SAN JOSE, Calif., Oct. 16, 2000-KLA-Tencor Corp. (Nasdaq: KLAC) today announced that it has received the prestigious Editors' Choice Best Product Award from Semiconductor International for KLA-Tencor's Catalyst advanced process control (APC) software. KLA-Tencor was given this award in recognition of the contributions its APC software has made to the semiconductor industry by enabling chipmakers to rapidly deploy an integrated APC solution throughout their high-volume manufacturing environments. Utilizing Catalyst, leading-edge microprocessor fab customers have cited benefits such as increased yield and device performance, decreased rework, improved process quality and reduced cycle time.

"Collecting a group of candidates from which we select the 20 winners is a year-round effort," noted Semiconductor International Associate Editor John Baliga. "The Editors' Choice Best Products program differs from traditional magazine award competitions in that products are nominated by users, not by people who make or sell them. We get input from multiple users for each product to verify that each has successfully shown superior performance in semiconductor manufacturing."

"We are honored to have received this award from Semiconductor International for the second year in a row," stated Gary Dickerson, chief operating officer of KLA-Tencor. "This achievement marks our continued efforts to provide technologically advanced and innovative solutions that will enable our customers to maximize their yields and profitability. The semiconductor industry's transition toward fully-automated 300 mm production, and the continued shrinking of design rules, are increasing the value of wafers exponentially-making it necessary for chipmakers to keep their manufacturing operations within very tight process windows. APC solutions like Catalyst will play a critical role in enabling chipmakers to achieve the cost benefits that are expected to come from moving to 300 mm."

Catalyst minimizes the risks associated with integrating APC into existing manufacturing systems. It provides a robust, flexible, scalable open architecture that supports fab-wide run-to-run process control, fault detection, and other applications that depend on real-time process information. This allows engineers to efficiently deploy both feed-forward and feedback process control into key process areas, including lithography, etch, chemical mechanical planarization (CMP) and deposition, with a single integrated software solution. Using model-based control, Catalyst can automatically make recipe adjustments to compensate for process drift, tighten key process parameters and provide faster response decisions when process excursions occur. All of this translates into a dynamic, standards-based APC solution that makes multiple process areas run at peak performance.

"Advanced integrated circuit (IC) design rules are taxing the limits of current processing capabilities, and APC provides the tighter process control that chipmakers need to quickly move up the learning curve," stated Julie Fraser, principal analyst at market research firm Industry Directions, Newburyport, Mass. "As the industry transitions to expensive 300 mm processing, reducing process variability through methods like APC can amount to millions of dollars saved annually. In addition, fabs are becoming so expensive that chipmakers must maximize their yield, and APC is proven to help accomplish this demanding task."

According to Dr. Kyoung Shik Jun, principal engineer of FA Engineering at Samsung Electronics, Catalyst was key to improving CMP processing at Samsung's Kiheung Fab 7. "Automated process control is critical in a multi-device, high-volume semiconductor production environment since improvements in process quality output have a direct correlation with high yield. By integrating KLA-Tencor's Catalyst APC framework in our CMP process, we were able to significantly improve product quality and yield, especially with regard to thickness uniformity. Also, elimination of sampling operations and overall enhancement in throughput have been experienced at our Kiheung operation."

Catalyst is the result of a two-and-a-half-year-long, $10 million Advanced Process Control Framework Initiative project involving AMD, Honeywell and SEMATECH, and supported by the National Institute of Standards and Technology (NIST) Advanced Technology Program (ATP). In March 2000, KLA-Tencor acquired Fab Solutions, a division of ObjectSpace, thus bringing Catalyst into its portfolio of yield management solutions. Fab Solutions-now the Control Solutions Division of KLA-Tencor-is one of several recent examples of KLA-Tencor's ongoing strategy to complement its internal research and development efforts by acquiring market-leading technologies and products outside the company.

KLA-Tencor appeared on Semiconductor International's award list in 1999 with its ASET F5 thin film measurement system. In 1998, KLA-Tencor won the Grand Award for its Surfscan AIT patterned wafer inspection system as well as an award for its High Resolution Profiler Series.

About Semiconductor International: Semiconductor International, published by Cahners Business Information and a part of Reed Elsevier's global array of technical publications, is the leading technical publication reaching and covering the global semiconductor industry. SI boasts the industry's largest and most experienced full-time technical editorial team, and has the largest circulation to semiconductor manufacturers of any industry publication. Additional information about SI and its many products and activities are available at semiconductor.net

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