THE NEXT LEVEL: SpeedFam-IPEC's dry-in/dry-out Momentum300 is one of the CMP tools that Novellus will market. PHOTO COURTESY OF SPEEDFAM-IPEC

Novellus Systems of San Jose is poised to enter the chemical-mechanical planarization tool market. The manufacturer of deposition systems has signed an agreement to buy SpeedFam-IPEC of Chandler, AZ, in a stock-for-stock merger. A leading proponent of copper damascene processes, Novellus sees the acquisition as a further step toward greater integrated wafer processing. The Arizona tool manufacturer will form a new product group for Novellus.

"We view CMP as a key manufacturing technology which will have a significant impact on the yield and performance of the interconnect structure," says Richard Hill, chairman and CEO of Novellus. "We believe that the opportunity to interactively optimize the planarization, deposition, and surface preparation for overall performance will give Novellus a major advantage in extending copper/low-k processes to advanced devices."

The proposed deal also calls for Novellus to assume SpeedFam-IPEC's net debt of approximately $115 million. The total value of the transaction is $220 million. The boards of directors of both firms have already approved the deal. Final signing is expected to take place during the fourth quarter of 2002 following approval by SpeedFam-IPEC's shareholders.

The manufacturer of CMP equipment has been working with Novellus as a member of the Damascus Alliance. The alliance focuses on technical issues involving copper damascene integration. Richard Faubert, president and CEO of SpeedFam-IPEC, says Novellus's "financial and technical horsepower" presents a "great opportunity to bring our Momentum 200- and 300-mm products to the market."

The Momentum300 is designed to bridge the transition from 200- to 300-mm wafers. The system has three proprietary technologies to ensure acceptable throughput and process capability, the supplier says. NEXT planarization delivers high-yield wafer lots, while Adaptive Planarization Technology is designed to provide post-polish control. In-line metrology capability accommodates both 13- and 25-wafer FOUPs.