SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a)
of the Securities Exchange Act of 1934
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Filed by a Party other than the Registrant / /
Check the appropriate box:
/ / Preliminary Proxy Statement
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14a-6(e)(2))
/ / Definitive Proxy Statement
/X/ Definitive Additional Materials
/ / Soliciting Material Pursuant to ss. 240.14a-11 (c) or ss. 240.14a-12
Trikon Technologies, Inc.
- --------------------------------------------------------------------------------
(Name of Registrant as Specified in Its Charter)
- --------------------------------------------------------------------------------
(Name of Person(s) Filing Proxy Statement if other than the Registrant)
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/X/ No fee required
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was paid previously. Identify the previous filing by registration
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<page>
[TRIKON TECHNOLOGIES LOGO]
NASDAQ: TRKN
1 [TRIKON TECHNOLOGIES LOGO]
<page>
Forward-Looking Statements
To the extent that this presentation discusses expectations about market
conditions or about market acceptance and future sales of the Company's
products, or otherwise makes statements about the future, such statements are
forward-looking and are subject to a number of risks and uncertainties that
could cause actual results to differ materially from the statements made. Such
forward looking statements or comments include or relate to, but are not limited
to; Trikon's ability to respond to economic, commercial and technical trends
such as the market acceptance of Trikon's products, management of its cost
structure during a down cycle, its ability to return to profitability, the
resolution of copper/low k integration and devise shrink development efforts at
device companies, development efforts in the field of low k dielectrics, long
implementation periods in the semiconductor, photonics and MEM industries,
acceptance of new products by individual customers and by the marketplace, and
other factors discussed in the Business Description and Management's Discussion
and Analysis sections of the Company's Report on Form 10-K and Annual Report to
Shareholders.
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<page>
Proxy Materials
Trikon filed with SEC a definitive proxy statement relating to the solicitation
of proxies with respect to the 2003 Annual Meeting of Stockholders of Trikon
Technologies, Inc. Investors and stockholders are urged to read the proxy
statement and any other proxy solicitation material (when they become available)
because they will contain important information. Copies of the proxy statement
and other materials are available at the SEC's web site at http://www.sec.gov
and at Trikon's web site http://www.trikon.com.
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<page>
Jihad Kiwan
President and Chief Executive Officer
o 22 years in the semiconductor industry
o Last position was Senior Vice President and General Manager of Amkor
Technology, Inc., Wafer Fabrication Services
o Married 21 years
o Two children, daughter 17 and son 14
o Master's degree in Microelectronics and PhD in Solid State Physics from
Toulouse University, France
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<page>
Investment Merits
o Proven technology for high growth end markets including optical and MEMS
o Technology leadership in the high growth low k/ultra low k dielectrics area
with scaleable model
o Leadership position in front-end process equipment for compound
semiconductors
o Stable, satisfied and growing customer base
o Highly qualified management and personnel
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<page>
Background
o Worldwide supplier of process equipment used in the manufacture of silicon
and compound semiconductors
o TRKN is a NASDAQ-listed corporation
o 35 years of experience manufacturing semiconductor production equipment
o Headquartered in the U.K.
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<page>
Mission Statement
To be a leading global semiconductor
equipment manufacturer by offering
value propositions to silicon and
compound device makers.
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<page>
Research and Development
Total Expenditure
46% Increase in expenditure
[CHART]
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<page>
Our Technology
Metallization
[PHOTO]
o Adds conducting materials
Dielectric Chemical Vapor Deposition
o Adds insulating materials
Etch
[PHOTO]
o Selective removal of materials 0.2 (mu)m Orion
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<page>
Trikon's Products - Metal
[PHOTO - Sigma 300]
[GRAPHIC Sigma fxP]
[PHOTO]
o Ti and Co silicides
o Long throw and ionized liners, barrier, seeds
o MOCVD of TiN and Ti(Si)N
o Sigma fxP: 100 to 200 mm wafers
o Sigma 300: 200 & 300 mm bridge
o ASP: $2.5 million
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<page>
Trikon's Products - DCVD
o Dielectric Deposition
o Planar(R) fxP(TM)
o 100-200mm up to 6 process chambers
o Flowfill(R) gap-fill technology
o Planar(R) 300(TM)
o 200/300mm up to 6 process chambers
o Flowfill(R)/Low-k Flowfill(R) for Al memory
o Orion(R) low-k films for Cu damascene
o Delta(R) 201/fxP(TM)/r4P
o Single chamber or cluster PECVD for III-V and photonics
applications
o ASP range $0.6m -$3.2m
[PHOTO]
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<page>
Trikon's Products - Etch
o Omega(R) 201 o Omega(R) r4P o Omega(R) fxP(TM)
[PHOTO] [PHOTO] [PHOTO]
Production tool R&D/low volume tool Production cluster tool
Single/dual chamber Single chamber Up to 6 chambers
ASP $1M ASP $0.8M ASP $2.5M
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<page>
Product Mix
[PIE CHART]
2001 2002
PVD 50% 46%
Etch 37% 30%
CVD 13% 24%
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<page>
Blue Chip Customer Base
[PHILIPS LOGO] [ANADIGICS LOGO] [BOOKHAM TECHNOLOGY LOGO]
[ST LOGO] [TRIQUINT SEMICONDUCTOR LOGO] [AGILENT TECHNOLOGIES LOGO] [HYNIX LOGO]
[LSI LOGIC LOGO] [INTERNATIONAL RECTIFIER LOGO] [TSMC LOGO]
[INFINEON TECHNOLOGIES LOGO] [TEXAS INSTRUMENTS LOGO]
[MOTOROLA LOGO] [SKYWORKS LOGO] [EPCOS LOGO] [XFAB LOGO]
[BOSCH LOGO] [WIN SEMICONDUCTORS LOGO] [NATIONAL SEMICONDUCTOR LOGO]
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<page>
Infineon Supplier of the Year
[INFINEON TECHNOLOGIES LOGO]
[PHOTO - SUPPLIER OF THE YEAR PLAQUE] o Industry recognition by top
10 device manufacturer
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<page>
Our Geographical Distribution
[MAP]
[PIE CHART]
2001 2002
Europe 52% 64%
USA 36% 33%
Asia/RoW 12% 3%
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<page>
Asia
o Focus on Korea, Taiwan, China and Japan
o Customer expansion
o New accounts in 2002
o Enhanced visibility to Infineon partners: Nanya, Winbond, SMIC
o Visibility through our low k programmes
o Trikon team in Taiwan strengthened in 2002
o Direct sales/service management
o Direct marketing from January 2003
o Signed Hermes Epitek for Taiwan and Asia: largest agent in Taiwan
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<page>
Advanced Silicon
Flowfill(R) Orion(R)
- ----------- --------
o Addresses Al applications o Addresses advanced low k
Copper interconnect needs
o DRAM and Logic
o Only CVD solution with
o Extendable road map to achievable k values of
low k <2.2
o Cost advantages o Addresses <90nm and below
o Flexibility o Orion(R) 2.5 and 2.2 for
65nm and beyond
o New applications e.g.
Shallow trench isolation
(STI)
Metal applications with Sigma and Sigma 300 tools
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<page>
Advanced Silicon (Low k)
[CHART]
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<page>
Interconnect Requirements
Device Speed = f x 1
------------------------
Resistance x Capacitance
------- --------------
/ \
/ \
/ \
/ \
\/ \/
Conductors Insulators
4.0 Tungsten/Aluminium Silicon Dioxide 4.0
2.7 Aluminium FSG 3.5
1.7 Copper Lower k 2.5
Ultra Low k 2.0
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<page>
Low k Market
[CHART]
o Market size downgraded -~$300M reduced to ~$150M for 2003
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<page>
Constellation Concept - Logic
----------------------------------- -----------------------------------
| | | |
| [TEXAS INSTRUMENTS LOGO] | | [UMC LOGO] |
| | | |
| [PHILIPS LOGO] | | [SONY LOGO] [TOSHIBA LOGO] |
| | | |
| [LSI LOGIC LOGO] [ST LOGO] | | [IBM LOGO] |
| | | |
| [TSMC LOGO] | | [INFINEON TECHNOLOGIES LOGO] |
| | | |
| [MOTOROLA LOGO] | | [AMD LOGO] |
| | | |
| | | |
----------------------------------- -----------------------------------
[RENESAS LOGO] [NEC LOGO]
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Constellation Concept - Memory
----------------------------------
| |
| [WINBOND LOGO] |
| |
| [INFINEON TECHNOLOGIES LOGO] |
| |
| [NANYA LOGO] [SMIC LOGO] |
| |
| |
----------------------------------
[ELPIDA LOGO] [SAMSUNG LOGO] [MICRON LOGO] [HYNIX LOGO]
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<page>
Advanced Silicon (Flowfill(R))
2000 LSI announced a 36% speed improvement using low k Flowfill(R) in G12
(0.18(mu)m) and ordered additional systems
2001 2 new 'top-10' customer orders undergo extensive evaluation for DRAM
applications
2002 One of these evaluations completed successfully in Q4 with system
order. Anticipate substantial further orders 2003 and beyond.
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<page>
Advanced Silicon (Orion(R))
o Low k technology leadership with CVD (preferred technology)
o Demonstrated K <2.2. Independently verified by International Sematech
o Protected by IP
o 300mm Orion(R) tool shipped to major Asian foundry Q1 2002
o 300mm Collaboration project with ST Microelectronics (includes AMD,
Motorola and Philips)
o Working with majority of industry leading manufacturers on
Orion(R) sample evaluations
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<page>
Shallow Trench Isolation-STI
[CHART]
o Conventional HDP struggles at <90nm - narrow trenches, higher aspect
ratios
o Transistor damage from device leakage - stress and voids in dielectric
o New gap-fill approach required, new materials being sought
o Flowfill the perfect solution
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<page>
Manufacturing Resources
o Newport, UK
o Internationally convenient - within easy
reach of Heathrow
[PHOTO]
o First class Manufacturing facility = 110,000 sq ft
o Class 1000 Manufacturing area
[PHOTO]
o Class 100 Engineering cleanroom
o Class 10 Demonstration cleanroom
o Purpose-built training suitecleanroom with complete
demonstration machines and computer-based training
systems
o ISO 9000 and 14001 registered
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<page>
Field Customer Support
[GRAPHIC - MAP OF OFFICES]
Regional Centres Local Offices
o USA - CA o Dallas, TX
o Korea o Portland, OR
o UK o New Haven, CT
o Germany o Manchester
o France o Nijmegen
o Taiwan o Migdael Haemek
o Regensburg
o Dresden
o Toulouse
o Ottawa
Distributors
o Fastgate Tech. - Japan
o Idealtech - Taiwan
o Hermes Epitek
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<page>
Management Team
o CEO -Jihad Kiwan - strong sales and marketing focus
o Existing management very experienced in the equipment business
o Strengthen team through the appointment of seasoned sales and
marketing executives
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<page>
Human Resources
Trikon employs 258 people worldwide, of which 1/3 are degree
qualified, including 28 PhDs
Research & Development = 62
Administration = 35
Manufacturing = 62
Customer Support =77
March 2003
Sales & Marketing = 22
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<page>
Board of Directors Structure
Jihad Kiwan President & CEO
Chris Dobson Chairman
Nigel Wheeler Vice Chairman
Dick Conn Business Development Consultant, Prior VP, Sales of
KLA-Tencor
Stephen Wertheimer W Capital Management
Bob Anderson Founder KLA-Tencor,
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<page>
Issues for 2003
o Low k Roadmap delayed
o Strategic placements of low k lead to revenue growth 2004 onwards
o Protect infrastructure for future growth
o Need to generate revenue for 2003
o Need contingency if low k sees further delays
o 10 Step business planning to address short & long term market
segmentation
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<page>
Financials
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<page>
Financial Performance
$ M M
[CHART] [CHART]
Sales Profit before tax
o Sales performance significantly in excess of industry growth (SEMI Data)
o 2000 Trikon 121% [GRAPHIC - ARROW] Industry 87%
o 2001 Trikon decline only 9%, smaller than industry decline
o 2002 effected by under exposure to Asia and wireless telecom decline
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<page>
Financial Highlights ($ Millions)
2000 2001 2002
------------ ------------ ------------
Sales $ 107.0 $ 97.0 $ 32.8
Gross Margin 51.2 45.3 8.3
Operating Expenses 31.0 31.1 30.2
Operating Income 20.2 14.2 (21.9)
Earnings per Share $ 1.42 $ 0.88 $ (1.57)
35 [TRIKON TECHNOLOGIES LOGO]
<page>
Operating Results Q1 2003 ($'M)
Q1, 2003
--------
Sales $ 5.1
Gross Margin 0.8
Research & Development 2.3
Selling, General & Admin 4.8
Operating loss* (6.3)
Net Loss per share $ (0.56)
* Excludes pension settlement
36 [TRIKON TECHNOLOGIES LOGO]
<page>
Operating Model
2000 2001 2002 Goal
---- ---- ---- ----
Revenue 100% 100% 100% 100%
Gross Margin 48% 47% 25% 50%
S,G & A 21% 22% 40% 18%
R&D 8% 10% 33% 12%
EBITDA 23% 20% (46%) 24%
Operating Income 19% 15% (66%) 20%
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<page>
Balance Sheet ($ in Millions)
March
2003
----
Cash $37.7
Working Capital $38.0
Fixed Assets $18.2
Long Term Debt $ 1.4
Shareholders' Equity $53.1
38 [TRIKON TECHNOLOGIES LOGO]
<page>
Future Guidance
o Modest revenue growth in 2003 over 2002 through technology wins
o Flowfill production business
o Power semiconductors
o MEMs and other emerging applications
o Bosch etch order Q2 2003
o Break even EBITDA Q4 2003
o Current plan, anticipating return to profitability calendar 2004
39 [TRIKON TECHNOLOGIES LOGO]
<page>
Investment Merits
o Proven technology for high growth end markets including optical and MEMS
o Technology leadership in the high growth low k/ultra low k dielectrics area
with scaleable model
o Leadership position in front-end process equipment for compound
semiconductors
o Stable, satisfied and growing customer base
o Highly qualified management and personnel
o Demonstrated strong financial performance
40 [TRIKON TECHNOLOGIES LOGO]
<page>
[TRIKON TECHNOLOGIES LOGO]
NASDAQ: TRKN
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