Lithographic equipment for processes with 0.35 jtm design rules is becoming available [11• This technology will be used initially to manufacture memory devices, like 64 MBit DRAMs, and later for logic circuits. One of the critical questions is which imaging technology will be used to define the required small feature size. Exposure wavelength, alternative illumination schemes, and phase shifting mask are under investigation to be applied in 0.35 .tm production. Another question, frequently underestimated, is how to achieve the required overlay requirement of 1 20 nm beiween randoml chosen machines. A general methodology to maintain the matched machine overlay has been reported earlier [2 However, since it is believed that a mix of lithographic tools will be used at 0.35 jim, namely DUV and i-line, the task of multiple machine matching is even more challenging: the overlay has to be maintained beiween two different types of steppers. The lens matching required -also between DUV and i-line lenses -is found to be 70 nm. In this paper we will report on the matched overlay performance of 14 machines, resulting in data from 52 matched random pairs of both DUV and i-line ASML steppers. The matching methodology is optimized to maintain optimum performance beiween random pairs of machines. This includes the use of reference wafers, matching simulation and stepper selection. Furthermore, we investigated different matching mathematics and their influence on matching performance. More specifically, the application of matching simulation, least squares parameter optimization, and minimax parameter optimization are evaluated for their matching performance. We show that the 120 nm overlay requirement can be achieved using multiple machines in a production environment. The paper concludes with a device overlay budget analysis.