Japan’s Tokyo Electron Ltd. (TEL) has reached a definitive agreement to acquire U.S.-based NEXX Systems Inc. for $206 million.

The acquisition of NEXX will expand TEL’s position in advanced 3D packaging tool technology. NEXX sells electrochemical deposition (ECD) and physical vapor deposition (PVD) systems for 3D TSV and related applications. In these markets, NEXX competes against Applied Materials, Lam Research and others.

Hiroshi Takenaka, president and CEO of TEL, said: “NEXX has demonstrated outstanding advantages in electrochemical deposition, a key differentiating technology in this market. TEL’s strategy to advance wafer level packaging will make use of technical synergies only possible between these two companies and will capitalize on both TEL’s and NEXX’s already profitable core business strengths.”

Tom Walsh, president and CEO of NEXX, added: “By joining the TEL group of companies, NEXX will be able to take major steps along our technology roadmaps to strengthen our competitive positions. Our combination will leverage complementary customer relationships: NEXX provides TEL with an immediate presence in the high growth, back-end packaging arena, while NEXX gains access to front-end growth markets and an unparalleled repository of cutting-edge intellectual property.”

NEXX was founded in 2001 through the acquisition from MKS Instruments of the ASTeX systems group, including the purchase of the Nimbus product line of sputter deposition systems for PVD of thin films. With the acquisition of All-Wet Technologies in 2003, NEXX enhanced its product offering to include electrodeposition technology for metal and photoresist.

The NEXX product family consists of two advanced packaging systems, Stratus and Apollo. The
Stratus, an electrochemical deposition system (ECD), is said to be the first production plating tool with twenty wafer plating positions. Its expertise in copper pillar and lead-free production methods has resulted
in the Stratus being the only tool in the market with dual-sided production plating capabilities.

The Apollo is a physical vapor deposition system. The Apollo can utilize up to five metals in a
single deposition chamber.

Earlier this month, the Oerlikon Group divested its solar unit and will sell it to TEL — a move that puts TEL in direct competition with Applied and others.

Tags: Applied Materials, Lam, NEXX, TEL

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