North Billerica, Massachusetts, June 25, 2013 -- Newport Corporation (NASDAQ: NEWP) announced today that they have entered into a joint development agreement with International Business Machines Corporation (NYSE: IBM), to collaborate on the development of automated systems and processes for thermo compression bonding that will enable new methods of assembling semiconductor devices utilizing advanced electronics packaging technologies (including 2.5D/3D).

Under the agreement, Newport's MRSI business unit will, with IBM Microelectronics, jointly develop optimal tool designs and process requirements for achieving successful (defect free) bonding conditions. The companies will jointly develop prototype tooling and processes for fluxless thermo compression bonding of flip chip die, as well as capillary underfill dispensing.

Newport's MRSI unit, located in North Billerica, Massachusetts, is a leading supplier of high-performance, high-accuracy die bonding and dispensing systems to the microelectronics industry. MRSI is now applying its deep expertise in these areas to address the significant technological challenges of sub-3 micron thermo compression bonding of 2.5D and 3D devices.

"The increasing complexity and decreasing feature sizes of advanced semiconductor devices present significant challenges in the packaging process," said Larry Parson, Senior Vice President and General Manager of Newport's Optics Group. "IBM has been a technology leader at the forefront of this emerging market, and has developed deep process expertise in thermo compression bonding techniques, while Newport-MRSI has been a leader in high precision die bonding and dispensing technology. By entering into this joint development program, we will be able to develop advanced automated systems and processes to meet the cost, performance and form factor needs of the 2.5D/3D assembly market much more quickly and effectively than working separately."

The work will be conducted both at Newport MRSI's facility in North Billerica, Massachusetts and at IBM's state-of-the-art Semiconductor Research and Development Center in East Fishkill, N.Y.