serving worldwide semiconductor packaging plants. ESEC is ranked as the leading supplier of die bonding tools, and it is making a bid to strengthen its position in wire-bonding systems against rival Kulicke & Soffa Industries Inc. of Willow Grove, Pa. ESEC is also pushing hard in packaging automation stations and flip-chip systems.
Right now, Kulicke & Soffa officials in the U.S. are not worried about Unaxis being able to leverage ESEC's position in backend assembly equipment. In fact, K&S chairman C. Scott Kulicke wasn't even aware that Oerlikon-Bührle had renamed itself as Unaxis.
"Frankly, we don't see ESEC as any threat to our business," said the K&S chief executive officer.
But Unaxis is interested in ESEC's established presence in chip packaging markets to help position itself for the migration of traditional IC assembly technologies from leadframes and wire-bonding tools to thin-film packages and other advanced capabilities, said Kundert. Unaxis isn't planning any name changes with ESEC or restructuring of that company's business once it takes as much as 60% of the shares under the current offer for stock, which is now expected to be completed in September. (Unaxis already holds 27% of ESEC's shares).
"ESEC's brand name will not change, and the company will continue to be listed under the same name," Kundert explained. Unaxis hopes to make a secondary placement of ESEC stock after it completes its option for majority ownership. "We want ESEC to be a public company, but under full control of Unaxis," he added.
Meanwhile, Unaxis continues to expand its existing semiconductor equipment and technology offerings. Earlier this year, the Swiss company completed its $150 million acquisition of Plasma-Therm, which supplies plasma process equipment for thin-film etching and deposition.
During the Semicon West trade show, Unaxis Semiconductors announced a breakthrough in dry etch technology with what the company says is a "true third-generation ICP source" for extremely uniform critical dimension (CD) uniformity in advanced photomasks. "While Unaxis competitors are struggling to catch up to current 0.18 micron dry-etch requirements, the Mask Etcher III introduces mask making performance specifications for the next production node at less than 0.13 micron and beyond," declared Michael Archuletta, director of Unaxis' Photomask Business Unit in St. Petersburg.
To grow advanced packaging technologies, Unaxis believes it can leverage off the synergies between its thin-film and materials offering and ESEC's established presence in traditional backend assembly tools. "This will take time. The advanced packaging technologies are making progress, but no one really knows how soon they will grow into the mainstream," Kundert said. "We know, however, it is certain to happen." |
