SAN JOSE, Calif. and CAMAS, Wash., Nov. 6, 2001 - KLA-Tencor Corp. and WaferTech LLC today announced they have achieved a yield-improvement milestone at WaferTech's Washington-based semiconductor foundry since the two companies began working together earlier this year. According to WaferTech officials, the company leveraged the latest process control products and engineering expertise from KLA-Tencor, as well as its own in-house team of yield management experts, to successfully achieve industry-leading yields on its advanced logic processes.

Dr. Steve Tso, president of WaferTech, stated that the company's yields have been further improved, thus changing its relative yield standing within TSMC's global foundry network. In just five months, WaferTech has become one of TSMC's leading yield performers-further enhancing its strategic value as the cornerstone of TSMC's North American presence.

"As the first pure-play foundry in the United States, WaferTech has worked aggressively to become a world-class player in foundry services," Dr. Tso said. "To achieve this goal, WaferTech teamed with KLA-Tencor for the strategic guidance, yield support service, technology tools and process control solutions that could help accelerate attainment of the company's aggressive yield ramp improvement goals. We're very pleased with both the excellent results achieved and the speed of our yield ramp due to the hard work and efficiency shown by both sides of this partnership."

Randy Tully, general manager of the Western business unit for KLA-Tencor's North America Field Operations, headed the joint effort for KLA-Tencor and maintains that WaferTech's foresight and yield vision were critical to the program's success. "With chip manufacturing costs continuing to rise, yield management plays an increasingly vital role in determining a company's competitive position and profitability since it can accelerate the production ramp of new processes and technologies," stated Tully. "This is especially true for foundries, given the variety of new processes and chip designs continuously moving into production."

"WaferTech recognized both the strategic value and profit potential of unrealized yields, and wisely employed the leading tools and fab expertise needed to accelerate their fab yield ramps while optimizing use of limited resources to achieve their goals," said Peter Nunan, vice president of yield technology solutions at KLA-Tencor. "The resulting â??best practices' yield-management strategies now being implemented throughout WaferTech's growing foundry business are producing excellent yields in WaferTech's 0.18-and 0.15-micron projects, as well as its 0.22-micron technology."

About WaferTech: Founded in June 1996, WaferTech is the first dedicated integrated circuit (IC) foundry in the United States. As a dedicated foundry, WaferTech is solely committed to manufacturing the integrated circuits (ICs), or chips, of its customers. The company is a wholly owned subsidiary of Taiwan Semiconductor Manufacturing Company (TSMC), creator and world leader of the dedicated IC foundry industry. Further information about WaferTech is available on the Internet at http://www.wafertech.com


About KLA-Tencor: KLA-Tencor is the world leader in yield management and process control solutions for semiconductor manufacturing and related industries. Headquartered in San Jose, Calif., the company has sales and service offices around the world. An S&P 500 company, KLA-Tencor is traded on the Nasdaq National Market under the symbol KLAC.

Contact:
Meggan Powers
Director Corporate Communications