Sept. 3, 2008 - Tegal Corp., a designer and manufacturer of plasma etch and deposition systems, has agree to acquire Alcatel Micro Machining Systems' (AMMS) and Alcatel-Lucent's deep reactive ion etch (DRIE) and plasma-enhanced chemical vapor deposition (PECVD) products and related IP in a $5M in cash-and-stock transaction.

Under the agreement, AMMS will continue to support its existing installed base of DRIE tools in use by MEMS and integrated device manufacturers. Tegal will continue the development of the AMMS DRIE product line, including the integration of the AMMS process modules on its recently-introduced Compact bridge platform and the completion of a 300mm process chamber. In addition, Tegal will assume responsibility for AMMS' joint development programs with key customers, as well as research and academic institutions.

The deal is "an important strategic move for Tegal" to aggressively pursue the large high-growth markets in MEMS and semiconductor device manufacturing, said Thomas Mika, chairman/president/CEO of Tegal, in a statement.

Gilbert Bellini, president of AMMS, who will be appointed to Tegal's board of directors, added that Tegal will particularly target "the rapidly expanding markets for 3D wafer-level packaging applications."