Leuven, Belgium, September 16, 2003 --- The completion of fabrication of 65nm CMOS devices with good electrical performance marks the second milestone within the strategic partnership between Philips and the micro- and nanoelectronics research center IMEC.

Philips Research and IMEC formed a strategic alliance beginning of 2000 to explore the key processing and integration steps in advanced CMOS technologies. Work on the 65nm CMOS technology node began in early 2002 after a successful first step had been made in the joint exploration of the 90nm CMOS technology node.

The 65nm technology is based on a scaled version of planar 90nm bulk CMOS. Devices feature 45nm gate length, equivalent oxide thickness of 14Å, 100nm thick polysilicon gates and sub-20nm junction depths. Gate dielectric recipes were optimized through plasma nitridation of ultra-thin oxides for reduction of gate leakage and suppression of boron penetration. Shallow source/drain engineering was performed using ultra-low energy implantation in combination with germanium pre-amorphization and fluorine co-implantation (PMOST) and fast ramping high-temperature spike anneals. Low-temperature deposition techniques were introduced in the back-end for spacer, salicide blocking and PMD (pre-metal dielectric) layers to avoid excessive dopant diffusion and de-activation. Finally an advanced two-step nickel salicidation was successfully integrated leading to improved control of line width effects as well as reduced junction leakage and contact resistance.

Drive currents of 790µA/µm for NMOST and 355µA/µm for PMOST were obtained at Vdd=1V and an off-state current of 100nA/µm. Devices exhibit good short channel effects control. “The achieved electrical performance, which compares favorably with results from other companies, demonstrates that a successful step has been made in the joint exploration of the 65nm technology at IMEC and Philips Research,” says Dr. Carel van der Poel, Senior Vice President of Philips Research.

“These results again prove the success of our strategic alliance with Philips, through which we have created a larger pool of brainpower at IMEC and merged our complementary competences,” notes Dr. Luc Van den hove, Vice President Silicon Process and Device Technology at IMEC. “In this way, both IMEC and Philips have strengthened their position in state-of-the-art silicon technologies.”

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Notes to editors

About Royal Philips Electronics

Royal Philips Electronics of the Netherlands is one of the world's biggest electronics companies and Europe's largest, with sales of EUR 31.8 billion in 2002. It is a global leader in color television sets, lighting, electric shavers, medical diagnostic imaging and patient monitoring, and one-chip TV products. Its 164,000 employees in more than 60 countries are active in the areas of lighting, consumer electronics, domestic appliances, semiconductors, and medical systems. Philips is quoted on the NYSE (symbol: PHG), London, Frankfurt, Amsterdam and other stock exchanges. News from Philips is located at www.philips.com/newscenter

About IMEC

IMEC (Inter-university MicroElectronics Center) was founded in 1984 and today is Europe’s largest independent research center in the field of microelectronics, nanotechnology, enabling design methods and technologies for ICT systems. IMEC's activities concentrate on the design technology for integrated information and communication systems; silicon process steps and modules, silicon processes; nanotechnology, microsystems, novel devices and packaging; solar cells; and advanced training in microelectronics. IMEC is headquartered in Leuven, Belgium, and has a staff of more than 1250 people including over 380 industrial residents and guest researchers. Its revenue of more than 138Meuro is derived from agreements and contracts with the Flemish government, equipment and material suppliers and semiconductor and system-oriented companies worldwide, the EC, MEDEA+ and ESA. News from IMEC is located at www.imec.be.

For more information:

IMEC contact:                                                   Philips contact:

Katrien Marent                                                   Koen Joosse

Corporate Communication Manager                    Philips Research Public Relations

IMEC, Kapeldreef 75                                         Prof. Holstlaan 4 (WB 22)

B- 3001 Leuven, Belgium                                   5656 AA Eindhoven, The Netherlands

Tel +32 16 28 18 80 Fax +32 16 28 16 37            Tel +31 40 2743703

Email: Katrien.Marent@imec.be             E-mail: koen.joosse@philips.com