One of China’s Leading Advanced Packaging Providers Selects SPTS PVD Solution to Expand its 300mm Bumping Capacity

NEWPORT, UK | ORBOTECH LTD. (NASDAQ: ORBK)  today announced that SPTS Technologies, an Orbotech company and a supplier of advanced wafer-processing solutions for the global semiconductor and related industries, received a repeat order for its Sigma fxP 300mm  physical vapor deposition (PVD) solutions from JCAP Corporation (Jiangyin Changdian Advanced Packaging Co., Ltd), a JCET company and a leading Chinese advanced packaging house specializing in wafer-level packaging services to global semiconductor companies. The additional Sigma fxP PVD systems will enable JCAP to more than double the capacity of its flip chip packaging line.

“With the rapidly developing semiconductor industry in China, we have seen increasing investment by domestic packaging companies to add capacity in order to keep pace with demand,” stated Kevin Crofton, President of SPTS Technologies and Corporate Vice President at Orbotech. “JCAP is a leader in bumping services for wafer-level packaging in China and is gearing up for the extra capacity anticipated to be required to meet the needs of its customer base.  Wafer-level packaging is a fast-growing but extremely cost-sensitive activity, so customers appreciate the benefits of our Sigma systems.  They are able to achieve more than 30% cost of ownership savings over traditional PVD because of our unique approach to wafer degassing, high-rate pre-clean, and long intervals between maintenance events.”

Mr. CM. Lai, President of JCAP, stated: “JCAP offers a wide range of bumping solutions to both domestic and global customers.  In order for us to remain competitive in this highly cost-sensitive market, we need to offer the lowest cost solutions without compromising on quality.  SPTS’ 300mm Sigma PVD system and consistently responsive service support team have been key in enabling us to achieve both of these objectives.  To grow our business and be a world-class semiconductor packaging company, we need to work with leading equipment suppliers such as SPTS.  The flexibility to handle both 200mm and 300mm wafer sizes and different materials - without the need for any major hardware changes - made it an easy decision to add more Sigma fxP PVD systems to expand our capabilities.”  

The SPTS 300mm PVD system for bumping applications comprises multi-wafer degas, SE-LTX pre-clean module and PVD modules for depositing Under Bump Metallization (UBM) and Re-Distribution Layer (RDL) layers.  SPTS’ multi-wafer degas module degasses up to 75 wafers in parallel, which allows degas of organic passivation layers at low temperatures without compromising system throughput.  The Sigma PVD system also carries the SE-LTX pre-clean module, which can process more than 5,000 wafers before scheduled maintenance, thereby delivering a low cost of ownership solution for UBM and RDL applications.

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About JCAP (Jiangyin Changdian Advanced Packaging Co., Ltd.)

JCAP, based in Jiangyin, China, is the only factory in the world with a patent to produce copper pillar bumps. JCAP’s major businesses are dedicated to wafer bumping and bump-related back-end services, which includes thin film UBM, electroplated solder, gold bump and ball drop WLCSP. With its majority shareholder being Jiangsu Changdian Electronics Technology Co., Ltd. (JCET), JCAP is a JCET company. For more information, visit www.jcap.cn.


About SPTS Technologies

SPTS Technologies, an Orbotech company, designs, manufactures, sells, and supports etch, PVD, and CVD wafer processing solutions for the MEMS, advanced packaging, LED, high speed RF on GaAs, and power management device markets. With manufacturing facilities in Newport, Wales, and Allentown, Pennsylvania, , the company operates across 19 countries in Europe, North America and Asia-Pacific. For more information about SPTS Technologies, please visit www.spts.com


About Orbotech Ltd.

Orbotech Ltd. (NASDAQ:ORBK) is a global innovator of enabling technologies used in the manufacture of the world’s most sophisticated consumer and industrial products throughout the electronics and adjacent industries. The Company is a leading provider of yield enhancement and production solutions for electronics reading, writing and connecting, used by manufacturers of printed circuit boards, flat panel displays, advanced packaging, micro-electro-mechanical systems and other electronic components. Virtually every electronic device in the world is produced using Orbotech systems. For more information, visit http://www.orbotech.com.

 

Cautionary Statement Regarding Forward-Looking Statements

Except for historical information, the matters discussed in this press release are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995.  These statements relate to, among other things, future prospects, developments and business strategies and involve certain risks and uncertainties.  The words "anticipate," "believe," "could," "will," "plan," "expect" and "would" and similar terms and phrases, including references to assumptions, have been used in this press release to identify forward-looking statements.  These forward-looking statements are made based on management's expectations and beliefs concerning future events affecting Orbotech and are subject to uncertainties and factors relating to Orbotech's operations and business environment, all of which are difficult to predict and many of which are beyond the Company's control.  Many factors could cause the actual results to differ materially from those projected including, without limitation, cyclicality in the industries in which the Company operates, the Company's production capacity, timing and occurrence of product acceptance (the Company defines 'bookings' and 'backlog' as purchase arrangements with customers that are based on mutually agreed terms, which, in some cases for bookings and backlog, may still be subject to completion of written documentation and may be changed or cancelled by the customer, often without penalty), fluctuations in product mix, worldwide economic conditions generally, especially in the industries in which the Company operates, the timing and strength of product and service offerings by the Company and its competitors, changes in business or pricing strategies, changes in the prevailing political and regulatory framework in which the relevant parties operate or in economic or technological trends or conditions, including currency fluctuations, inflation and consumer confidence, on a global, regional or national basis, the level of consumer demand for sophisticated devices such as smartphones, tablets and other electronic devices as well as automobiles, the Company's global operations and its ability to comply with varying legal, regulatory, exchange, tax and customs regimes, the Company's ability to achieve strategic initiatives, including related to its acquisition strategy, the Company's debt and corporate financing activities; the final outcome and impact of the criminal matter and ongoing investigation in Korea , including any impact on existing or future business opportunities in Korea and elsewhere, any civil actions related to the Korean matter brought by third parties, including the Company's customers, which may result in monetary judgments or settlements, expenses associated with the Korean Matter, ongoing or increased hostilities in Israel and the surrounding areas, and other risks detailed in the Company's SEC reports, including the Company's Annual Report on Form 20-F for the year ended December 31, 2015 , and subsequent SEC filings.  The Company assumes no obligation to update the information in this press release to reflect new information, future events or otherwise, except as required by law.

 

COMPANY CONTACTS:

Destanie Clarke

Senior Director of Corporate Marketing

SPTS Technologies Ltd 

Tel: +44 7951 203278

destanie.clarke@orbotech.com

 

Anat Earon-Heilborn

Director of Investor Relations

Orbotech Ltd. 

Tel: +972-8-942-3582

Investor.relations@orbotech.com

 

Tally Kaplan Porat

Head of Corporate Marketing

Orbotech Ltd.

Tel: +972.8.942.3603

Tally-Ka@orbotech.com

 

Cautionary Statement Regarding Forward-Looking Statements

Except for historical information, the matters discussed in this website (including in press releases, webcasts, presentations, posts and other places) are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements relate to, among other things, future prospects, developments and business strategies and involve certain risks and uncertainties. The words “anticipate,” “believe,” “could,” “will,” “plan,” “expect” and “would” and similar terms and phrases, including references to assumptions, have been used in this website to identify forward-looking statements. These forward-looking statements are made based on management’s expectations and beliefs concerning future events as of the date of the applicable information (press releases, webcasts, presentations, or posts) and are subject to uncertainties and factors relating to Orbotech’s operations and business environment, the previously announced acquisition of Orbotech by KLA, the manner in which the parties plan to effect the transaction, including the share repurchase program, the ability to raise additional capital necessary to complete the repurchase program within the time frame expected, the expected benefits, synergies and costs of the transaction, management plans relating to the transaction, the expected timing of the completion of the transaction, the parties’ ability to complete the transaction considering the various closing conditions, including conditions related to regulatory and Orbotech shareholder approvals, the plans, strategies and objectives of management for future operations, product development, product extensions, product integration, complementary product offerings and growth opportunities in certain business areas, the potential future financial impact of the transaction, and any assumptions underlying any of the foregoing. Actual results may differ materially from those referred to in the forward-looking statements due to a number of important factors, including but not limited to the foregoing matters and the possibility that expected benefits of the transaction may not materialize as expected, that the transaction may not be timely completed, if at all, that KLA-Tencor may not be able to successfully integrate the solutions and employees of the two companies or ensure the continued performance or growth of Orbotech’s products or solutions, the risk that the Company may not achieve its revenue and margin expectations within and for 2018 (including, without limitation, due to shifting move-in dates); cyclicality in the industries in which the Company operates, the Company’s supply chain management and production capacity, order cancelation (often without penalty), timing and occurrence of product acceptance (the Company defines ‘bookings’ and ‘backlog’ as purchase arrangements with customers that are based on mutually agreed terms, which, in some cases for bookings and backlog, may still be subject to completion of written documentation and may be changed or cancelled by the customer, often without penalty), fluctuations in product mix within and among divisions, worldwide economic conditions generally, especially in the industries in which the Company operates, the timing and strength of product and service offerings by the Company and its competitors, changes in business or pricing strategies, changes in the prevailing political and regulatory framework in which the relevant parties operate, including as a result of the United Kingdom’s prospective withdrawal from the European Union (known as “Brexit”) and political uncertainty in the United States, or in economic or technological trends or conditions, including currency fluctuations, inflation and consumer confidence, on a global, regional or national basis, the level of consumer demand for sophisticated devices such as smart mobile devices, automotive electronics, flexible applications and devices, augmented reality/virtual reality and wearable devices, high-performance computing, liquid crystal display and organic light emitting diode screens and other sophisticated devices, the Company’s global operations and its ability to comply with varying legal, regulatory, exchange, tax and customs regimes, the timing and outcome of tax audits, including the best judgment tax assessment issued by the Israel Tax Authority with respect to the audit of tax years 2012-2014 in Israel and the related criminal investigation, the Company’s ability to achieve strategic initiatives, including related to its acquisition strategy, the Company’s debt and corporate financing activities; the timing, final outcome and impact of the criminal matter and ongoing investigation in Korea, including any impact on existing or future business opportunities in Korea and elsewhere, any civil actions related to the Korean matter brought by third parties, including the Company’s customers, which may result in monetary judgments or settlements, expenses associated with the Korean matter, and ongoing or increased hostilities in Israel and the surrounding areas.

The foregoing information should be read in connection with the Company’s Annual Report on Form 20-F for the year ended December 31, 2017, and subsequent SEC filings. This information is also supplemented by the information in the applicable document on this website (e.g., press release, webcast, presentation, posts and other document). The Company is subject to the foregoing and other risks detailed in those reports. The Company assumes no obligation to update the information in this website (including press releases, webcasts, presentations, posts and other places) to reflect new information, future events or otherwise, except as required by law.