Intel Invests in SVG; Enters Joint Development Agreement

Intel (Santa Clara, CA) announced today that the company has made a $15 million equity investment in Silicon Valley Group. The two companies will work together on the development of next generation photolithography tools used for manufacturing future Intel microprocessors. Intel will purchase nonvoting preferred stock, convertible into SVG common stock. When converted, the company will own 4.7% of SVG's outstanding stock.

In addition to the equity investment, the companies said they would enter a joint development agreement on SVG's future 157-nanometer lithography technology. Lithography is the process by which microprocessor circuits are imprinted on silicon wafers. While still early in development, advanced lithography tools using SVG's 157-nm technology is expected to allow Intel to extend its use of optical lithography through future generations of microprocessors. Early tools are expected to be available in 2002 and are being designed to extend the ability to print circuits for the 0.10-micron range and beyond.

SVG designs, manufactures and markets equipment used in the primary stages of semiconductor manufacturing. Its products include photoreist processing equipment; oxidation, diffusion and low-pressure chemical vapor deposition processing systems and photolithography exposure tools that use step-can-scan technology.

For more information contact Silicon Valley Group, at 408-441-6700 or Intel, at 503-264-5669.