Robert:
Intersting speculation regarding NVLS and SMTL. It seems to make sense of an article I puzzled over a few weeks ago....
supersite.net
SpeedFam's alliance with Semitool is "okay" with Novellus
A service of Semiconductor Business News, CMP Media Inc.
Story updated 5:30 p.m. EST/2:30 p.m., PST, 2/18/99
By Bill McIlvaine
NEW YORK -- SpeedFam International Inc.'s alliance with Semitool Inc. on copper processing technology will not affect the status of Integrated Process Equipment Corp. (IPEC) in the copper processing partnership with Novellus Systems Inc., the company said Wednesday at SEMInvest 99.
"There will be no change at all," said SpeedFam president and CEO Richard Faubert at the investors' conference sponsored by Semiconductor Equipment and Materials International.
IPEC, the Phoenix-based CMP tool maker that SpeedFam is in the process of acquiring, has partnered with Novellus and Lam Research Corp. since last summer, and SpeedFam was expected to join the alliance as well. Since Semitool is a direct competitor of Novellus, the relationship between Novellus and SpeedFam IPEC Inc. (the new name of the merged company), could have been strained (see Feb. 17 story).
Faubert insisted otherwise. "Novellus knew this when [the agreement with Semitool] was going through," he said.
Novellus responded in a statement, saying that it felt that the SpeedFam-Semitool agreement was in keeping with the partnership's philosophy of developing open and best-in-class tools. "Novellus is not concerned about SpeedFam's partnering with Semitool, and expects IPEC will continue to work with Lam," the San Jose company said.
Semitool and Novellus are the only major suppliers shipping tools for electroplating copper interconnects.
SpeedFam IPEC is intent on being the No.1 global supplier in chemical mechanical planarization (CMP), Faubert said. The two companies had combined 1998 revenue of $364 million. Faubert suggested that the new company could double that figure--and indeed would have to provide the "critical mass" needed to survive at the top as a broad-line supplier.
He noted that SpeedFam's and IPEC's product lines, selling strategies and even geographic strengths had almost no overlap. IPEC, the originator of CMP technology, remains the leader in metal CMP, while SpeedFam's strength is oxide technology. IPEC has the largest installed base in North America and established channels; SpeedFam has its largest presence in Japan ($200 million in 1998) and direct channels in Europe and Japan.
"We didn't trip over each other," the CEO said.
CFO Roger Marach warned that there would be some "significant charge-offs" in the combined companies' first fiscal quarter, which begins June 1.
-Ritz |
