ASML Holding NV · EURONEXT:ASML
ASML Holding NV — ODDO BHF 3rd TMT Forum (March 2019)
33 slides from ASML Holding NV's conference presentation, Mar 19, 2019
Slide 1: ODDO TMT Conference – ASML update
Public ODDO TMT Conference – ASML update Sam van der Zalm Manager Investor Relations – Europe 19 March 2019 - Paris Public
Slide 2: And this happens 50,000 times every second
Public Slide 2 19 March 2019 And this happens 50,000 times Backlight every second, of every minute, of shadowgram from every hour, of every a NXE:3300 EUV source day…month…year….
Slide 3: Forward looking statements
Forward looking statements Public Slide 3 19 March 2019 This document contains statements relating to certain projections, business trends and other matters that are forward-looking, including statements with respect to expected trends and outlook, bookings, expected financial results and trends, in
Slide 4: Employees, R&D and manufacturing locations
Employees, R&D and manufacturing locations Public Slide 4 19 March 2019 12,704 5,396 5,155 December 2018
Slide 5: ASML enables Moore's law by providing lithography equipment
ASML enables Moore’s law by providing lithography equipment to produce smaller and more Public Slide 5 19 March 2019 powerful chips The Semiconductor Manufacturing Process A variety of complementary suppliers provide the other tools, materials and packaging equipment necessary to make ICs
Slide 6: A chip up close
A chip up close Public Slide 6 19 March 2019 Hair: 50.000nm Red bloodcell: Bacteria: 800 Gras growth: Common cold Growth: 8nm/sec 7,500nm to 1,000nm 33nm/sec virus: 30nm
Slide 7: Moore's Law is a law of economics
Moore’s Law is a law of economics Public Slide 7 19 March 2019 • Imagine printing the book The Hitchhiker’s Guide To The Galaxy (by the late great Douglas Adams) • That’s 227 pages at font size 14 • Now shrink all text to font size 7 and observe Moore’s Law at work • You’ve halved the cost 7 pt 14 p
Slide 8: ASML enables Logic process evolution
ASML enables Logic process evolution Public Slide 8 19 March 2019 2007 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 iPhone iPhone 3G iPhone 4 iPhone 4S iPhone 5 iPhone 5S iPhone 6(+) iPhone 6S(+) iPhone 7 (+) iPhone iPhone (dual lens design) 8,8+,X XS,XR APL0098 APL2298 A4 A5 A6 A7 A8 A9 A10 A1
Slide 9: Immersive devices will be the next computing wave
Immersive devices will be the next computing wave Public Slide 9 19 March 2019 1,200 ‘Immersive era’ 1,000 Smartphone + apps era 800 Drivers Resolution Frame rate Millions of units 600 400 Color accuracy Contrast/brightness PC + browser era 200 Broad applications • Entertainment • Visualization 1995
Slide 10: The revolution in automotive
The revolution in automotive Public Slide 10 19 March 2019 Source: Optics & Photonics, Texas Instruments Autonomous and connected cars drive double digit growth to 80 B$ by 2025 Source: NVIDIA Corporate Presentation 2018
Slide 11: Artificial Intelligence impacting multiple applications
Artificial Intelligence impacting multiple applications Public Slide 11 19 March 2019 Artificial Intelligence (AI) as a major industry disruptor will represent a >15B$ new revenue opportunity in semiconductors by 2022 Source: Gartner
Slide 12: 5G connectivity
5G connectivity Public Slide 12 19 March 2019 >1,000,000 connections/km2 <100,000 3G connections/km2 4G 5G 100-1000 Gb/s/km2 1 Gb/s/km2 10 Gb/s/km2 1 ms latency 100 ms latency 50 ms latency Source: Qorvo, CNET 5G connectivity speed and latency improvement drives applications with more volume and rea
Slide 13: Advanced chips are needed to store and crunch data
Advanced chips are needed to store and crunch data Public Slide 13 19 March 2019 LOGIC 44 MEMORY Zettabytes (2020) 1 ZB = 10007bytes = 1021bytes = 1000000000000000000000bytes Source: EMC Digital Universe report with Research & Analysis by IDC (2014)
Slide 14: Major trends in semiconductor-enabled computing
Major trends in semiconductor-enabled computing Public Slide 14 19 March 2019 • Autonomous decisions Applications • Immersive resolution • On-device Artificial Intelligence • Virtual / augmented reality Moore’s Law • 5G connectivity • Real-time latency Performance • Growing data volumes Algorithms C
Slide 15: Considerable motivation to continue Scaling/Shrinking
Considerable motivation to continue Scaling/Shrinking Moore’s Law is underpinning a business model Public Slide 15 19 March 2019 IC performance 1 improvement at similar cost Takeaways Part of the profits are reinvested in R&D, equipment Approx $350 billion of 4 Virtuous 2 annual profit is riding on
Slide 16: ASML operates in an industry value chain with strong incentives to innovate
ASML operates in an industry value chain that has considerable means with strong incentives to compete and drive innovation Public Slide 16 Top technology companies in our ecosystem (EBIT CY2017, B$) 19 March 2019 Applied Materials ASML LAM Research KLA-Tencor TEL 4.3 2.8 2.6 1.4 2.2 Semi Equipment
Slide 17: New semiconductor nodes drive investments in wafer capacity
New semiconductor nodes drive investments in wafer Public capacity Slide 17 19 March 2019 7000 • Growing wafer capacity drives increased litho 6000 demand WW 300mm Capacity 5000 • New (leading edge) nodes with increased litho intensity further drives litho demand (kwspm) 4000 • Conversion of existin
Slide 18: Litho Intensity increasing for Logic and DRAM segments
Litho Intensity1 increasing for Logic and DRAM segments With 3D XPoint expected to increase intensity for storage memory Public Slide 18 19 March 2019 Logic Performance Memory Storage Memory Logic Projected DRAM Projected 3D NAND Projected 50 Storage class >40 40 35% Litho Intensity [%] 29% 30 27% >
Slide 19: Our strategy addresses opportunity
Our strategy addresses opportunity Public Slide 19 19 March 2019 Opportunity ASML Strategy ● Expand our Holistic Litho opportunities ● Remain competitive in DUV ● Bring EUV to high volume manufacturing ● Extend EUV technology beyond the next decade
Slide 20: Technology roadmaps are fully aligned with all key market players
To facilitate innovation, technology roadmaps are fully Public aligned with all key market players Slide 20 19 March 2019 • Industry long-term roadmaps need strategic partnerships to succeed • ASML key enabler of EUV • EUV roadmap on track for High Volume Manufacturing in 2018/2019
Slide 21: EUV: two accelerated development programs in parallel
EUV: two accelerated development programs in parallel after having achieved volume production feasibility metrics Public Slide 21 19 March 2019 0.33 NA Summary High NA summary ● ASML and supply chain preparing for planned ● System design completed, module design progressing and key production rampin
Slide 22: Public Slide 22 19 March 2019
Public Slide 22 19 March 2019
Slide 23: Our customers are not only talking about EUV
ASML Our customers are not only talking about EUV ° Building significant capacity for EUV systems Side 28 19 March 2019 ——_ - “Well here it is: EUV is officially a 30-year overnight success story. Congratulations to the thousands who worked so tirelessly to make it happen - especially to ASML who ha
Slide 24: TSMC invests 25B$ to move to 5nm
TSMC invests 25B$ to move to 5nm, first production early 2020 7nm production has started on track Public Slide 24 19 March 2019 Source: https://www.macrumors.com/2018/06/22/tsmc-ramps-up-7nm-chips/ https://www.digitimes.com/news/a20180622PD204.html
Slide 25: EUV Lithography value for our customer
ASML EUV Lithography value for our customer ASML Slide 25 19 March 2019 EUV simplifies process complexity to enable our customers to drive cost effective patterning scaling beyond 7nm Logic and 16nm DRAM
Slide 26: 0.55NA EUV enables 3nm Logic
In the same way 0.33NA enables 7nm Logic, 0.55NA EUV enables 3nm Logic Public Slide 26 19 March 2019 Process simplification and improved device performance >> 50% cost reduction compared to multi-patterning schemes 3 to 6x cycle time reduction compared to multi-patterning for critical layers Best in
Slide 27: Holistic Lithography roadmap maximizes patterning performance
ASML’s Holistic Lithography roadmap maximizes patterning performance by optimizing Edge Placement Error (EPE) Public Slide 27 19 March 2019 Other patterning tools Lithography scanner with advanced capability (imaging, overlay and focus) Process Window resist and process Process Window Enhancement Co
Slide 28: Pattern Fidelity Control is next step in holistic lithography
Pattern Fidelity Control is next step in holistic lithography Addition of E-Beam and Etch extends and improves the control paradigm Public Slide 28 19 March 2019 Scanner wafers After-Litho After-Litho After-Etch DUV Scanner and EUV Etch metrology YieldStar E-beam YS & E-beam Scanner Control Control
Slide 29: ASML total revenues grew at a CAGR of 12% since 2010
ASML total revenues grew at a CAGR of 12% since 2010 Public Slide 29 • Systems revenue grew at a 10% 19 March 2019 CAGR since 2010 • Installed base management • 20% CAGR since 2010 driven by holistic lithography, upgrades and growing installed base • Now approximately one quarter of our total revenu
Slide 30: ASML's capital allocation policy
ASML’s capital allocation policy Public Slide 30 19 March 2019 Focused investment in our Distribute excess cash to business through R&D, Capex shareholders through a and strategic M&A combination of share buybacks Carl Zeiss SMT Holding acquisition 24.9% interest and growing dividends (1.0B€) 10.0 H
Slide 31: ASML updated Financial Model (Investor-day 2018)
ASML updated Financial Model (Investor-day 2018) Public Slide 31 19 March 2019 2017 2018 2020 2020 2025 (Actual) (Guidance) (CMD 2016) (Scenario) (Scenarios) (Moderate market) Total Sales 9.1B€ ~11B€ ~11B€ ~13B€ ~15 - 24B€ Gross margin % 45.0% ~47% >50% >50% >>50% R&D % sales 14% ~14% ~13% ~14% ~13%
Slide 32: Executive summary
Executive summary Public • Healthy semiconductor end market growth driven by major innovation in semiconductor Slide 32 19 March 2019 enabled computing provides long term growth opportunity • Shrink is a key industry driver supporting innovation and providing long term industry growth • Holistic Lit
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