The use of phase shifting masks (PSMs) causes revolutionary improvements of the performance of existing wafer steppers. Nowadays the attenuated PSM, also referred to as halftone, is found to be most attractive, as the technique is self-aligned. Moreover, the number of additional process steps in mask fabrication is limited to a dry etching step. Typically, both focus and exposure latitudes for contact holes of 0.35 μm are improved by a factor of 1.5–2 over a conventional mask. As linewidths on mask shrink towards 1 μm (a critical dimension of 0.25 μm, at 4× magnification) and below, the required critical dimension control becomes much tighter. It becomes more and more clear that the accuracy cannot be met anymore with wet etching of chrome. Sputtered molybdenum silicide (MoSi) is easier to dry etch than chrome and is therefore an important candidate as alternative opaque material on masks. The use of MoSi for attenuated PSMs is discussed. This approach has the advantage over the use of an SOG/Cr combination in that only a single dry etch process is required to etch the stack, since both materials can be etched using fluorine based plasmas. This is in contrast to chrome/shifter attenuated masks where chrome and shifter are etched separately, either wet/dry or both dry but in different chemistries. Recently published work describes the application of a single layer of a MoSiO or MoSiON with the required opacity and phase shift, by careful tuning of the refractive index and extinction coefficient. A comparison to these so-called embedded PSMs is included. For the latter an important disadvantage is the lack of conductivity of the layer, such that an extra (sacrificial) layer is required for charge dissipation during electron-beam exposure. An intermediate solution, referred to as partially embedded, is suggested as a compromise.