News

4 September 2008

 

Tegal to acquire AMMS’ DRIE and PECVD product lines for $5m

Plasma etch and deposition systems maker Tegal Corporation of Petaluma, CA, USA has signed an agreement with Alcatel Micro Machining Systems (AMMS) and Alcatel-Lucent to acquire their Deep Reactive Ion Etch (DRIE) and Plasma Enhanced Chemical Vapor Deposition (PECVD) products, and the related intellectual property, directed at advanced 3D wafer-level packaging applications. As part of the agreement, AMMS president Gilbert Bellini will be appointed to Tegal’s board of directors.

At closing, Tegal will pay AMMS $1m in cash and $4m in newly issued shares of Tegal common stock. The number of shares to be issued will be equal to $4m divided by the average of the closing sales prices of Tegal common stock for the five consecutive trading days immediately prior to the closing date of the acquisition. Subject to closing conditions, the transaction is expected to close on 16 September 2008.

“This is an important strategic move for Tegal,” said Thomas Mika, chairman, president and CEO of Tegal. “These products, along with our current etch and deposition technologies, will form the basis for a comprehensive strategy to aggressively pursue a large, high growth market in MEMS and semiconductor device manufacturing. With this transaction, we believe that we can offer customers the best combination of leading-edge technology, customer support and proven systems for production applications.”

Bellini added: “I am proud to be associated with Tegal and pleased to work with the company as a director to ensure the smooth transition of the AMMS business to Tegal in the near-term and to help guide Tegal into the rapidly expanding markets for 3D wafer level packaging applications.”

Under the terms of the agreement, AMMS' existing installed base of DRIE tools in use by MEMS and integrated device manufacturers will continue to be supported. Tegal adds that it will continue the development of the AMMS DRIE product line, including the integration of the AMMS process modules on its recently-introduced Compact bridge platform and the completion of a 300mm process chamber. Furthermore, Tegal will assume responsibility for AMMS’ joint development programs.

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Tegal reports third consecutive quarter of profitability

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