Document zd28Dk61XR6RGon1jpBjn2LNB

r'.",, * r . .^y^v-v , *X*'' i fl ***** ,,, **/*':~ S p 3 ** '* m** -v e .V \ \\ JC> ^\- Eatcn is a global loader in manufacturing on implintois. a cutxal pi-cco oi Equipment used to fabricate semiconductor chips. Tlio company is now build ing implanters to handle 300 mm wafers 'left), a substantial leap Irom the cum:r.t industry standard of 200 mm. The incieasod wafer sire delivers 2.23 times mere surface area per v. r-.fer. The ichoic aim C;i' right, top) is des.g.ics to position wafers in Eaton ion impianters. which are used by all of tlie world's loading semiconductor manufactuiers. The waler handling aichitoctuie employs parallel processing of multiple wafer batches to maximize through put. and is the fastest system on the market. The irradiator assembly (right page, tep center) helps stabilize photoresist patterns on semiconductor wafers (See caption on inside trout cover). The baffle plate and quartz reaction tube (above) ore part ot the equipment required to remove the p.hotorcs.st mask after etching cf semiconductor wafers as part oI the highly specialized process reo^^l to manufacture integrated circuits. The bell jar (lower right) is the chamber for annealing 330 mm 'wafers ,n the Summit 220 Rapid Ther mal Processor. The waler moves up and down on an elevator inside the bell jar depending cn the precise temperature required. to become more and less risk averse. Poland 1. Acquired a manufacturing operation near Krakow to begin supplying Fiat and other East European customers with automotive engine valves. 2. Began construction on a new plant in Gdansk to manufacture automotive controls. Argentina 1. Acquired 75 percent of the business previously operated by Electro Integral Sudamericana S.A. (EISSA), an Argen tine electrical supplier. The new company will manufacture and distribute Cutler-Hammer electrical equipment. telerating the pace at which we profitably introduce new prod ucts is another pivotal element in our growth strategy. In order to facilitate this effort, research and development spending increased by $52 million or 19 percent in 1997. Research and development spending as measured as a percentage of sales increased on a yearto-year basis from 3.8 percent to 4.2 percent. Within these totals, the amount spent on new product work increased from a little over 10 percent of the total in 1995 to at least 40 percent during the year. Many of Eaton's products, as illustrated with the photographs accom panying this letter, are mainstream industrial components. Two points should be made about these offerings. The first is that growth oppor tunities for these types of products are burgeoning in countries now experiencing rapid industrialization, such as China and 8razil. ij. 1-------------------------------- -