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In November 2004, KLA-Tencor and Dainippon Screen joined forces to commercialize Blue29’s electroless copper-deposition technology for semiconductor interconnects. The contemporary announcement did not disclose either company’s ownership share or the amount paid.
What the companies joined to commercialize
Blue29 was a Sunnyvale startup focused on depositing copper and copper capping layers for on-chip interconnects. EE Times reported on November 30, 2004, that KLA-Tencor Corp. and Dainippon Screen Manufacturing Co. Ltd. were forming a joint venture to commercialize the technology. EDN’s December 1 account likewise described Blue29 as having developed electroless film-deposition technology for copper interconnects.
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Blue29 had begun as a KLA-Tencor venture-capital investment. The 2004 accounts described it as becoming a joint venture between KLA-Tencor and Dainippon Screen, but did not disclose their respective ownership proportions. They also did not say how much either company paid.
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The stated goal was more reliable copper devices. KLA-Tencor chief executive Ken Schroeder said Blue29’s patented technology had potential to improve copper electromigration and stress migration, which he called “a key ingredient for achieving high reliability in copper devices.” The technology was intended for copper films and capping layers; the contemporary accounts did not provide detailed process specifications or quantified reliability results.
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What each partner contributed
| Partner | Contribution described in the 2004 accounts |
|---|---|
| KLA-Tencor | Thin-film metrology and inspection knowledge, process-integration expertise, customer support, and worldwide sales, distribution, and support. |
| Dainippon Screen | Wet-process tools and factory automation. |
| Blue29 | Electroless film-deposition technology for copper interconnects and capping layers. |
The partnership combined Blue29’s deposition technology with Dainippon’s wet-processing and automation capabilities and KLA-Tencor’s measurement, inspection, integration, and commercialization network.
What was planned—and what the reports do not confirm
EE Times said Blue29 had been founded about two years earlier and reported plans to ship its first beta tools in June 2004, with volume production targeted for 2005. Those were historical expectations, not confirmation that either milestone occurred. The accounts do not establish the eventual shipment or production timeline.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What KLA’s later filings add about the deal
KLA-Tencor’s SEC filing records Blue29 Corporation as an October 2004 acquisition under “Electroless metal deposition.” Its fiscal-2006 annual report says that during fiscal 2005 KLA acquired the remaining equity outstanding of Blue29, which it described as a variable-interest entity. The report also says Blue29’s assets were later transferred to a limited-liability corporation in which a third party acquired a minority interest.
Two reported financial figures should not be mistaken for Blue29’s original purchase price. KLA’s fiscal-2005 disclosure gives approximately $43.5 million as aggregate net cash consideration for three acquisitions in the first half of that fiscal year; it does not assign that total specifically to Blue29. KLA’s fiscal-2006 annual report records $12.6 million in proceeds from the later asset transfer and third-party minority interest. Neither figure establishes what the companies paid for Blue29 in 2004.
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