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Summary of IC Services Equipment Needs <br /> Backgrinding <br /> Backgrinding is the process by which IC Services takes its customers' silicon wafers and <br /> ids the back of them until the overall thickness is reduced from 0.027 incbes to 0.010 <br /> inches. <br /> IC Services currently has one backgrinder. This backgrinder has been runrdng at full <br /> capacity for the past couple of months and will continue to run at full capacity throughout <br /> next year(as indicated in the chart titled 2001 Backgrinder Capacity). This is not a good <br /> position to be in for a number of rmons. With the backgrinder at full capacity, there Is <br /> no allowance for down time. If the equipment goes down for any reason(material, <br /> equipment or manpower), the lost revenue can not be made up. With only one machine, <br /> if there were a major problem that kept it down for an extended period of time, it would <br /> not ouly cripple IC Services, but also our customers that depend on us to provide that <br /> service_Finally,with the backgritder at full capacity. we can not go after additional <br /> business and grow that aspect of the process <br /> By purchasing a second backgrinder and associated support equipment, TC Service will <br /> be able to nearly double its revenue from this portion of the operations and wiU be able to <br /> hire additioual employees, wbile eliminating the concern that comes with relying on a <br /> single piece of equipment. <br /> Wafer Saw <br /> Wafer saw is the process by which IC Services sin mate the individual Integrated circuits <br /> from the silicon wafer. <br /> IC Services currently has four fully automated wafer saws and one semiautomatic wafer <br /> saw. Thcsr five saws ace currently running quite close to full capacity. Our forecast for <br /> 2001 indicates that we will be out of saw capacity by February Our forecast also <br /> indicates that we will need a second new saw by March, a tbird by July and a fourth by <br /> October. Without the new saws. we will not otdy not be able to grow the business. we <br /> will lose business as curreat customers leave to find suppliers that are capable of growing <br /> with them. <br /> These additional saws, along with the other pieces of equipment listed,will allow IC <br /> Services to grow from a $3 million company in 2000 to a $6 million company in 2001. <br /> Auto Inspection <br /> Auto inspection is the process by which TC Services employs sophisticated automated <br /> inspection equipment to inspect the surface of the integrated circuit for defects that could <br /> cause failures iv subsequent manufacturing processes or in the field <br /> SIN 9000'd 91 -1 OBA-M i We 19:80 00-10-ADN <br />