World’s leading Pure Play GaAs Foundry Selects Repeat Etch and Deposition Systems for their Next Phase of Growth

YAVNE, ISRAEL | 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, has received an order, worth approximately US$16M, for multiple etch and deposition systems from WIN Semiconductors Corp. (WIN), the world’s leading provider of pure play GaAs foundry services for the wireless infrastructure and networking markets.  The systems will be used to make Heterojunction Bipolar Transistors (HBT) and Pseudomorphic High Electron Mobility Transistors (pHEMT) devices in WIN’s Fab C, their 3rd and newest fab. The systems will ship in the second half of 2015.

“We are proud to have been a supplier to WIN since their inception in 1999,” said Kevin Crofton, president of SPTS and corporate vice president at Orbotech. “They recently announced their 1 millionth GaAs wafer shipment, and our systems have added value to every one of those wafers.  Over those 16 years, our technology roadmaps have been shaped by leaders such as WIN, and this repeat order confirms that our etch and deposition solutions continue to deliver production advantages to our customers”

Steve Chen, Senior Vice President of WIN commented, “The GaAs device market is entering a phase of growth, driven by the increasing complexity of RF designs inside smartphones and the accompanying infrastructure.  We are successful because we have the flexibility and technology bandwidth to react to the fast changing demands of a consumer driven market, and SPTS has the same mindset.  Sixteen years ago, we selected SPTS to join us in the new world of GaAs foundry services, and today we own approximately 60% of the foundry market share and are opening our 3rd fab.  The support and commitment of SPTS has contributed to that success.  I look forward to entering the next phase of growth with them.”

Virtually all power amplifiers in a modern smartphone are made from circuits built on GaAs semiconductors, and enable handsets to transmit voice and data back to the base station tower.  Power amplifiers (PAs) are one of the most critical RF components and the leading smartphones contain up to 5 PAs.  The increasing complexity in dealing with multiple RF bands from 2G up to 4G, and the uptake of more capable smartphones, are expected to support the market’s continued growth. 

 

About WIN Semiconductors Corp.

WIN Semiconductors is the leading global provider of pure-play GaAs and GaN wafer foundry services for the wireless, infrastructure and networking markets. WIN Semiconductors provides its foundry partners with a diverse portfolio of Hetero-junction Bipolar Transistor and Pseudomorphic High Electron Mobility Transistor technology solutions that support leading edge products for applications from 50 MHz to 100 GHz. Custom products built by WIN Semiconductors Corp. are found in a vast array of markets, including smartphone, mobile infrastructure, optical communications, CATV and automotive applications.

For more than 15 years, WIN has provided foundry services from its state of the art, ISO9001/14001 certified 150mm GaAs facility headquartered in Tao Yuan City, Taiwan. This multi-site manufacturing facility has more than 1600 employees and provides WIN customers with a diverse array of device technology platforms and value added services, including DC/RF product testing, Cu wafer bumping and turn-key package solutions for accelerated product development.

 

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. Today, 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, timing and extent of achieving the anticipated benefits of the acquisition of SPTS; Orbotech's ability to effectively integrate and operate SPTS's business, the timing, terms and success of any strategic or other transaction, 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 each of 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, the timing for a verdict in the ongoing appeal of the criminal matter and ongoing investigation in Korea, the final outcome and impact of this matter, including its 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 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, 2014, 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:

WIN Semiconductor Corp: Shareholders/Investors/Media    ir@winfoundry.com     T: +886-3-3975999

SPTS: Destanie Clarke, Corporate Marketing Director, T:+44 7951 203278. destanie.clarke@orbotech.com

Orbotech: Anat Earon-Heilborn, Director of Investor Relations, Orbotech Ltd, T: +972 8 8942 3582
                  Ann Michael, Senior Corporate Marketing Communications Manager, Orbotech Ltd, T: +972 8 8942 3148  

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.