Intevac, Inc. (NASDAQ:IVAC) and TES Co., Ltd. (KOSDAQ:095610) announced today they have entered into a semiconductor capital equipment business alliance. Intevac, with headquarters in Santa Clara, California, is the world leader in magnetic media deposition systems and recently developed the high-productivity Lean Etch™ system for dielectric etch applications. TES is a Korean manufacturer of high-productivity chemical vapor deposition (CVD) systems, as well as other products. The two companies have joined forces to leverage each party’s unique technology, manufacturing and geographic strengths in order to accelerate sales of their semiconductor products.
This alliance covers product development, manufacturing and sales of Intevac’s Lean Etch and TES’ CVD semiconductor equipment products. The terms of the agreement provide exclusive rights to TES to sell and build Intevac’s Lean Etch system for the Korean and Chinese markets, while Intevac has exclusive rights to sell and build TES’ CVD systems for customers throughout the rest of the world. The two companies will work together to optimize operational performance and jointly develop future products.
“There is a strong desire in Korea to cultivate and support local capital equipment companies. TES’ close proximity to the major Korean semiconductor companies, along with their excellent reputation in supporting them, can help us accelerate Lean Etch sales,” said Kevin Fairbairn, president and chief executive officer of Intevac.
“The alliance business model will enable both companies to reduce manufacturing costs and operating expenses while enabling us to offer a wider portfolio of products to our customers. Intevac will now be able to offer CVD systems in our served markets earlier – and at reduced development costs – than previously planned,” Mr. Fairbairn continued. “This business model is a groundbreaking approach to serving the global semiconductor industry.”
“We are very pleased with our alliance with Intevac,” said Shoong Ehl Ju, president and chief executive officer of TES. “By being able to offer Intevac’s Lean Etch system along with our own CVD systems in Korea and China, we will expand and strengthen our business,” he explained. “In addition, this alliance will allow us to offer competitive products utilizing the combined technical resources of both companies. We will improve our CVD product through the integration of Intevac’s high-productivity Lean mainframe, reduce our manufacturing costs and jointly create future products,” Mr. Ju concluded.
Lean EtchTM is a trademark of Intevac, Inc.
About Intevac
Intevac was founded in 1991 and has two businesses: Equipment and Intevac Photonics.
Equipment Business: We are a leader in the design, manufacture and marketing of high-productivity lean manufacturing systems and have been producing Lean Thinking platforms since 1994. We are the leading supplier of magnetic media sputtering equipment to the hard disk drive industry and offer advanced etch technology systems to the semiconductor industry.
Intevac Photonics: We are a leader in the development of leading edge, high-sensitivity imaging products, vision systems and miniature Raman instruments. Markets addressed include military, industrial, physical science and life science.
For more information call 408-986-9888, or visit the company's website at www.intevac.com.
About TES
TES Co., Ltd. (Technology Engine of Science) was founded in 2002, and is headquartered in Yong-in City, Korea. The company sells 200mm and 300mm CVD, ACL, backside etch and oxidation products to the semiconductor industry, and also serves the solar cell, display and LED markets. For more information visit the company’s website at www.hites.co.kr.
Contacts:
Jeff Andreson, Chief Financial Officer, 408-986-9888
Claire
McAdams, Investor Relations, 530-274-0551
