SANTA CLARA, Calif. — January 18, 2005 — Advantest Corporation (TSE: 6857, NYSE: ATE), the world’s largest supplier of semiconductor test equipment, today announced significant market-share achievements for the first half of calendar year 2004.  According to recent statistics from VLSI Research Inc, Advantest doubled its share of the system-on-chip (SoC) automated test equipment (ATE) market, gaining the number-two slot in this sector.  At the same time, the company increased its longtime market-share leadership in ATE for memory ICs and achieved significant gains in the material-handling sector.

As stated in the VLSI Research “1H 2004 Chip Equipment Market Share Summary,” released November 30, 2004, Advantest surpassed key competitors to secure a 23.3-percent share of the SoC test systems market category—more than double the company’s share of this fast-growing market in the first half of calendar 2002.  According to Advantest, this dramatic rise is directly related to the September 2003 introduction of the company’s T2000 SoC test platform, based on the OPENSTAR® standard published by the Semiconductor Test Consortium (STC).

For the first half of calendar 2004, Advantest also ranked as the leading supplier within the memory IC test-systems sector, increasing a dominant 71.3-percent market share.  VLSI Research’s most recent data reveals more than a 10-percent jump in Advantest’s market share compared to the second half of calendar 2003, and a 25-percent share increase compared to the same period in 2002. 

VLSI Research’s market-share data further shows that Advantest ranked as the number-one supplier in pick-and-place handlers for the first half of the year, securing 45-percent market share.  This share is at least double that held by the next closest competitor.  Advantest pioneered integrated ATE and handling technology—an innovation that has contributed to its gains in this sector.

“Advantest made extraordinary advancements in several key markets during the first half of 2004,” said G. Dan Hutcheson, VLSI Research’s CEO.  “Already the worldwide leader in memory test systems, the company has further solidified its dominance in this market while continuing to gain share from its competitors in the SoC arena.  It’s evident that the rapidly growing adoption of the company’s T2000 OPENSTAR-compliant platform has helped Advantest emerge as one of the strongest players in the SoC market.  This development represents another milestone for Advantest.”

R. Keith Lee, president and CEO of Advantest America, Inc., noted that the recent results illustrate the success of the company’s efforts to strategically expand its reach in new markets.  “We are very pleased with the market-share improvements attributed to Advantest by VLSI Research—particularly our growing leadership in the SoC market,” Lee noted.  “Advantest will continue to exhibit strong leadership in our served markets through ongoing innovation that yields the high-value, cost-effective test solutions our customers demand.”

About Advantest
Advantest Corporation is the world’s leading automatic test equipment supplier to the semiconductor industry, and also produces electronic and optoelectronic instruments and systems.  A global company, Advantest has long offered total ATE solutions, and serves the industry in every component of semiconductor test: tester, handler, mechanical and electrical interfaces, and software.  Its SoC, logic, memory, mixed-signal and RF testers and device handlers are integrated into the most advanced semiconductor fabrication lines in the world.  Founded in Tokyo in 1954, Advantest established its North American subsidiary in 1982.  Advantest America, Inc. and Advantest America R&D Center, Inc. are based in Santa Clara, Calif.  More information is available at www.advantest.com