IRVINE, Calif., May 23 -- Newport Corp. has entered into a $5-million agreement with Silicon Valley Group (SVG) to produce high performance precision optics to be delivered over the next 12 months. SVG's Lithography Systems will use the optical components to manufacture its Micrascan step-and-scan microlithography systems. As the semiconductor industry looks to create microchips with decreasing feature sizes, there is a need for microlithographic systems capable of submicron operation, according to Robert G. Deuster, chairman and CEO of Newport. We are very pleased to offer customers like SVG specialized precision optical products and systems that will be incorporated in their microlithographic equipment. Newport's acquisition of the West Coast commercial optics operations of Corning OCA broadened our expertise to include advanced thin film coating technologies and specialized precision optics capabilities, said Deuster. We are combining these new competencies with our experience in precision machining, opto-mechanical components, vibration and motion control to develop products for front-end lithography applications in the semiconductor equipment market.