Applied Materials' Total Support Package Helps Maximize Wafer Outs and Reduce Costs at Lucent Technologies
Applied Materials, Inc. reported that its Total Support Package (TSP) program has successfully improved the performance and cost of maintaining Applied Materials' wafer fabrication equipment at Lucent Technologies. Lucent, the world leader in communications semiconductors, is one of the first companies to utilize Applied Materials' TSP program. The Total Support Package is part of a new line of Total Service Solutions (TSS) service products from Applied Materials that provides customers with a guaranteed way to lower their overall operating costs and increase system productivity for Applied Materials equipment in their fabs.
Having Applied Materials manage all the maintenance and spare parts of its systems has enabled Lucent to maximize wafer outs and improve cost efficiencies. The TSP program also allows Lucent to focus resources more on the manufacturing expertise needed to support its rapid, profitable growth. Since implementing this program, Lucent has been able to directly correlate maintenance costs with wafer starts, an advantage not possible with fixed-cost service contracts where cost per wafer rises if tools are not fully utilized.
Lucent has implemented the TSP program on Applied Materials' PVD (physical vapor deposition), HTF (high temperature films) and HDP-CVD (high-density plasma-chemical vapor deposition) tools. Lucent is one of eight customers who have successfully introduced the TSP program. These customers have recognized improved tool utilization of up to 15 percent, with typically 15-30 percent lower operating cost in their fab sites in the U.S., Asia and Europe. With the TSP program, Applied Materials has set a new standard for service support in the semiconductor industry.
"The success of the TSP program at Lucent demonstrates how comprehensive supplier-based service and support can contribute to customer productivity and profitability," said Vinod Mahendroo, president of Applied Materials' Installed Base Support Services. "This program also strengthens Applied Materials' relationships with customers by increasing value and satisfaction with our products. We will continue to leverage our world-class global service and spares infrastructure to offer customers support solutions that make their success a top priority."
Under the TSP program, Applied Materials' expert service teams focus on continuously improving system performance while eliminating the need for customers to carry service-related parts inventory for their Applied Materials equipment. The package covers all system maintenance requirements, including wet cleans and consumable and non-consumable parts needed for an Applied Materials system. An innovative pricing structure based on tool wafer passes creates alignment between Applied Materials and the customers' service needs and production goals. The coordinated implementation of these capabilities provides TSP customers with increased system performance levels and a guaranteed cost-per-wafer pass that decreases over time.
Total Service Solutions consists of two initial products, the Total Support Package and the Total Parts Management (TPM) programs. With TPM, Applied Materials will completely own and manage spare parts for all its equipment used in a fab to provide significant reductions in inventory and administrative costs to its customers.
Lucent Technologies designs, builds and delivers a wide range of public and private networks, communications systems and software, data networking systems, business telephone systems and microelectronics components. Bell Laboratories is the research and development arm for the company. For more information on Lucent Technologies, headquartered in Murray Hill, N.J., USA, visit its Web site at www.lucent.com.
Lucent's Microelectronics Group designs and manufactures integrated circuits and optoelectronic components for the computer and communications industries. More information about the Microelectronics Group is available from its Web site at www.lucent.com/micro.
Applied Materials, Inc. is a Fortune 500 global growth company and the world's largest supplier of wafer fabrication systems and services to the global semiconductor industry. Applied Materials' web site is www.appliedmaterials.com.