The requirementsfor maskfabrication have increased dramatically with recent advances in lithographic techniques and new i-line, x-ray and deep UV systems. For example, phase shifting masksfor 5x steppers require submicron phase shifters, tight critical dimension control andpattern alignment capabilities. X-ray steppers and other lx technologies require subhalfmicron resolution and even tighter critical dimension control with excellent dimensional linearity. These requirements approach the limit of capabilities of traditional e-beam ,naskfabrication systems.At TRW, a Hitachi HL-700D direct write on wafer e-beam tool has been used in aproduction environment for a half micron CMOS technology. This shaped beam vector scan system is also capa1Ie of mask fabrication. It offers unique maskfabrication capabilities due to the implementation of advanced proximity correction algorithms to maintain submicron dimensional control and line size linearity. The system also supports a 0.10 micron x-barplus three sigma alignment capability. This paper will review a program that has been implemented to evaluate the ultimate resolution and overlay capabilities of the Hitachi system for mask fabrication. Subhalf micron mask resolution will be characterized and explained in terms of proximity correction algorithms. Dfferent chrome etching techniques will be evaluatedfor critical dimensional control. Finally, an analysis ofthe effectiveness of the alignment systemfor phase shifting masks will be presented using applicable test structures.