ASM International (NASDAQ:ASMI and Euronext: ASM) N.V., a leading supplier of equipment and solutions to the semiconductor industry for wafer processing as well as assembly and packaging of integrated circuits, announced today that it is setting up the first wafer processing equipment plant in Singapore this month.

The plant will be located in Yishun, in two buildings with a total available floor area of 150,000 sq ft and 30,000 sq ft of clean room facilities. The plant will have 50 employees by the end of the year. ASMI expects to invest about S$50 million over the next few years on facilities, equipment, manufacturing process development as well as staff training. ASMI aims to reach an annual shipment level of 100 systems from the Singapore plant by the end of 2006.

This is part of ASMI's strategy to strengthen its presence in Asia. This Singapore plant will produce its own parts or source locally and assemble the generic subsystems for vertical diffusion furnaces currently handled by ASMI's local contractors in the Netherlands. It also aims to provide manufacturing support to ASMI's US and Japanese subsidiaries for their wafer processing equipment products. The initial generic vertical furnace identified for transfer for assembly at the new plant is the A412(TM) system. ASMI aims to achieve full production of its generic A412(TM) system in the Singapore plant by the middle of 2005.

The new plant in Singapore will handle many operations locally, including generic assembly, logistics and sourcing. As part of this expansion, ASMI expects to hire about 200 to 300 new people within three years.

Mr Arthur del Prado, CEO of ASMI, said, "Asia is the fastest-developing region in the world for the semiconductor industry, and this plant will give us a strategic presence in the region for both front- and back-end semiconductor manufacturing. As the world leader in back-end equipment supply since 2002, we have been expanding in Asia over the last decade. We intend to leverage this strategic move to further build up our position in this high-growth region. Singapore plays a strategic role in this region, hence our decision to locate our manufacturing hub for wafer processing equipment here. With the excellent infrastructure and skilled workforce, we will be able to serve our customers better and faster through the transfer of advanced technology and high-end manufacturing to Singapore."

Mr Teo Ming Kian, Chairman of the Singapore Economic Development Board (EDB), said, "We are pleased that ASMI is setting up the first wafer processing equipment manufacturing plant in Singapore. This is a major milestone in the development of the front-end equipment manufacturing industry. It adds tremendously to our semiconductor ecosystem. At the same time, it could leverage on the substantial base of suppliers and intellectual capital for its activities. ASMI's decision is a further endorsement of Singapore as a location for advanced manufacturing and a hub to the global market."