VSEA Varian Semiconductor (MM)

Varian Semiconductor Equipment Associates, Inc. (NASDAQ: VSEA) was presented today with a prestigious 2009 Supplier award from Taiwan Semiconductor Manufacturing Corporation (NYSE: TSM). Only six of TSMC's dozens of equipment suppliers were recognized this year for extraordinary efforts during the most difficult period in the history of the industry.

Varian received this award for exemplary support in the ramp of TSMC Fab 12 P4. Specifically, Varian provided fast delivery, high quality and comprehensive technical support for ion implant tools over a 6-month period.

Robert Perlmutter, Varian Semiconductor EVP and TSMC Executive Sponsor, said, "We are honored to have been chosen by TSMC for this prominent award. Receiving this is of particular satisfaction for two reasons. First, we recognize TSMC as a key partner in the development of next generation device technology. This award further cements our already strong relationship. Second, we've received this award for a ramp up that occurred on the heels of a major industry downturn. The fact that we were able to accelerate our operations quickly without error is a powerful testimony to the dedication and passion of our employees."

TSMC Sr. V.P. Steve Tso added, "Varian is one of our best suppliers. We have always been able to rely on them when we've needed them the most. Varian's ability to deliver implant tools and process technology has helped drive TSMC success today and, we believe, into the future."

Varian received this award on December 4th in Taiwan at a special ceremony honoring TSMC's top suppliers. Robert Perlmutter personally accepted this award on behalf of all of Varian's employees.

About Varian Semiconductor

Varian Semiconductor Equipment Associates, Inc. ("Varian Semiconductor") is the leading supplier of ion implantation equipment used in the fabrication of semiconductor chips. Varian Semiconductor's products are used by microchip manufacturers worldwide to produce high-performance semiconductor devices. Customers have made Varian Semiconductor the market leader in ion implant because of its architecturally superior products that improve device performance and yield, lower costs and improve productivity.

Varian Semiconductor provides its customers support, training, and after-market products and services to increase yield, obtain high tool utilization and productivity, reduce operating costs, and extend tool capability for future technology requirements. The Company has ranked #1 in the VLSI Research Customer Satisfaction Survey 12 times over the last 13 years. Varian Semiconductor operates globally and is headquartered in Gloucester, Massachusetts. More information can be found on Varian Semiconductor's web site at www.vsea.com.

About Taiwan Semiconductor Manufacturing Corporation

Established in 1987, TSMC is the world's largest dedicated semiconductor foundry. As the founder and leader of the dedicated foundry business, TSMC has built its reputation on offering advanced wafer production processes and unparalleled manufacturing efficiency. From its inception, TSMC has consistently offered the foundry segment's leading technologies and TSMC COMPATIBLE design services to its customers. The company's total managed capacity exceeds 8 million 8-inch equivalent wafers in 2007, while its revenues represent some 50% of the dedicated foundry segment in the semiconductor industry.

Note: This press release contains forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. For this purpose, statements concerning the industry outlook, expected product plans, market conditions, Varian Semiconductor's expected product or company performance, and investment in new product and application development, and any statements using the terms "believes," "anticipates," "will," "expects," "plans" or similar expressions, are forward-looking statements. The forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: volatility in the semiconductor equipment industry; intense competition in the semiconductor equipment industry; Varian Semiconductor's dependence on a small number of customers; fluctuations in Varian Semiconductor's quarterly operating results; Varian Semiconductor's transition to new products; Varian Semiconductor's exposure to risks of operating internationally; uncertain protection of Varian Semiconductor's patent and other proprietary rights; Varian Semiconductor's reliance on a limited group of suppliers; Varian Semiconductor's ability to manage potential growth, decline and strategic transactions; Varian Semiconductor's reliance on one primary manufacturing facility; and Varian Semiconductor's dependence on certain key personnel. These and other important risk factors that may affect actual results are discussed in detail under the caption "Risk Factors" in Varian Semiconductor's Quarterly Report on Form 10-Q for the quarter ended July 3, 2009 and in other reports filed by Varian Semiconductor with the Securities and Exchange Commission. Varian Semiconductor cannot guarantee any future results, levels of activity, performance or achievement. Varian Semiconductor undertakes no obligation to update any of the forward-looking statements after the date of this release.

Contacts: Bob Halliday Executive Vice President and Chief Financial Officer 978.282.7597 or Tom Baker Vice President, Finance 978.282.2301