Veeco Instruments : Semiconductor Devices of Israel Selects Veeco MBE Technology for Production of Infrared Detectors

May 12, 2016

Plainview, N.Y., May 12, 2016 - Veeco Instruments Inc. (Nasdaq: VECO) announced today that SemiConductor Devices (SCD), a leading worldwide supplier of high-end infrared (IR) detectors and laser diodes, has purchased a Veeco GEN200® Molecular Beam Epitaxy (MBE) System to meet the expanding demand for the production of IR detectors.

Headquartered in Haifa, Israel, SCD's advanced concepts and cutting-edge technologies have positioned the company as one of the world's leading sources for high-end infrared components.

'The addition of another Veeco GEN200 MBE System is attributed to our great experience with Veeco production MBE systems and their clear, demonstrated expertise in epitaxial deposition.' said Dr. Eli Weiss, VP of SCD Epitaxial Materials. 'Our capacity expansion using Veeco's superior technology enables us to meet the growing demand for IR detectors based on our patented XBn and T2SL technologies.'

According to Maxtech International, Inc., a market research firm based in Sarasota, Florida, the worldwide market for commercial and dual-use infrared systems is expected to grow at a compound annual growth rate of 10 percent, from $3.2 billion in 2015 to $5.6 billion in 2021. Maxtech International also reports that newer infrared detectors are increasingly being produced with MBE technology.

'We are pleased that SCD, an industry innovator, has selected another Veeco GEN200 MBE system to ramp their production of infrared detectors,' said Gerry Blumenstock, Vice President of Veeco MBE Operations. 'Compared to other MBE Systems, the novel design of the GEN200 provides excellent productivity with superior material quality in growing III/V Antimonide-based wafers for infrared sensors and laser diodes. In addition, the GEN200 has Veeco's patented source technology for difficult-to-evaporate corrosive materials such as antimony.'

About SemiConductor Devices

SemiConductor Devices (SCD) is a leading worldwide supplier of high-end Infrared Detectors and Laser Diodes. Backed by more than 40 years of accumulated experience in development and manufacturing, SCD's products have been chosen by leading companies all over the world, to become the core of their electro-optical systems for all applications. SCD has a vertical R&D, integration and production structure that allows keeping a close control of the products, along the various processes, from the crystal growth to the device packaging and testing. In house capabilities include: Semiconductor processing, LPE and MBE growth, VLSI design, dewar and vacuum technology, assembly and radiometric modeling and testing. To learn more, visit http://www.scd.co.il/

About Veeco

Veeco's process equipment solutions enable the manufacture of LEDs, displays, power electronics, compound semiconductors, hard disk drives, semiconductors, MEMS and wireless chips. We are the leader in MOCVD, MBE, Ion Beam, Wet Etch single wafer processing and other advanced thin film process technologies. Our high performance systems drive innovation in energy efficiency, consumer electronics and network storage and allow our customers to maximize productivity and achieve lower cost of ownership. For information on our company, products and worldwide service and support, please visit www.veeco.com.

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Veeco Media Contact:

Jeffrey Pina 516-677-0200 x1222 jpina@veeco.com