A coating apparatus that combines two material modification techniques, physical vapour deposition of a thin film and plasma immersion ion implantation, is described. The plasma is generated by an electron cyclotron resonance (ECR) microwave plasma source. In the upper part of the vacuum chamber, the plasma is confined in a magnetic field by means of a solenoid. In the lower part, a magnetron sputter cathode and a resistively heated evaporator are mounted, which are used for depositing thin films on the sample. The sample is clamped onto a water-cooled sample holder that can be moved in the vertical direction. It is connected to a novel semiconductor-based high voltage pulse generator that provides negative voltage pulses. The characteristic features of this apparatus are presented, including technical data on the plasma source, pulse generator and deposition devices. Additionally, results on plasma characterization are discussed such as the ion density dependence on microwave power and gas pressure. Results on formation of TiN films by deposition of titanium and subsequent nitrogen PIII are presented.