SPUTTERING OPERATIONS TABLE 12 KEY ADVANTAGES OF SPUTTERING Radio Frequency (RF) and Direct Current (DC) Diode Sputtering...

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1 CHAPTER ONE: INTRODUCTION... 1 STUDY GOAL AND OBJECTIVES... 1 REASONS FOR DOING THE STUDY... 1 INTENDED AUDIENCE... 1 SCOPE OF REPORT... 2 METHODOLOGY... 2 INFORMATION SOURCES... 2 ANALYST S CREDENTIALS... 3 RELATED BCC REPORTS... 3 BCC ONLINE SERVICES... 3 DISCLAIMER... 4 CHAPTER TWO: SUMMARY... 5 SUMMARY... 5 SUMMARY TABLE VALUE OF GLOBAL PVD INDUSTRY, THROUGH 2016 ($ MILLIONS)... 6 SUMMARY FIGURE GLOBAL VALUE OF THE PVD INDUSTRY, ($ MILLIONS)... 7 CHAPTER THREE: OVERVIEW... 8 PVD DEPOSITION TECHNOLOGY... 9 TABLE 1 THE BASIC PHYSICAL VAPOR DEPOSITION TECHNOLOGIES... 9 CLASSIFICATION OF MATERIALS TABLE 2 TYPICAL MATERIALS DEPOSITED BY PVD AND THEIR KEY PROPERTIES MAJOR APPLICATIONS TABLE 3 LEADING PVD APPLICATIONS CHAPTER FOUR: PVD INDUSTRY STRUCTURE TABLE 4 KEY COMPANIES INVOLVED IN THE GLOBAL PVD BUSINESS TABLE 4 (CONTINUED) TABLE 4 (CONTINUED) TABLE 4 (CONTINUED) INDUSTRY TRENDS ENERGY APPLICATIONS DRIVING PVD SYSTEMS Emerging Technologies CONTINUED PVD EXPANSION IN ASIA ECONOMIC CHANGES CAUSE VARIATIONS IN DEMAND PVD PROCESSES, MATERIALS KEEP UP WITH MARKETS TABLE 5 KEY TECHNICAL AREAS REFLECTING PVD IMPROVEMENTS GLOBAL PVD MANUFACTURING... 19

2 TABLE 6 REGIONAL SHARE OF GLOBAL PVD MANUFACTURING, (%) FIGURE 1 GLOBAL PVD MANUFACTURING BY REGION, (%) GLOBAL CONSUMPTION OF PVD EQUIPMENT TABLE 7 GLOBAL SHARE OF PVD CONSUMPTION, (%) FIGURE 2 GLOBAL PVD CONSUMPTION BY REGION, (%) MARKET SHARES TABLE 8 MARKET SHARES OF GLOBAL PVD MANUFACTURING COMPANIES, 2011 ($ MILLIONS, %) COMPANY PROFILES AJA INTERNATIONAL INC ANGSTROM ENGINEERING APPLIED MATERIALS INC CHA INDUSTRIES DENTON VACUUM U.S.A GALILEO VACUUM SYSTEMS GROUP INTERNATIONAL INDUSTRIES LTD IMPREGLON GROUP INTEVAC INC KDF ELECTRONICS KURT J. LESKER COMPANY LEYBOLD OPTICS GMBH NEXX SYSTEMS INC NOVELLUS SYSTEMS INC OERLIKON BALZERS AND LEYBOLD PENTA TECHNOLOGY CO. LTD RICHTER PRECISION INC SEMICORE EQUIPMENT INC SINOVACUUM TECHNOLOGY LTD SINGULUS TECHNOLOGIES AG SYSTEM CONTROL TECHNOLOGIES ULVAC TECHNOLOGIES INC VEECO INSTRUMENTS INC Veeco Instruments Inc. (Continued) CHAPTER FIVE: PVD TECHNOLOGY THE BASIC PHYSICAL VAPOR DEPOSITION PROCESS THE EVAPORATION PHASE TABLE 9 PVD EVAPORATION SOURCES Key Advantages of Evaporation TABLE 10 KEY ADVANTAGES OF THE PVD EVAPORATION PROCESS Some Limitations of Evaporation TABLE 11 MAJOR LIMITATIONS OF EVAPORATION... 46

3 SPUTTERING OPERATIONS TABLE 12 KEY ADVANTAGES OF SPUTTERING Radio Frequency (RF) and Direct Current (DC) Diode Sputtering Magnetically Enhanced Sputtering Magnetron Sputtering Can Produce High Rates Reactive Sputtering TABLE 13 MAJOR LIMITATIONS OF SPUTTERING ION BEAM ASSISTED DEPOSITION TABLE 14 ADVANTAGES/LIMITATIONS OF THE ION BEAM ASSISTED DEPOSITION PROCESS PULSED LASER DEPOSITION Basic Components TABLE 15 KEY ADVANTAGES OF PULSED LASER DEPOSITION CATHODIC ARC DEPOSITION Key Components TABLE 16 ADVANTAGES AND LIMITATIONS OF THE CATHODIC ARC PROCESS ROLL COATING TABLE 17 BASIC ADVANTAGES OF ROLL COATING PVD EQUIPMENT CONFIGURATIONS CLUSTER TOOLS Technical Advantages TABLE 18 TECHNICAL ADVANTAGES OF CLUSTER TOOLS IN-LINE SYSTEMS Advantages of In-Line Systems TABLE 19 BASIC BENEFITS OF IN-LINE PVD SYSTEMS TECHNOLOGY TRENDS IN PVD NANOTECHNOLOGY OFFERS IMPROVEMENTS PVD Has Had Success with Nanocoatings NANOCOMPOSITES ARE ANOTHER CLASS OF COATINGS TABLE 20 INDUSTRIAL APPLICATIONS OF NANOCOMPOSITES CUSTOM-MADE PVD SYSTEMS Twin Door Metallization Systems for the Automotive Industry LARGE AREA VACUUM COATER FOR TELESCOPE MIRROR ROTATABLE SPUTTER TARGETS FOR LARGE AREA GLASS COATING TABLE 21 APPLICATIONS OF A ROTATABLE SPUTTER TARGET SYSTEM LARGE AREA ROLL-TO-ROLL DEPOSITION TABLE 22 MAJOR APPLICATIONS FOR LARGE AREA ROLL-TO- ROLL DEPOSITION SYSTEMS... 64

4 PERSPECTIVE ON TRADITIONAL AND EVOLVING TECHNOLOGIES INDUSTRY COMPETITIVENESS PATENT ANALYSIS SCOPE OF PATENT ACTIVITY OUR FOCUS ON PATENTS PATENTS BY TECHNICAL SUBJECT TABLE 23 PVD PATENTS BY TECHNICAL CATEGORY, LATE PATENTS BY COMPANY TABLE 24 PVD PATENTS BY COMPANY (TWO OR MORE PATENTS) LATE TABLE 24 (CONTINUED) SAMPLE PATENT ABSTRACTS Resputtering Process for Eliminating Dielectric Damage Method for Magnetron Sputter Deposition Methods and Apparatus for Engineering an Interface Between a Diffusion Barrier Layer and a Seed Layer Physical Vapor Deposition Plasma Reactor with Arcing Suppression Ionized Physical Vapor Deposition (ipvd) Process Ionized Physical Vapor (Continued) CHAPTER SIX: THE PVD MARKET INDUSTRY APPROACH MARKET PERSPECTIVE TABLE 25 ESTIMATED GLOBAL PHYSICAL VAPOR DEPOSITION EQUIPMENT REVENUES AND MARKET SHARE, ($ MILLIONS, SHARE %) FIGURE 3 ESTIMATED GLOBAL PVD EQUIPMENT MARKET SHARE, (%) MARKET ANALYSIS MEASUREMENT OBJECTIVES Measurement Objectives (Continued) CHAPTER SEVEN: PVD IN THE MICROELECTRONICS MARKET PVD IN THE MICROELECTRONICS MARKET WHAT ARE THE BASIC MICROELECTRONIC PRODUCTS? TABLE 26 BASIC MICROELECTRONIC PRODUCTS THAT EMPLOY THE PVD PROCESS PRODUCT CHARACTERISTICS CONTINUE TO CHANGE TABLE 27 CHARACTERISTICS OF INTEGRATED CIRCUITS THE COMPETITIVENESS OF PVD IN MICROELECTRONICS GLOBAL ECONOMIC CONDITIONS STILL IMPACTING PVD... 80

5 TABLE 28 GLOBAL DEMAND FOR SEMICONDUCTORS THROUGH 2011 ($ BILLIONS) Current Consensus on the Technology Industry Growth Should Be Larger Than Planned, Per Most Industry Economists Long Term Look at the Economy and Microelectronic Products TABLE 29 ECONOMIC ASSUMPTIONS FOR THE FUTURE GROWTH OF SEMICONDUCTORS AND PVD EQUIPMENT GLOBAL INDUSTRY SUPPORT FOR MICROELECTRONICS SEMI Globalization Standards How SEMI Serves Its Members TABLE 30 THE PURPOSE OF THE SEMI ORGANIZATION SEMATECH What They Do International Technology Roadmap for Semiconductors (ITRS) The Semiconductor Industry Association TABLE 31 CHALLENGES FACING THE SIA THE EFFECTIVENESS OF PVD TECHNOLOGY The Challenge of Technology GLOBAL ENVIRONMENT TABLE 32 ESTIMATED GLOBAL FABRICATION CAPACITY, 2011 (%) MICROELECTRONICS COMPETITIVE GROWTH FACTORS Global Economy is Current Driving Force for PVD Impact of Market Growth Factors TABLE 33 IMPACT OF MAJOR COMPETITIVE FACTORS ON THE GROWTH OF PVD IN THE MICROELECTRONICS INDUSTRY (%) SEMICONDUCTOR APPLICATIONS TABLE 34 BASIC SEMICONDUCTOR APPLICATIONS DONE BY PVD SEMICONDUCTOR METALLURGY DEPOSITION OF THIN FILMS Gate Dielectrics TABLE 35 DESIRED DIELECTRIC PROPERTIES FOR MICROELECTRONIC PRODUCTS Interconnects Barrier Layers Contacts and Adhesion Layers TYPES OF PVD SYSTEMS TABLE 36 IMPACT ON PVD SYSTEMS BY CHANGES IN SEMICONDUCTOR APPLICATIONS Combined Functions... 96

6 ADVANTAGES OF PVD IN SEMICONDUCTOR FABRICATION TABLE 37 ADVANTAGES OF PVD IN SEMICONDUCTOR FABRICATION PVD System Capabilities for Semiconductors MAJOR MATERIALS USED IN PVD FOR SEMICONDUCTOR PRODUCTS TABLE 38 KEY MATERIALS DEPOSITED BY PVD FOR SEMICONDUCTOR FABRICATION Sputtering Targets New Materials SEMICONDUCTOR MARKET DRIVERS AND TRENDS PVD EQUIPMENT DEMAND TABLE 39 PVD FUNCTIONS VERSUS OTHER TECHNOLOGIES IN SEMICONDUCTOR FABRICATION CMOS Business Model PVD and Industry Growth Trends TABLE 40 GLOBAL GROWTH TREND OF PVD FOR SEMICONDUCTORS, THROUGH 2011 (VALUE AND PERCENTAGE RATIO) OTHER MICROELECTRONIC APPLICATIONS FLAT-PANEL DISPLAYS ELECTRONIC COMPONENTS MEMS Manufacturing Mobile Devices TABLE 41 OVERVIEW OF OTHER MICROELECTRONICS PVD PRODUCTS AND APPLICATIONS ADVANTAGES OF PVD FOR OTHER MICROELECTRONIC APPLICATIONS TABLE 42 ADVANTAGES OF PVD FOR OTHER MICROELECTRONIC PRODUCTS KEY MATERIALS USED IN OTHER MICROELECTRONIC PRODUCTS TABLE 43 KEY MATERIALS USED IN OTHER MICROELECTRONIC PRODUCTS MARKET DRIVERS FOR OTHER MICROELECTRONIC PRODUCTS PVD Demand FORECAST ASSUMPTIONS PVD IN MICROELECTRONICS TABLE 44 FORECAST ASSUMPTIONS PVD GROWTH IN MICROELECTRONICS TABLE 45 PROJECTED GLOBAL GROWTH TREND OF PVD FOR SEMICONDUCTORS, THROUGH FORECAST VALUE OF PVD EQUIPMENT SHIPMENTS

7 TABLE 46 FORECAST VALUE OF GLOBAL SHIPMENTS OF PVD EQUIPMENT FOR MICROELECTRONICS, THROUGH 2016 ($ MILLIONS) FIGURE 4 GLOBAL SHIPMENTS OF PVD EQUIPMENT FOR THE MICROELECTRONICS INDUSTRY, ($ MILLIONS) BCC Sees More Constant Growth Pattern over Five-Year Period FORECAST VALUE OF DEPOSITED PVD MATERIALS Measurement Considerations Sputtering Target Materials TABLE 47 FORECAST--GLOBAL VALUE OF MATERIALS DEPOSITED BY PVD IN MICROELECTRONICS, THROUGH 2016 ($ MILLIONS) FIGURE 5 GLOBAL VALUE OF MATERIALS DEPOSITED BY PVD IN MICROELECTRONICS, ($ MILLIONS) FORECAST VALUE OF PVD SERVICES TABLE 48 VALUE OF GLOBAL PVD DEPOSITION SERVICES FOR THE MICROELECTRONICS INDUSTRY, THROUGH 2016 ($ MILLIONS) CHAPTER EIGHT: PVD IN THE STORAGE MARKET PVD IN THE STORAGE MARKET SAMPLE STORAGE PRODUCTS TABLE 49 COMMON DATA STORAGE PRODUCTS STORAGE IS STILL A GROWING APPLICATION FOR PVD STORAGE INDUSTRY COMPETITIVENESS AN EXAMPLE OF DATA STORAGE ECONOMICS THE COMING OF CLOUD COMPUTING BRINGS STORAGE Cost Is Important to Storage Tape Drives Tape Packaging Storage Developments TABLE 50 ADVANCEMENTS IN DATA STORAGE CONTINUING GLOBAL ECONOMIC PROBLEMS AND DEMAND TABLE 51 GLOBAL DEMAND FOR DATA STORAGE PRODUCTS THROUGH 2011 ($ BILLIONS) Current Storage Industry Outlook Direct Storage Best for Consumer GLOBAL INDUSTRY SUPPORT AND STANDARDS An International Disk Storage Organization TABLE 52 MISSION OF THE IDEMA Where Storage Is Made TABLE 53 GLOBAL STORAGE MANUFACTURING COMPANIES BY REGION, 2011 (%) STANDARDS

8 TABLE 54 REPRESENTATIVE STANDARDS TOPICS DEVELOPMENTS IN PVD TECHNOLOGY STORAGE GROWTH FACTORS Driving Force for PVD Impact of Market Growth Factors TABLE 55 IMPACT OF MAJOR FACTORS ON THE GROWTH OF PVD IN THE DATA STORAGE PRODUCTS MARKET, 2010 (%) STORAGE APPLICATIONS TABLE 56 KEY STORAGE APPLICATIONS BY SUBSTRATE MATERIAL PVD SYSTEM TYPES EMERGING APPLICATIONS Tape Products Have a Long History TABLE 57 HISTORY OF TAPE STORAGE PRODUCTS AND FUNCTION Disk Products Optical Disks Nanofilms ADVANTAGES OF PVD IN THE STORAGE INDUSTRY TABLE 58 MAJOR PLUSES OF PVD FOR STORAGE PRODUCTS Driving More Flash Storage Presents Challenges MAJOR MATERIALS USED IN STORAGE MEDIA TABLE 59 MAJOR MATERIALS DEPOSITED BY PVD FOR THE FABRICATION OF STORAGE DEVICES, STORAGE MARKET DRIVERS AND TRENDS PROJECTED PVD EQUIPMENT DEMAND Growth Trends TABLE 60 GLOBAL GROWTH TREND OF PVD FOR THE DATA STORAGE INDUSTRY, THROUGH 2011 (VALUE AND PERCENTAGE RATIO) FORECAST ASSUMPTIONS PVD GROWTH IN THE STORAGE INDUSTRY TABLE 61 FORECAST ASSUMPTIONS PVD GROWTH IN DATA STORAGE TABLE 62 PROJECTED GLOBAL GROWTH TREND OF PVD FOR DATA STORAGE, THROUGH FORECAST VALUE OF PVD SHIPMENTS TABLE 63 FORECAST VALUE OF GLOBAL PVD SHIPMENTS BY TYPE FOR THE STORAGE PRODUCTS INDUSTRY, THROUGH 2016 ($ MILLIONS) FIGURE 6 GLOBAL VALUE OF PVD EQUIPMENT SHIPMENTS FOR THE DATA STORAGE INDUSTRY, ($ MILLIONS) FORECAST VALUE OF DEPOSITED MATERIALS FOR STORAGE PRODUCTS

9 Measurement Considerations Sputtering Target Materials TABLE 64 FORECAST GLOBAL VALUE OF MATERIALS DEPOSITED BY PVD IN THE STORAGE INDUSTRY, THROUGH 2016 ($ MILLIONS) FIGURE 7 GLOBAL SHIPMENTS OF MATERIALS FOR PVD IN THE STORAGE INDUSTRY, ($ MILLIONS) FORECAST VALUE OF PVD SERVICES TABLE 65 FORECAST VALUE OF GLOBAL PVD SERVICES IN THE DATA STORAGE INDUSTRY, THROUGH 2016 ($ MILLIONS) CHAPTER NINE: PVD IN THE CUTTING TOOL MARKET PVD IN THE CUTTING TOOL MARKET PRODUCT DEFINITION TABLE 66 GENERAL TYPES OF CUTTING TOOLS COATED BY PVD CUTTING TOOL INDUSTRY COMPETITIVENESS IMPACT OF A CONTINUING GLOBAL ECONOMIC CRISIS TABLE 67 GLOBAL DEMAND FOR CUTTING TOOLS, THROUGH 2011 ($ BILLIONS) Industry Reaction CUTTING TOOL ECONOMICS INTERNATIONAL CONDITIONS Changing Market Shares TABLE 68 GLOBAL CUTTING TOOL MARKET BY REGION, (%) TECHNOLOGY CUTTING TOOL GROWTH FACTORS Driving Force for PVD Impact of Market Growth Factors TABLE 69 IMPACT OF MAJOR FACTORS ON THE GROWTH OF PVD IN THE CUTTING TOOL INDUSTRY (%) CUTTING TOOL APPLICATIONS TABLE 70 BASIC CUTTING TOOL PVD APPLICATIONS TYPES OF PVD SYSTEMS PVD Versus CVD Process ADVANTAGES OF PVD IN CUTTING TOOL COATING KEY MATERIALS DEPOSITED ON CUTTING TOOLS TABLE 71 KEY MATERIALS DEPOSITED BY PVD FOR CUTTING TOOL APPLICATIONS NANOCOATINGS PVD COATED CARBIDES CUTTING TOOL MARKET DRIVERS AND TRENDS PVD EQUIPMENT DEMAND Fluctuating Growth Trends

10 TABLE 72 GLOBAL GROWTH TREND OF PVD FOR THE CUTTING TOOL INDUSTRY, THROUGH 2011 (VALUE AND PERCENTAGE RATIO) FORECAST ASSUMPTIONS PVD IN THE CUTTING TOOL INDUSTRY TABLE 73 FORECAST ASSUMPTIONS FOR PVD GROWTH IN CUTTING TOOLS TABLE 74 PROJECTED GLOBAL GROWTH TREND OF PVD FOR THE CUTTING TOOL INDUSTRY, THROUGH FORECAST VALUE OF PVD SHIPMENTS TABLE 75 FORECAST VALUE OF GLOBAL PVD EQUIPMENT FOR THE CUTTING TOOL INDUSTRY, THROUGH 2016 ($ MILLIONS) FIGURE 8 GLOBAL VALUE OF PVD SHIPMENTS FOR THE CUTTING TOOL INDUSTRY, ($ MILLIONS) FORECAST VALUE OF CUTTING TOOL MATERIAL SHIPMENTS Measurement Considerations Sputtering Target Materials TABLE 76 FORECAST-GLOBAL VALUE OF MATERIALS DEPOSITED BY PVD FOR CUTTING TOOL APPLICATIONS, THROUGH 2016 ($ MILLIONS) FIGURE 9 GLOBAL VALUE OF MATERIALS DEPOSITED BY PVD FOR THE CUTTING TOOL INDUSTRY, ($ MILLIONS) FORECAST VALUE OF PVD SERVICES TABLE 77 FORECAST VALUE OF PVD COATING SERVICES IN THE CUTTING TOOL INDUSTRY, THROUGH 2016 ($ MILLIONS) CHAPTER TEN: PVD IN THE SOLAR INDUSTRY PRODUCT DEFINITION THE PHOTOVOLTAIC EFFECT SOLAR THERMAL TECHNOLOGY Our Focus KINDS OF PHOTOVOLTAIC PRODUCTS TABLE 78 BASIC TYPES OF PHOTOVOLTAIC PRODUCTS SOLAR INDUSTRY COMPETITIVENESS ENERGY DEMAND, THE ENVIRONMENT AND COSTS TABLE 79 OVERVIEW OF SOLAR ENERGY STATUS, IMPACT OF CURRENT GLOBAL ECONOMIC CONDITIONS TABLE 80 GLOBAL DEMAND FOR SOLAR CELLS, THROUGH 2011 ($ BILLIONS) Future Expectations GLOBAL RESEARCH AND EDUCATIONAL ACTIVITY IN SOLAR ENERGY North America TABLE 81 MAJOR RESEARCH PROJECTS AT ENREL

11 European Industry Activities Japanese Participation in Solar TABLE 82 WHY THE JAPANESE INVESTED IN PHOTOVOLTAICS Other Asian and Chinese Activities TECHNOLOGY Nanoscale Solar Technology SOLAR INDUSTRY GROWTH FACTORS Driving Force for PVD Impact of Market Growth Factors TABLE 83 IMPACT OF MAJOR FACTORS IN THE GROWTH OF PVD IN THE SOLAR INDUSTRY (%) SOLAR INDUSTRY APPLICATIONS TABLE 84 BASIC PVD SOLAR INDUSTRY APPLICATIONS EMERGING SOLAR APPLICATIONS TABLE 85 EMERGING PVD SOLAR APPLICATIONS Organic Solar Cells More Nanofilms Traditional Materials TYPES OF PVD SYSTEMS ADVANTAGES OF PVD IN SOLAR MANUFACTURING TABLE 86 MAJOR ADVANTAGES OF PVD IN MAKING SOLAR CELLS MAJOR MATERIALS USED IN THE SOLAR INDUSTRY TABLE 87 MAJOR MATERIALS FOR SOLAR APPLICATIONS NEWER MATERIALS SOLAR MARKET DRIVERS AND TRENDS PVD EQUIPMENT DEMAND Solar and PVD Growth Trends TABLE 88 GROWTH TRENDS FOR PVD IN THE SOLAR INDUSTRY, THROUGH 2011 ($ MILLIONS) FORECAST ASSUMPTIONS PVD GROWTH IN THE SOLAR INDUSTRY TABLE 89 FORECAST ASSUMPTIONS FOR PVD GROWTH IN THE SOLAR INDUSTRY TABLE 90 PROJECTED GLOBAL GROWTH TRENDS FOR PVD IN THE SOLAR MARKET, THROUGH FORECAST VALUE OF PVD SHIPMENTS TABLE 91 FORECAST VALUE OF GLOBAL PVD SHIPMENTS FOR THE SOLAR INDUSTRY, THROUGH 2016 ($ MILLIONS) FIGURE 10 GLOBAL SHIPMENTS OF PVD EQUIPMENT FOR USE IN THE SOLAR INDUSTRY, ($ MILLIONS) FORECAST VALUE OF SOLAR MATERIALS Material Market Definition Measurement Considerations

12 TABLE 92 FORECAST GLOBAL VALUE OF MATERIALS DEPOSITED BY PVD FOR THE SOLAR INDUSTRY, THROUGH 2016 ($ MILLIONS) FIGURE 11 GLOBAL VALUE OF PVD SHIPMENTS FOR THE SOLAR INDUSTRY, ($ MILLION) FORECAST VALUE OF PVD SERVICES TABLE 93 FORECAST VALUE OF GLOBAL PVD SERVICES IN THE SOLAR INDUSTRY, THROUGH 2016 ($ MILLIONS) CHAPTER ELEVEN: PVD IN THE OPTICS INDUSTRY PVD IN THE OPTICS INDUSTRY TABLE 94 BASIC TYPES OF OPTICAL PRODUCTS COMPETITIVENESS OF THE OPTICAL INDUSTRY ECONOMIC ENVIRONMENT TABLE 95 ECONOMIC GROWTH FACTORS FOR THE OPTICS INDUSTRY IMPACT OF GLOBAL ECONOMIC CONDITIONS TABLE 96 GLOBAL DEMAND FOR OPTICAL PRODUCTS, THROUGH 2011 ($ BILLIONS) OPTICS INDUSTRY AND GOVERNMENT SUPPORT TECHNOLOGY TABLE 97 KEY TO SUCCESSFUL OPTICAL COATINGS OPTICAL MARKET GROWTH FACTORS Driving Force for PVD Impact on Market Growth Factors TABLE 98 IMPACT OF MAJOR FACTORS IN PVD GROWTH IN THE OPTICS INDUSTRY (%) OPTICS INDUSTRY APPLICATIONS TABLE 99 MOST COMMON OPTICS PVD APPLICATIONS Plastic Lenses Nanocoatings TYPES OF PVD SYSTEMS MATERIALS USED FOR OPTICAL APPLICATIONS TABLE 100 KEY MATERIALS USED FOR OPTICAL COATINGS OPTICAL MARKET DRIVERS AND TRENDS PVD EQUIPMENT DEMAND Changing Growth Trends TABLE 101 GLOBAL GROWTH TREND OF PVD FOR THE OPTICS INDUSTRY, THROUGH FORECAST ASSUMPTIONS PVD IN OPTICS TABLE 102 FORECAST ASSUMPTIONS PVD GROWTH IN THE OPTICS MARKET TABLE 103 PROJECTED GLOBAL GROWTH TREND OF PVD FOR THE OPTICS INDUSTRY, THROUGH FORECAST VALUE OF GLOBAL PVD SHIPMENTS

13 TABLE 104 FORECAST VALUE OF GLOBAL PVD EQUIPMENT SHIPMENTS BY TYPE FOR THE OPTICS INDUSTRY, THROUGH 2016 ($ MILLIONS) FIGURE 12 GLOBAL VALUE OF PVD SHIPMENTS FOR THE OPTICAL INDUSTRY, ($ MILLIONS) FORECAST VALUE OF OPTICAL MATERIAL SHIPMENTS Measurement Considerations Sputtering Target Materials TABLE 105 FORECAST GLOBAL VALUE OF MATERIALS DEPOSITED BY PVD IN THE OPTICS INDUSTRY, THROUGH 2016 ($ MILLIONS) FIGURE 13 GLOBAL VALUE OF MATERIALS DEPOSITED BY PVD IN THE OPTICS INDUSTRY, ($ MILLIONS) FORECAST VALUE OF PVD SERVICES TABLE 106 FORECAST VALUE OF GLOBAL PVD SERVICES IN THE OPTICS INDUSTRY, THROUGH 2016 ($ MILLIONS) CHAPTER TWELVE: PVD IN THE MEDICAL EQUIPMENT MARKET PVD IN THE MEDICAL EQUIPMENT MARKET PRODUCT DEFINITION TABLE 107 BASIC TYPES OF MEDICAL DEVICES MEDICAL INDUSTRY COMPETITIVENESS THE GLOBAL MEDICAL EQUIPMENT BUSINESS TABLE 108 GLOBAL PRODUCTION OF MEDICAL EQUIPMENT AND SUPPLIES BY REGION, (%) GLOBAL ECONOMIC CRISIS TABLE 109 GLOBAL DEMAND FOR MEDICAL PRODUCTS THROUGH 2010 ($ BILLIONS) COST ISSUES TECHNOLOGY MEDICAL MARKET GROWTH FACTORS Driving Force for PVD Impact of Marketing Growth Factors TABLE 110 IMPACT OF MAJOR FACTORS ON THE GROWTH OF PVD IN THE MEDICAL EQUIPMENT INDUSTRY (%) MEDICAL EQUIPMENT APPLICATIONS TABLE 111 OVERVIEW OF MEDICAL EQUIPMENT APPLICATIONS GROWING APPLICATIONS TYPES OF PVD EQUIPMENT MAJOR MATERIALS USED IN THE MEDICAL DEVICE INDUSTRY TABLE 112 MAJOR THIN FILM MATERIALS USED TO MANUFACTURE MEDICAL DEVICES AND EQUIPMENT NANOMATERIALS MARKET DRIVERS AND TRENDS SECOND-PHASE ECONOMIC PROBLEMS

14 GROWTH TRENDS TABLE 113 GLOBAL GROWTH TRENDS OF PVD AND THE MEDICAL EQUIPMENT INDUSTRY, THROUGH 2011 (VALUE AND PERCENTAGE RATIO) FORECAST ASSUMPTIONS FOR PVD IN THE MEDICAL INDUSTRY TABLE 114 FORECAST ASSUMPTIONS FOR PVD GROWTH IN THE MEDICAL EQUIPMENT MARKET TABLE 115 PROJECTED GLOBAL GROWTH TREND OF PVD FOR THE MEDICAL EQUIPMENT MARKET, THROUGH FORECAST VALUE OF PVD EQUIPMENT SHIPMENTS TABLE 116 FORECAST GLOBAL VALUE OF PVD EQUIPMENT SHIPMENTS FOR THE MEDICAL EQUIPMENT INDUSTRY, THROUGH 2016 ($ MILLIONS) FIGURE 14 GLOBAL VALUE OF PVD EQUIPMENT SHIPMENTS FOR THE MEDICAL EQUIPMENT MARKET, ($ MILLIONS) FORECAST VALUE OF PVD MATERIALS Measurement Considerations Sputtering Target Materials TABLE 117 FORECAST GLOBAL VALUE OF MATERIALS DEPOSITED BY PVD IN THE MEDICAL EQUIPMENT MARKET, THROUGH 2016 ($ MILLIONS) FIGURE 15 GLOBAL VALUE OF PVD SHIPMENTS FOR THE MEDICAL EQUIPMENT MARKET, ($ MILLIONS) FORECAST VALUE OF PVD SERVICES TABLE 118 FORECAST VALUE OF WORLDWIDE PVD SERVICES IN THE MEDICAL EQUIPMENT MARKET, THROUGH 2016 ($ MILLIONS) CHAPTER THIRTEEN: PVD IN THE FLEXIBLE PACKAGING MARKET PVD IN THE FLEXIBLE PACKAGING MARKET PRODUCT DEFINITION TABLE 119 REPRESENTATIVE PRODUCTS USING FLEXIBLE PACKAGING PACKAGING INDUSTRY COMPETITIVENESS ECONOMIC CONSIDERATIONS AND THE RECESSION Economic Impact Problems Still Impeding Growth TABLE 120 GLOBAL DEMAND FOR FLEXIBLE PACKAGING, THROUGH 2011 ($ BILLIONS) INTERNATIONAL ACTIVITIES European Activity Increased Asian Activity TABLE 121 POSITIVE FACTORS FOR INTERNATIONAL FLEXIBLE PACKAGING TECHNOLOGY

15 FLEXIBLE PACKAGING MARKET GROWTH FACTORS Driving Force for PVD Impact of Market Growth Factors TABLE 122 IMPACT OF MAJOR GROWTH FACTORS ON PVD FOR FLEXIBLE PACKAGING (%) PACKAGING INDUSTRY APPLICATIONS TRANSPARENT COATINGS TABLE 123 KEY ADVANTAGES OF GLASS COATINGS TABLE 124 OVERVIEW OF FLEXIBLE PACKAGING APPLICATIONS TYPES OF PVD SYSTEMS Web Coating Process ADVANTAGES OF PVD IN FLEXIBLE PACKAGING TABLE 125 ADVANTAGES OF PVD IN FLEXIBLE PACKAGING KEY MATERIALS USED FOR FLEXIBLE PACKAGING NANOMATERIALS TABLE 126 KEY MATERIALS DEPOSITED BY PVD IN FLEXIBLE PACKAGING FLEXIBLE PACKAGING MARKET DRIVERS AND TRENDS PVD EQUIPMENT DEMAND Growth Trends TABLE 127 GLOBAL GROWTH TREND OF PVD FOR THE FLEXIBLE PACKAGING INDUSTRY, THROUGH FORECAST ASSUMPTIONS PVD IN FLEXIBLE PACKAGING TABLE 128 FORECAST ASSUMPTIONS FOR PVD GROWTH IN THE FLEXIBLE PACKAGING MARKET TABLE 129 PROJECTED GLOBAL GROWTH TREND OF PVD FOR THE SPECIALTY PACKAGING MARKET, THROUGH TABLE 130 GLOBAL SHIPMENTS OF PVD EQUIPMENT BY TYPE FOR FLEXIBLE PACKAGING, THROUGH 2016 ($ MILLIONS) FIGURE 16 GLOBAL VALUE OF PVD EQUIPMENT SHIPMENTS FOR THE FLEXIBLE PACKAGING MARKET, ($ MILLIONS) FORECAST VALUE OF FLEXIBLE PACKAGING MATERIALS Measurement Considerations Sputtering Targets TABLE 131 FORECAST GLOBAL VALUE OF MATERIALS DEPOSITED BY PVD IN THE FLEXIBLE PACKAGING INDUSTRY, THROUGH 2016 ($ THOUSANDS) FIGURE 17 GLOBAL VALUE OF MATERIALS DEPOSITED BY PVD IN THE FLEXIBLE PACKAGING INDUSTRY, ($ THOUSANDS) FORECAST VALUE OF PVD SERVICES

16 TABLE 132 FORECAST VALUE OF WORLDWIDE PVD SERVICES IN THE FLEXIBLE PACKAGING INDUSTRY, THROUGH 2016 ($ MILLIONS) CHAPTER FOURTEEN: PVD IN THE INDUSTRIAL MARKET PVD IN THE INDUSTRIAL MARKET PRODUCT DEFINITION TABLE 133 BASIC TYPES OF INDUSTRIAL PRODUCTS INDUSTRIAL MARKET COMPETITIVENESS AUTOMOTIVE MARKET Impact of the Economic Crisis TABLE 134 GLOBAL AUTO PRODUCTION, THROUGH 2011 (UNITS MILLIONS) What s Next? TABLE 135 POSITIVE SIGNS FOR THE AUTO INDUSTRY S FUTURE Technology AEROSPACE MARKET Impact of the Economic Crisis TABLE 136 U.S. AEROSPACE SALES, THROUGH International Market Technology MARKET GROWTH FACTORS FOR INDUSTRIAL PVD Driving Force for PVD Impact of Market Growth Factors TABLE 137 IMPACT OF MAJOR FACTORS ON PVD GROWTH IN THE INDUSTRIAL MARKET (%) KEY INDUSTRIAL APPLICATIONS AUTOMOTIVE AEROSPACE TABLE 138 OVERVIEW OF CURRENT AND EMERGING INDUSTRIAL PVD APPLICATIONS TYPES OF PVD SYSTEMS ADVANTAGES OF PVD IN THE INDUSTRIAL MARKET TABLE 139 ADVANTAGES OF PVD INDUSTRIAL COATINGS KEY INDUSTRIAL COATING MATERIALS TABLE 140 KEY MATERIALS DEPOSITED BY PVD FOR INDUSTRIAL APPLICATIONS INDUSTRIAL MARKET DRIVERS AND TRENDS PVD EQUIPMENT DEMAND Fluctuating Growth Trends TABLE 141 GLOBAL GROWTH TREND OF PVD FOR THE INDUSTRIAL MARKET, THROUGH FORECAST ASSUMPTIONS PVD IN THE INDUSTRIAL MARKET

17 TABLE 142 FORECAST ASSUMPTIONS PVD GROWTH IN THE INDUSTRIAL MARKET TABLE 143 PROJECTED GLOBAL GROWTH TREND OF PVD IN THE INDUSTRIAL MARKET, THROUGH FORECAST VALUE OF PVD EQUIPMENT SHIPMENTS TABLE 144 FORECAST VALUE OF GLOBAL PVD SYSTEMS FOR USE IN THE INDUSTRIAL MARKET, THROUGH 2016 ($ MILLIONS) FIGURE 18 GLOBAL VALUE OF PVD MATERIALS DEPOSITED BY PVD ($ MILLIONS) FORECAST VALUE OF INDUSTRIAL MATERIALS Measurement Considerations Sputtering Targets Nanomaterials TABLE 145 FORECAST GLOBAL VALUE OF MATERIALS DEPOSITED BY PVD IN THE INDUSTRIAL MARKET, THROUGH 2016 ($ MILLIONS) FIGURE 19 GLOBAL VALUE OF MATERIALS DEPOSITED BY PVD FOR THE INDUSTRIAL MARKET, ($ MILLIONS) FORECAST VALUE OF PVD SERVICES TABLE 146 FORECAST VALUE OF GLOBAL PVD SERVICES IN THE INDUSTRIAL MARKET, THROUGH 2016 ($ MILLIONS)

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