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Nanometrics' CEO Discusses At Citi 8th Annual US Small/Mid Cap - Conference Call Transcript

To make these devices smaller they also have to add layers in order to make the structures that they want, every new layer is the new measurement opportunity. In addition as they make the devices smaller the tolerance for variation is reduced and so it right they need to make additional measurement they have excel.

So as a result process control measurements have a key metric relationships to -- for the advancement of these devices, as they scale down, which is represented by the orange line, as they scale down on the device structure, they need more measurements and more steps and therefore more tools, so that’s best kind of a underlying driver with high process control. Within our technology space, our flagship product is known as optical critical dimension, it’s an optical technique for making these measurements in a non-destructive way.

And one of the key things that’s happening is that there have been tool, critical dimension measurement have been made since they have been -- all these transistors, but traditional workforce, already now exceed and one of them is the Scanning Electron Microscopy. The Scanning Electron Microscopy has been the industry work force for making critical dimensions. But that electron beam technology in the technology world and OCD is now displacing it, so in upper right hand corner we are showing the relative displacement of CD-SEM by OCD as is market in terms of market penetration.

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