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To: Linda Kaplan who wrote (6365)5/3/1999 9:03:00 AM
From: Linda Kaplan  Respond to of 6565
 
Headline: VLSI Technology and Numerical Technologies in Strategic Partnership
for 0.15 Micron and Beyond; VLSI to Support NumeriTech Phase-Shifting

======================================================================
SAN JOSE, Calif.--(BUSINESS WIRE)--May 3, 1999--VLSI Technology,
Inc. (NASDAQ:VLSI) and Numerical Technologies, Inc. (NumeriTech)
today announced a joint development relationship targeted at the
design and manufacture of sub-0.15 micron circuits (0.12-micron Leff).
Under the partnership, the two companies will jointly develop
technology, processes and flows that will enable VLSI customers to
design high-performance, subwavelength(1) ICs.
To enable manufacturing of silicon with 0.15-micron circuit
(0.12-micron Leff) feature sizes with existing process equipment, VLSI
will use NumeriTech's optical proximity correction (OPC) product, and
is also evaluating NumeriTech's phase shifting product. VLSI expects
to put this technology into production use by the second half of 2000.

The Subwavelength Challenge

The current generation of optical lithography equipment prints IC
designs onto wafers at the wavelength of light, 248 nanometers. When
IC features such as the gates on transistors are smaller than the
wavelength of light, features become distorted or disappear
altogether. This problem adversely affects yield and degrades chip
performance. NumeriTech is addressing this subwavelength problem by
integrating phase shifting and OPC throughout the process, all the way
through design layout, mask manufacturing, process development, and
silicon fabrication.
VLSI's customers will be able to use the industry's most advanced
process technologies to achieve the performance advantages of
0.15-micron (0.12 Leff). Throughout the design-to-manufacturing flow
they will receive NumeriTech's support for subwavelength designs that
require the application of OPC and phase shifting, technologies that
together enable semiconductor device features to be printed at
subwavelength dimensions while improving yield and performance.
"We believe that NumeriTech is uniquely positioned in its
technology and business model to solve the critical problem of
subwavelength design and manufacturing," said Ashwin Shah, vice
president of Technology Development at VLSI. "They have a
comprehensive proven solution that makes them an ideal partner for
critical technology "
"VLSI is the leader in designing and manufacturing cell-based
ICs," said Y. C. (Buno) Pati, president and CEO of NumeriTech. "We
expect this partnership to help VLSI customers hit the performance
goals critical for their prime wireless and ASIC markets. The
aggressive roadmap we expect to achieve ratifies that a combination of
phase-shifting and OPC is the only viable production technology for
efficiently producing sub-0.15 micron ICs."

About NumeriTech

Numerical Technologies Inc. (NumeriTech) develops and markets
software applications and services that enable integrated circuit
designers and manufacturers to produce ICs with subwavelength feature
sizes (i.e. below the wavelength of the DUV optical light sources used
in steppers to transfer designs onto silicon wafers). NumeriTech's
products and services provide a critical link between IC design and
manufacturing for the world's leading systems companies and
semiconductor foundries. This year NumeriTech formed strategic
alliances with KLA-Tencor (NASDAQ:KLAC), Applied Materials
(NASDAQ:AMAT), Zygo (NASDAQ:ZIGO), DuPont Photomasks (NASDAQ:DPMI) and
Duet. Additional information about NumeriTech is available on the Web
at www.numeritech.com.

About VLSI

VLSI Technology, Inc. designs and manufactures custom and
semicustom integrated circuits for leading firms in the wireless
communications, networking, consumer digital entertainment and
computing markets. VLSI's value proposition is based on full-service
customer support, deep libraries of vertical market-focused IC
intellectual property, unparalleled custom circuit design expertise
enabled through the Velocity Rapid Silicon Prototyping design style,
and one of the world's most flexible and efficient custom circuit
manufacturing facilities in San Antonio, Texas. The Company is based
in San Jose, California with 1998 revenues from continuing operations
of $547.8 million, and approximately 2,200 employees worldwide. For
more information, visit the VLSI homepage, www.vlsi.com.

Note 1: Subwavelength feature sizes are below the wavelength of
the optical light sources used in steppers to transfer designs onto
silicon wafers.

CONTACT: NumeriTech
Susan Lippincott, 408/919-1910 x 344
susan@numeritech.com
or
Cayenne Communication LLC
Lois DuBois, 650/854-5485
ldubois@batnet.com
or
VLSI Technology
Earle Speranza, 408/922-5268
earle.speranza@sanjose.vlsi.com

KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: COMED COMPUTERS/ELECTRONICS PRODUCT

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