t, f • American Semiconductor Equipment Technologies American Semiconductor Equipment Technologies 6110 Variel Avenue Woodland Hills, California 91367 Telephone: (818) 884-5050 (Thousands of Dollars) Balance Sheet (Fiscal year ending 3/31/86) Working Capital $4,375 Long-Term Debt $2,000 Net Worth $3,446 Current Liability to Net Worth 183.75% Current Liability to Inventory 131.89% Total Liability to Net Worth 241.79% Fixed Assets to Net Worth 241.79% Total Employees 150 Operating performance data are not available Source: Dun & Bradstreet SEMS Industry Econometrics © 1987 Dataquest Incorporated May American Semiconductor Equipment Technologies (Material in this section has been compiled from Dun & Bradstreet financials, Dataquest's SEMS data base, and company literature supplied by ASET. For more information on this start-up company, Dataguest clients are invited to use their inquiry privileges.) > ir THE COMPAMY Background American Semiconductor Equipment Technologies (ASET) was formed in February 1986 to pursue both ongoing and newly developing markets for lithographic systems. The Company was organized by Greg Reyes and Ralph Miller with funding of $3.9 million from four venture capital firms. ASET's product line includes i-line wafer steppers, g-line wafer steppers, substrate steppers, standalone image repeaters and pattern generators, and combination systems. 0perat,^7"g aT«d Strategy ASET Corporation currently serves the semiconductor equipment markets in the image patterning area. The Company also looks to develop business in alternate industries, including laser cards, flat panel displays, and hybrid substrates. ASET maintains research efforts directed toward expanding micro- lithographic technology. ASET acquired the assets of TRE Corporation's wafer stepper and pattern generation manufacturing unit early in 1986. Dataquest estimates that TRE shipped $18 million in wafer steppers in 1982. Stepper revenue declined to $8 million in 1985 and rose to $10 million by year-end 1986. Products ASET's current product line is shown in Table 1. SEMS Industry Econometrics © 1987 Dataquest Incorporated May 1-1' American Semiconductor Equipment Technologies Table 1 ASET PRODUCT TABLE Product Product Alignment Wave- Field Family Name Features Accuracy length Diameter Lithography 802 Wafer 0.2um 432um 29, Stepper 14 . 5nm Lithography 803 Wafer 0.2um 436um 20, 29, Stepper 14 . 5nm Lithography 804 Wafer 0.2um 365um 13, 23nm Stepper Lithography 900 SLR Wafer i-line and g-line 0.2um 365um 13, 23nm Stepper steppers for silicon Series and GaAs. Auto wafer- to-reticle alignment/ auto wafer and reticle handling, system diagnostics, high-volume lum production. Maskmaking 600 Series Auto air gauge focus 436iim 14.5, 20 Systems Pattern camera, extended 29nm Generator/ stage travel, Image independent reticle Repeater edge masking, four- Systems position reticle chamber Source! Dataguest May 1987 Company Management Greg Reyes is President and CEO of ASET. He has 20 years of experience in the semiconductor industry and held executive management positions at Eaton Corporation, Fairchild Semiconductor, Motorola Semiconductor, and National Semiconductor. 1987 Dataguest Incorporated May SEMS Industry Econometrics American Semiconductor Equipment Technologies Ralph Miller is Senior Vice President of Marketing. His background includes 33 years in the semiconductor, semiconductor equipment, and magnetic media industries. His previous positions have included President of National Micronetics Disc Inc., President of the Optimetrix Division of Eaton Corporation, and President of TRE Semiconductor. Dr. Boris Meshman was employed at ASET's antecedent, TRE Semiconductor, since 1981, and is now Vice President of Engineering at ASET. He is respon­ sible for advanced wafer stepper and laser pattern generator development. Chris Van Peski, ASET's Vice President of Special Products, was also previously employed at TRE Semiconductor; he had been with TRE since 1967. He has 28 years of experience in electrical engineering and controls, including 18 years in the semiconductor equipment field. Dr. Harry Stover, Vice President of Technologies and Applications, was previously Vice President of Technology for ASM Lithography. Dr. Stover also worked with Bell Labs and Texas Instruments and held RSJ) management positions at Hughes Research Labs, Signetics Advanced Technology Center, and TRE Semiconductor. Rick Walter, Vice President of Operations, came to ASET from the Reichert-McGain Division of Warner-Lambert, where he was Vice President of Operations and General Manager. Mr. Walter has also worked for Bausch-Lomb and served as Vice President of Operations for the Optimetrix Division of Eaton Corporation. SEMS Industry Econometrics © 1987 Dataquest Incorporated May Anelva Corporation Anelva Corporation 8-1 Yotsuya 5-chome, Fuchu-shi, Tokyo Tel (0423) 64-2111 Telex 2832558 ANELVA 3 California Branch Office 121 East Brokaw Road San Jose, California 95112 Tel (408)998-7311 Telex 352123 Anelva Corporation is a wholly owned subsidiary of Nippon Electric Corporation; therefore, balance sheet data and income statements are not available. SEMS Industry Econometrics c 1986 Dataquest Incorporated Feb. 24 ed. 1 Anelva Corporation THE COMPANY Background Anelva Corporation is a subsidiary of Nippon Electric Corporation (NEC). Anelva began in 1967 as a joint venture between NEC and Varian Associates. Its name then was NEVA (Nippon Electric Varian). In 1979, Varian relinquished managerial control to NEC; in September 1985, Varian sold its final 18 percent of interest to NEC. ANELVA is an acronym for what the Company sees as its three main areas of expertise: AN from analysis, EL from electronics, and VA from vacuum. The Company's first products were analytical instruments newly introduced from Varian and vacuum equipment produced by NEC. Anelva has continued the research and development of vacuum equipment, particularly on thin film deposition for electronic devices and on surface analysis using ultrahigh-vacuum technology. Anelva believes that its technology is especially viable in the following fields: • The development and production of LSI and compound semiconductor devices • Vacuum thin film deposition • The fields of atomic energy, high-energy physics, and new exotic materials and space science Presently, Anelva manufactures and markets analytical instruments, vacuum instruments, and thin film products (see Table 1). 2 © 1986 Dataquest Incorporated Feb. 24 ed. SEMS Industry Econcmietrics Anelva Corporation Table 1 Anelva Corporation MAIN PRODUCTS Category Product Analytical Instruments Mass Spectrometer GC/QAS Surface Analysis (Auger) Auger Spectrometer Vacuum Instruments Vacuum Pumps Ion Pump Combination Pump Ti-Sublimation Pump Sorption Pump Diffusion Pump Mechanical Pump Film Thickness Monitor Vacuum Gauges Valves and Fittings HV or UHV Evaporation System Sputtering System Reactive Ion Etching System Plasma CVD System Molecular Beam Epitaxy System Thin Film Products Plastic Metalizing Source: DATAQUEST February 198 6 SEMS Industry Econometrics C 1986 Dataquest Incorporated Feb. 24 ed. Anelva Corporation Operations All of the Company's production facilities are located in Japan. Anelva has its main factory in Fuchu, Japan, and in 1984 it opened its Fuji plant in Yamanashi prefecture. In 1980, Anelva opened a California branch sales office. International Operations For the fiscal year ended in March 1985, the Company's sales outside of Japan accounted for approximately 5 percent of sales (see Table 2). Table 2 Anelva Corporation PERCENTAGE OF SALES OUTSIDE OF JAPAN Year Percentage 1981* 3.2% 1982* 5.8% 1983* 5.1% 1984* 4.7% 1985* 5.0% *Fiscal year ends March 31 Source: DATAQUEST February 1986 Marketing Presently, Anelva does not have a direct sales force in the United States and does not plan to have one before the end of 1986. Preparatory to hiring such a force, the Company wants to develop a total customer support system during 1986. The elements of such a system are: technical training (courses are already being offered at the San Jose, California, office), service, maintenance, and documentation. 4 © 1986 Dataquest Incorporated Feb. 24 ed. SEMS Industry Econometrics Anelva Corporation Research and Developaent In 1975, Anelva discovered that by introducing reactive gas into a sputtering system, it was possible to achieve anisotropic dry etching. Anelva claims that this was one of the discoveries that led to the development of reactive ion etch (RIE). From this discovery, the Company developed the ILD-4000 series of RIE systems. Anelva is presently devoting resources to the manufacture of molecular beam epitaxy (MBE) for use in the manufacture of GaAs ICs and super-lattice devices. The Company is also directing research into the development of a third main product line, plasma CVD equipment. Employees Anelva has approximately 1,000 employees worldwide: 601 at the Company's main factory in Puchu, Japan; 376 at the Fuji plant in Japan; 28 at the Osaka branch office in Japan; 8 at the Kyushu sales office in Japan; and 6 at the San Jose, California, office. PRODUCTS AND SALES Until 1975, Anelva's products were used primarily in the universities and research and development labs of various enterprises. However, with the growing popularity of thin film deposition, especially in LSI and VLSI, Anelva has been able to develop a series of thin film deposition systems for mass production use: the ILC-1000 series of sputter systems. These systems feature four vacuum chambers and are