Exhibit
99.2
Tegal Acquires Alcatel Micro
Machining Systems (AMMS) Q&A Document
Tegal has
agreed to acquire AMMS’ Deep Reactive Ion Etch (DRIE) and Plasma Enhanced
Chemical Vapor Deposition (PECVD) process equipment product lines, and related
intellectual property. These assets will support our efforts in
providing advanced solutions for 3-D packaging and MEMS
applications.
The
agreement calls for the continued support by AMMS of the existing installed base
of DRIE tools used by companies producing MEMS devices and modules /packages
with integrated components. Tegal will continue development of the AMMS DRIE
product line, including the integration of DRIE process modules on our
recently-introduced Compact™ bridge platform and completion of a 300mm DRIE
process chamber. In addition, Tegal will assume responsibility for AMMS’ joint
development programs with key customers, research and academic
institutions.
Why
is Tegal acquiring AMMS?
According
to Yole Developpement, AMMS was among the top 3 suppliers of DRIE process
equipment [for the year ended December 31, 2007]. DRIE is industry’s
process-of-choice and a critical enabler of:
1.
|
The
cost effective and reliable manufacture of MEMS
devices
|
2.
|
Through-Silicon
Via (TSV) technology for advanced 3D packaging
applications.
|
Tegal has
been looking for an opportunity to acquire DRIE technology for over two years,
driven largely by customer requests for Tegal to enter this field, especially
those MEMS customers to whom Tegal has sold its current etch and PVD
systems.
DRIE
represents a key piece of the puzzle that unifies Tegal’s product and corporate
strategy to become a leading provider of process equipment and solutions to the
MEMS, component integration and 3D packaging markets. With the
addition of DRIE technology, all of Tegal’s technologies combined (new materials
etch, PVD and NLD) will play a significant role in Tegal’s development of
integrated solutions for the 3D packaging market.
Why
DRIE?
DRIE
technology is used in MEMS and advanced 3D packaging. These markets
are key areas of focus for Tegal’s customers and a critical part of our growth
strategy. Acquiring DRIE capability was initially a customer-driven event. Tegal
already participates in the MEMS and component integration markets with our new
materials etch and PVD systems, and DRIE represents an important complementary
technology. Customers in these areas have asked us to supply DRIE tools, mainly
because of our reputation for developing advanced processes and
production-worthy tools.
Importantly,
DRIE looked attractive because it is uniquely positioned in an area where the
technology for addressing these high-growth markets is largely in the hands of
smaller companies. By adding DRIE capability to our strong portfolio, Tegal is
well-positioned for growth in these markets.
How
does this acquisition fit in with your ongoing business strategy?
It is
integral to Tegal’s strategy going forward. The addition of DRIE capability
unifies our product strategy by allowing us to focus our development efforts on
well-defined, existing markets. AMMS is a market and technology
leader, so the addition of their DRIE product line represents an opportunity to
elevate Tegal’s size and importance within the industry.
What
are the plans for the technology going forward?
First, we
want our customers to understand that Tegal will continue to offer the existing
AMMS products. In terms of development, our priority will be to port the current
DRIE process module to our new Compact platform and to bring
to market a 300mm process chamber which was already under development at AMMS.
The new 300mm DRIE process module will then be deployed on the
Compact.
How
does this deal impact your revenues for 2008 and beyond?
Tegal
does not provide guidance. However, we expect the AMMS acquisition to
have a positive impact on revenues in the current fiscal year.
How
will the AMMS acquisition affect Tegal’s current head count?
As of
June 30, 2008, Tegal’s headcount was 78. Following the acquisition, Tegal will
be supported by a transition team of 6 persons from AMMS in Annecy, France, for
a period of 6 months. The company expects to transfer approximately 6
individuals to Tegal within the next 2 - 3 months. In total, Tegal expects to
add 6 – 10 people in various positions over a period of several
months.
What
is the manufacturing model for Tegal, and will the AMMS acquisition change
this?
Although
Tegal will continue to outsource some critical components, the company’s model
is to bring as much of the assembly and final testing of systems into our
Petaluma facility. The AMMS transaction will not change this model.
Will
any additional resources be required to integrate the AMMS products and build a
product development and sales / service structure?
The
people joining Tegal include individuals in applications, new product
development, product management and sales. In addition, we intend to add
resources to strengthen our activities in manufacturing, final test, engineering
and tech support. Currently, Tegal’s field service operation is
sufficient to cover new customers, and we have the option of sub-contracting
that activity to AMMS, where needed.
Tegal Corporation 2201 S.
McDowell Blvd. Petaluma, CA 94954 [T] (707)
763-5600 [F] (707) 765-9311