Exhibit 99.3
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ETCH PVD NLD
Tegal and Alcatel Micro
Machining Systems (AMMS)
Machining Systems (AMMS)
Conference Call Materials
Tuesday, Sept. 2, 2008
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Safe Harbor Statement on Forward-Looking Statements
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All statements included or incorporated by reference in this presentation, other than statements or characterizations of historical fact, are
forward-looking statements. These forward-looking statements are based on AMMS’ and Tegal’s respective current expectations, estimates
and projections about their respective industry and businesses, respective management's beliefs, and certain assumptions made by AMMS
and Tegal, all of which are subject to change. Forward-looking statements can often be identified by words such as “aims,” "anticipates,"
“becoming,” "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential,"
"continue," "ongoing," “targeted” similar expressions, and variations or negatives of these words. Examples of such forward-looking
statements include, but are not limited to, references to the anticipated benefits to Tegal related to its acquisition of the AMMS business, the
expected market and demand for AMMS products, the expected completion and timing of the transaction, references to the anticipated
benefits to Tegal relating to the transaction, and projected information on market size and compound annual growth rates. These forward-
looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results
to differ materially and adversely from those expressed in any forward-looking statement. All forward-looking statements attributable to us or
persons acting on our behalf are expressly qualified in their entirety by the cautionary statements in this paragraph.
forward-looking statements. These forward-looking statements are based on AMMS’ and Tegal’s respective current expectations, estimates
and projections about their respective industry and businesses, respective management's beliefs, and certain assumptions made by AMMS
and Tegal, all of which are subject to change. Forward-looking statements can often be identified by words such as “aims,” "anticipates,"
“becoming,” "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential,"
"continue," "ongoing," “targeted” similar expressions, and variations or negatives of these words. Examples of such forward-looking
statements include, but are not limited to, references to the anticipated benefits to Tegal related to its acquisition of the AMMS business, the
expected market and demand for AMMS products, the expected completion and timing of the transaction, references to the anticipated
benefits to Tegal relating to the transaction, and projected information on market size and compound annual growth rates. These forward-
looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results
to differ materially and adversely from those expressed in any forward-looking statement. All forward-looking statements attributable to us or
persons acting on our behalf are expressly qualified in their entirety by the cautionary statements in this paragraph.
Important factors that may cause such a difference for Tegal in connection with the acquisition of the AMMS assets include, but are not limited
to:
to:
• the ability of the parties to successfully consummate the transactions contemplated by the asset purchase agreement and related
transaction documents;
transaction documents;
• unexpected variations in market growth and demand for the AMMS products and technologies;
• the risks inherent in acquisitions of technologies and businesses, including the timing and successful completion of technology and
product development through volume production;
product development through volume production;
• integration issues;
• costs and unanticipated expenditures;
• changing relationships with customers, suppliers and strategic partners;
• potential contractual, intellectual property or employment issues;
• the risk that anticipated benefits of the acquisition may not be realized; and
• accounting treatment and charges.
The Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other Securities
and Exchange Commission filings of Tegal discuss other important risk factors that could contribute to such differences or otherwise affect
Tegal’s business, results of operations and financial condition. The forward-looking statements in this presentation speak only as of this date.
Tegal undertakes no obligation to revise or update publicly any forward-looking statement for any reason, except as required by law. All
statements made by or concerning Tegal or AMMS or Alcatel Lucent, respectively, are made solely by such applicable party and such party is
solely responsible for the content of such statements.
and Exchange Commission filings of Tegal discuss other important risk factors that could contribute to such differences or otherwise affect
Tegal’s business, results of operations and financial condition. The forward-looking statements in this presentation speak only as of this date.
Tegal undertakes no obligation to revise or update publicly any forward-looking statement for any reason, except as required by law. All
statements made by or concerning Tegal or AMMS or Alcatel Lucent, respectively, are made solely by such applicable party and such party is
solely responsible for the content of such statements.
Industry and Market Data
We obtained the industry, market and compound annual growth rate data used in this presentation from industry publications and research,
surveys and studies conducted by third parties, in particular Yole Developpement. Industry publications, research, surveys and studies
generally state that they have been obtained from sources believed to be reliable, although they do not guarantee the accuracy or
completeness of such information. While we believe that such publications, research, surveys and studies, in particular those from Yole
Developpement, are reliable, we have not independently verified industry, market and competitive position data from third-party sources.
surveys and studies conducted by third parties, in particular Yole Developpement. Industry publications, research, surveys and studies
generally state that they have been obtained from sources believed to be reliable, although they do not guarantee the accuracy or
completeness of such information. While we believe that such publications, research, surveys and studies, in particular those from Yole
Developpement, are reliable, we have not independently verified industry, market and competitive position data from third-party sources.
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At the beginning of 2008,
AMMS had a worldwide
installed base of more than
200 systems in the United
States, Europe and Asia.
AMMS had a worldwide
installed base of more than
200 systems in the United
States, Europe and Asia.
Alcatel Vacuum Technology France (AVTF)
Alcatel Micro Machining Systems (AMMS)
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Alcatel Micro Machining Systems (AMMS)
• An industry leader in Deep Reactive-Ion Etching (DRIE) and Low
Temperature Plasma-Enhanced Chemical Vapor Deposition
(LTPECVD) systems for the fabrication of MEMS and semiconductor
devices, based in Annecy, France.
Temperature Plasma-Enhanced Chemical Vapor Deposition
(LTPECVD) systems for the fabrication of MEMS and semiconductor
devices, based in Annecy, France.
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Tegal - - AMMS Agreement … Key Elements
US$5 million deal value
$4 million Tegal common stock
$1 million cash
ALU will own approx 14% of Tegal
(post-money)
(post-money)
Restriction on resale for 1 - 3
years, proportionate
years, proportionate
Stock must remain within Alcatel
Group until restrictions expire
Group until restrictions expire
AMMS Transition Team for 6 months
Applications / demo lab support
AMMS to support existing installed base
Rights to appoint board member
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Acquisition of product assets, patents and IP
Trademark License
Mutual Non-compete
Preferred Supplier Agreement with AVP
Agreements with key suppliers and distributors
Selected key employees to join Tegal
Tegal to support new customers and JDPs
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• Acquisition of leading technology, product line and
process capability in large, high growth market
segments
process capability in large, high growth market
segments
• Complimentary and synergistic with current Tegal products
and strengths
and strengths
• Market wants production-worthy solutions - a Tegal
strength
strength
• Opportunity to grow revenues with only incremental
increases in operating expenses
increases in operating expenses
• Expect will add to revenue growth this fiscal year
• Expect will be accretive to earnings early next fiscal year
• Expect payback on investment within 24 months
• Unifies Tegal product and corporate strategy
• All current and acquired Tegal technologies contribute to
integrated process solutions in MEMS, integrated
components and 3D packaging
integrated process solutions in MEMS, integrated
components and 3D packaging
• Etch, PVD, NLD, DRIE, LTPECVD and Compact
Benefits to Tegal
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AMMS Market Position
Source: Yole Developpement
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AMS 100
Deep Silicon Etch
SiO2 and Glass
Low Temperature
PECVD
PECVD
AMS 200
AMS 3200 Cluster
AMS 4200 Cluster
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AMMS Current Products
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MEMS - - inkjet head,
pressure sensors,
accelerometers, gyro-
scopes, microphones,
microactuators, micro-
fluidic devices.
pressure sensors,
accelerometers, gyro-
scopes, microphones,
microactuators, micro-
fluidic devices.
Power Devices - -
widely used in the
industrial, electrical,
telecom and
transportation markets.
widely used in the
industrial, electrical,
telecom and
transportation markets.
3D ICs & Through Silicon Vias
(TSVs) - - interconnects for 3D
MEMS, memory stacking (Flash and
DRAM), logic, RF-SiP and CMOS
image sensors.
(TSVs) - - interconnects for 3D
MEMS, memory stacking (Flash and
DRAM), logic, RF-SiP and CMOS
image sensors.
Courtesy: Samsung Corporation
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What is Deep Reactive-Ion Etching (DRIE)?
• Deep reactive-ion etching (DRIE) is a highly anisotropic etch process used to
create deep, steep-sided holes and trenches in wafers, with aspect ratios of >
20:1.
create deep, steep-sided holes and trenches in wafers, with aspect ratios of >
20:1.
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2008-12 CAGR = 31%
Source: Yole Developpement
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Growth in DRIE Market
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Markets and Technologies… MEMS |
BioMEMS
Inkjet Heads
Inertial Sensors
Silicon Microphones
Pressure Sensors
Rf MEMS
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• MEMS market is moving from niche markets to the mainstream, with standard
processes and significantly higher production volumes.
processes and significantly higher production volumes.
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Power Devices:
• Trench isolation
• Power MOS, IGBTs, Super junction …
Glass Etch
Markets and Technologies… Components |
High Aspect Ratio Silicon Etch
Passive Integration:
• High density capacitors
• Inductors
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TSV for Redistribution:
• Image Sensors
• Interposers
Silicon Via Etch
TSV for Device Stacking:
• Memories (Flash and DRAM)
• Memories, CPU, MEMS…
LT PECVD <150°
SiO2 Contact Opening
Markets and Technologies… 3D Packaging |
• 3D or wafer-level packaging is being driven by consumer applications,
requiring smaller integrated modules and lower costs.
requiring smaller integrated modules and lower costs.
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• Synergistic products
• High growth markets
• Leading technology and market position
• Opportunity to grow business with only
incremental increases in operating
expenses
incremental increases in operating
expenses
• Unified product and corporate strategy
Benefits to Tegal … Summary and Conclusion
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