KLA-Tencor and Aprio Technologies to Collaborate on Advanced Mask Design Inspection and Repair Tools
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San Jose, Calif. -- July 25, 2005 -- KLA-Tencor (NASDAQ: KLAC), the leading supplier of process control and yield management solutions for the semiconductor industry, and Aprio Technologies, the technology leader in design for manufacturing (DFM) solutions, today announced their intent to collaborate on the development of an integrated advanced mask design inspection and repair tool. This collaboration signals KLA-Tencor's latest step forward in providing critical yield management solutions for the growing DFM market.

Both companies assert that this partnership will encourage better collaboration between their customers' design and manufacturing teams. As part of this collaboration, Aprio™ will provide new functionality to products under development at KLA-Tencor that address automated mask layout inspection. By leveraging Aprio's successful Halo suite of manufacturing-side optical proximity correction (OPC) and lithography simulation tools, users will be able to quickly and accurately repair local mask layout errors identified by KLA-Tencor's mask layout inspections. Unlike first-generation OPC tools, Halo enables users to reconfigure an OPC design layout to correct problems and achieve optimal results without having to re-run the entire OPC generation from scratch--by allowing designers to reuse OPC information that already exists. As a result, Halo can enable up to 30x faster results in implementing a design change in the mask data.

"Our customers that are moving to the 65-nm process node can no longer afford to wait to find design issues in the manufacturing process," said Harold Lehon, vice president of DFM solutions at KLA-Tencor. "KLA-Tencor and Aprio share similar views on the most optimal way to link the design and manufacturing domains, and we're pleased to be working with an EDA company that is making real inroads into both sides of the tape-out wall."

While many DFM companies first create tools for designers, KLA-Tencor and Aprio both see the greater need to address DFM challenges on the manufacturing side first, since that is the source for most DFM problems. Both also agree on the need to shift from a rules-based handoff procedure to a models-based DFM methodology in order to address the yield impact of shrinking process windows and growing process variability on the design. A models-based approach allows companies to reduce their sampling and target their process control methods to design areas that matter most, reducing the amount of design re-work needed as well as improving yields.

"We are delighted to join forces with KLA-Tencor, the recognized industry leader in reticle inspection technology," said Mike Gianfagna, president and chief executive officer of Aprio Technologies. "Aprio's innovative approach to incremental and hierarchical mask data processing dovetails perfectly with KLA-Tencor's DFM strategy. Our combined efforts will provide a new-to-the-industry capability for our customers."

Initial availability of an integrated product from KLA-Tencor and Aprio is expected in 2006.

About Aprio
Founded in 2003 and headquartered in Santa Clara, Calif., Aprio Technologies Inc. is the technology leader in design-for-manufacturing (DFM) solutions that enable a fast path from design to successful manufacturing. Aprio's products provide the foundation for an integrated DFM platform that eliminates run-time and data volume bottlenecks, and facilitates meaningful collaboration between the semiconductor design and manufacturing disciplines. For more information, visit Aprio's Web site at www.aprio.com or call +1(408) 855-8088.

About KLA-Tencor
KLA-Tencor is the world leader in yield management and process control solutions for semiconductor manufacturing and related industries. Headquartered in San Jose, Calif., the company has sales and service offices around the world. An S&P 500 company, KLA-Tencor was named one of the Best Managed Companies in America for 2005 by Forbes Magazine and is the only company in the semiconductor industry to receive the accolade this year. KLA-Tencor is traded on the Nasdaq National Market under the symbol KLAC. Additional information about the company is available on the Internet at http://www.kla-tencor.com

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