Perkin-Elmer Majority Stake in Chip Unit

Perkin-Elmer Corp. sold most of its semiconductor business to a California company Tuesday in a move that should ease concerns about a possible loss of leading-edge computer technology to Japan.

Silicon Valley Group Inc. of San Jose said it will buy more than 60% of the Wilton, Conn.-based business for more than $20 million.

Perkin-Elmer will retain a minority interest and International Business Machines Inc. also will buy a minority stake, officials announced through a telephone conference call with reporters.

IBM also will provide funds to help develop the division’s latest technology and will place large orders with the unit, officials said.

The division produces machines that are used to manufacture computer chips. As such, it is a critical link in the semiconductor industry.

Norwalk-based Perkin-Elmer reportedly had been discussing a possible sale of the division to Nikon Corp. last year. The reports touched off concern that a loss of such vital technology could hamper the ability of American chip makers to compete with Japanese companies.

Perkin-Elmer has refused to comment on speculation about a sale in Japan, but analysts believe that a number of Japanese companies were interested in buying the business when Perkin-Elmer put it up for sale two years ago.

“The real story here is that we’re seeing U.S. companies band together to defend a key technology for future chip development,” said Mark FitzGerald, senior industry analyst with Dataquest of San Jose.

The division makes machines that use optical lithography to etch patterns on computer chips. Its critical technology is called the Micrascan System, a tool that can etch a pattern on smaller wafers with greater sharpness.

The technology still is under development and will not be used in full-scale manufacturing for two to three years, although IBM is using three machines in Essex Junction, Vt., to develop new semiconductors, said company spokesman Paul Bergevin.

FitzGerald said the United States is ahead of the Japanese in developing the technology.

“The Japanese have such an insurmountable lead at this point in time that if this technology went to a Japanese company, the U.S. suppliers would be totally out of leading-edge work” in the semiconductor business, he said.

The deal adds another dimension to SVG’s semiconductor business. The company already makes equipment that prepares wafers for the lithography patterning.

“I can assure you, with the right partners here, we have an excellent chance to be a global supplier and global competitor,” said Papken S. Der Torossian, president and chief executive officer of SVG. The company earned $9.6 million on sales of $130 million last year.

He said his company already has paid $20 million for the business, to be called SVG Lithography Systems Inc. He would not place a total value on the deal but said the financial arrangements would be detailed in a filing with the Securities and Exchange Commission.

FitzGerald said he valued the unit at under $100 million.

IBM will provide an unspecified amount of funds to develop the lithography equipment, along with a chemical compound used to coat the wafer surface for the etching process.

It also has committed to buying “tens of millions of dollars” worth of the new machines, Bergevin said.

Sematech, a consortium of government and industry leaders, also will provide development funding along with technical support.