This report provides business and technical information on sputter targets as used for semiconductor devices.  Also included is information on supply chain / availability issues.  Market forecasts and market share statistics are provided.

TABLE OF CONTENTS

1  HIGHLIGHTS
   1.1  Sputtering Target Market . 6
   1.2  Supply Issues . 8
   1.3  Technical Trends and Issues  9

2  INTRODUCTION  

3  SPUTTERING TARGET MARKET

4  SUPPLIER STATUS  
   4.1  Honeywell Electronics Materials (HEM)  14
   4.2  JX Nikko Mining & Metals (previously Nikko Materials)  16
   4.3  Praxair-MRC . 18
   4.4  Tosoh SMD . 20

5  PURE MATERIAL SUPPLIERS / REFINERS OF ORE
   5.1  Metal Purity  22

6  METAL ORE SUPPLIERS  

7  TANTALUM SOURCE AND SUPPLY
   7.1  Tantalum Powder Supply Issues History/Background . 24
   7.2  Tantalum Ore . 26
   7.3  Tantalum Plate suppliers 27
   7.4  Tantalum Sputtering Target Market  27

8  TITANIUM SOURCE AND SUPPLY  
   8.1  Titanium Consumption by Application . 30

9  TUNGSTEN SOURCE AND SUPPLY

10  COPPER SUPPLY ISSUES  

11  RUTHENIUM SUPPLY AND DEMAND  

12  RECYCLING

13  TECHNICAL TRENDS AND ISSUES  
    13.1 Barrier Technology for Copper Wiring . 39
    13.2 Ruthenium . 40
    13.3 Silicides: Cobalt Silicide and Nickel Alloy Silicides . 41
    13.4 Silicides: Nickel Silicide  42

14  FUTURE MARKETS -- SOLAR CELLS AND THIN FILM TRANSISTORS   

APPENDIX A: CHINA'S GROWING INFLUENCE ON THE METALS MARKETS  46

APPENDIX B: TANTALUM APPLICATIONS  48

APPENDIX C: ALUMINUM TARGET MANUFACTURING FLOW . 50

APPENDIX D: TITANIUM TUNGSTEN (TI­W) TARGET MANUFACTURING FLOW . 51

APPENDIX E: TITANIUM TARGET MANUFACTURING FLOW  52

APPENDIX F: PROCESS FLOW FOR PURIFYING TITANIUM . 53

APPENDIX G: PROCESS FLOW FOR PURIFYING TANTALUM . 54

APPENDIX H: TANTALUM SHORTAGE OF 2000  55

APPENDIX I: 2006/2007 TECHNICAL TRENDS . 56

LIST OF FIGURES

Figure 1: Sputter Target Revenues for ICs, History and Forecast  7

Figure 2: Sputtering Target Supply Chain  10

Figure 3: Sputtering Target Revenues History and Forecast  11

Figure 4: 2010 and 2015 Semiconductor Sputtering Target Type as a
           Percentage of Worldwide Revenue . 12

Figure 6: 2010 Estimated Worldwide Revenue by Region . 13

Figure 7: Praxair AdvanTageTM Tantalum Targets - Uniform Microstructure . 19

Figure 8: Tantalum Supply Chain . 24

Figure 9: Worldwide Tantalum Ore Mines 2000 and 2010 Estimate
           Source USGS  26

Figure 12: Tantalum Sputtering Target Revenues and Forecast  28

Figure 13: Titanium Sponge Production Capacity by Country 2008 & 2012
           Source USGS  29

Figure 14: Titanium Supply Chain -- Ore to Targets. 29

Figure 15: Tungsten Mining by Percentage of Worldwide Production . 32

Figure 17: Copper Ore Mining Production 2010 33

Figure 18: China's Net Import of Copper 2005-09  34

Figure 19: The Rising Price of Copper . 35

Figure 20: Ruthenium Pricing End of 2009  37

Figure 21: Precious Metals (Ruthenium) Mining Production (from USGS) . 37

Figure 22: Ruthenium Sputtering Target Supply Chain . 38

Figure B1: 2005/06 Tantalum Applications as a Percent of Total Volume by
           Weight.  48

Figure I1: Comparison of Traditional vs. ECAE Target Surface Roughness 56

LIST OF TABLES

Table 1: HEM -- Manufacturing sites  16

Table 2: Alta Group of HEM (Honeywell) -- Manufacturing sites 16

Table 3: Nippon Mining & Metals Group -- Manufacturing Sites  18

Table 4: Praxair-MRC -- Manufacturing Sites . 20

Table 5: Tosoh SMD Manufacturing Sites  21

Table 6: Pure Material Suppliers . 21

Table 7: Metal Purities Currently Available  22

Table 8: Ta Mine Production (metric tons) 2008 to 2011 Estimate. 25

Table 9: Growing Titanium Content in Newer Planes  31

Table A1: The Five Stages of Industrialization . 47