SEMICON JAPAN, Chiba, Japan, Dec. 5, 2006 -- KLA-Tencor, Inc., today announced that the world's leading wafer suppliers to the semiconductor industry, Shin-Etsu Handotai, Ltd . ( SEH) and SUMCO Corporation ( SUMCO ) , are beta-system partners with KLA-Tencor to apply KLA-Tencor's most advanced unpatterned wafer inspection technology to their 45nm-generation wafers in order to identify and separate the defects of interest. Based on the industry-leading Surfscan SP2 platform, a new, innovative inspection technology will enable the development of defect-free wafers that meet the ever-tightening wafer specifications for device production.

"As chipmaking moves to 45nm, wafer defects that were barely detectable in earlier generations are becoming yield killers, and wafer suppliers must be able to quickly distinguish between defects that can be reworked and those that cause rejection of an entire wafer," said Mike Kirk, group vice president of KLA-Tencor's Wafer Inspection Group. "Working with these two leading wafer manufacturers helps us to create the industry's most advanced wafer inspection technologies."

Virtually every wafer supplier worldwide uses KLA-Tencor's wafer surface inspection systems for quality control. With stringent new substrate specifications demanded by chipmakers, including the elimination of intrinsic defects plus precise control of surface quality, new-generation inspection technology is needed to help wafer manufacturers fine-tune their production processes and maintain quality during manufacturing.

Katsuhiko Miki, General Manager of the SEH Technology and Development Division, said, "Providing defect-free wafers to our customers requires greater quality control with every new chip generation, both to develop more advanced wafer manufacturing processes and to ship superior quality final products. KLA-Tencor's deep expertise in wafer inspection technology makes them a natural partner to help us refine our manufacturing methods."

Etsuro Morita, General Manager of SUMCO Production and Technology Division, said, "Working with KLA-Tencor will help us to move to the next-generation of wafer manufacturing and beyond, where our customers are building nanometer-scale devices on substrates of a higher quality than ever before. KLA-Tencor's inspection and yield knowledge is one of the key elements in overcoming the defect challenges at 45nm and below."

Contact:
Meggan Powers
Director Corporate Communications