News Release

Applied Materials Teams with Phoenix Silicon to Offer Enhanced 300mm Test Wafer Reclaim Services

Jun 22, 2004 at 12:02 PM EDT

SANTA CLARA, Calif.--(BUSINESS WIRE)--June 22, 2004--Applied Materials, Inc. today announced an agreement with Phoenix Silicon International (PSI) of Hsinchu, Taiwan, to provide enhanced 300mm test wafer reclaim services to semiconductor manufacturers to enable increased fab profitability.

Under the agreement, Applied Materials will be responsible for global sales and marketing of PSI's 300mm wafers, and will also provide new technology and equipment to PSI to meet the advanced wafer requirements of 300mm fabs. PSI will perform the manufacturing operations for the wafer reclaim services.

"Offering 300mm test wafer services is another example of how Applied Materials is working to help customers lower their overall costs on a major budget item," said Dr. David N.K. Wang, executive vice president, Applied Global Services. "We have developed innovative technology for reclaiming wafers that leverages our expertise in polishing and single-wafer cleaning. We expect our relationship with a high volume, quality supplier such as PSI to help us to bring this unique service to customers worldwide."

Dr. Mike Yang, president and chairman of PSI, said, "We are excited to work with Applied Materials in advancing reclaim technology and further enhancing our current high quality product standards. We believe this agreement will provide us with a global infrastructure to expand our customer base and address chipmakers' 300mm fab operational costs."

Phoenix Silicon International Corp. (PSI), established in 1997 in Hsinchu City, Taiwan, provides wafer reclaim services to the semiconductor industry for 150mm, 200mm and 300mm wafers. PSI uses the internationally-recognized ISO 9002 quality system and passed the QS 9000 inspection in 2001. For more information, visit www.psi.com.tw

Applied Materials, Inc. (Nasdaq: AMAT) is the largest supplier of equipment and services to the global semiconductor industry. Applied Materials' web site is www.appliedmaterials.com


    CONTACT: Applied Materials, Inc.
             Betty Newboe, 408-563-0647 (media)
             Paul Bowman, 408-563-1698 (financial community)

    SOURCE: Applied Materials, Inc.