Asm International N.v. · EURONEXT:ASM
Asm International — Investor Day (September 2021)
132 slides from Asm International's investor day presentation, Sep 28, 2021
Slide 1: Growth Through Innovation
GROWTH THROUGH INNOVATION Benjamin Loh President and CEO September 28, 2021
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Cautionary Note Regarding Forward-Looking Statements: This presentation contains “forward-looking statements”. All statements in ASMI’s Investor Day 2021 presentations, other than statements of historical fact, are forward-looking statements. Forward-looking statements inv
Slide 3: Key Takeaways
KEY TAKEAWAYS Strong digitalization trends driving significant growth in the semiconductor #1 and WFE market ASMI is the leader in ALD and expanding in Epi, technologies that are expected #2 to outgrow the WFE market driven by key inflections such as gate-all-around (GAA) Strengths in innovation, ea
Slide 4: Key Highlights at a Glance 2016-2020
KEY HIGHLIGHTS AT A GLANCE 2016-2020 More than Market 5 decades leader in Increased Expanded of experience single-wafer ALD share in Epi manufacturing Innovation helping Market share of Grew share to Singapore to advance ~55%1 ~15% end 2020 Moore’s Law Revenue Operating Patents in GHG emission 22% C
Slide 5: Market Opportunities
MARKET OPPORTUNITIES
Slide 6: Digital Transformation Drives Structural Growth
DIGITAL TRANSFORMATION DRIVES STRUCTURAL GROWTH Global semiconductor revenue (US$ billion) Megatrends driving the semiconductor market 1,200 Doubling to US$1 trillion by 2030 1,000 Security Smart home 800 Smart- Industry phones 4.0 600 Edge Autonomous computing vehicles 400 AI 200 0 2016 2017 2018 2
Slide 7: WFE Spending Expected to Increase Strongly
WFE SPENDING EXPECTED TO INCREASE STRONGLY WFE Market forecast (US$ million) 120,000 Memory & other 100,000 Logic/foundry WFE growth driven by secular trends of AI, 5G, EV, edge computing etc 80,000 Multi-year investments announced across all market segments 60,000 Further scaling, 3D transitions an
Slide 8: With Increasing Mix of Most Advanced Nodes
WITH INCREASING MIX OF MOST ADVANCED NODES WFE market by technology node 100% 75% 50% 25% 0% 2018 2019 2020 2021 2022 2023 2024 2025 7nm and below Above 7nm Most advanced nodes (7nm and below) are structurally the fastest growing parts of the WFE market – ASMI strength Source: Gartner July 2021
Slide 9: Well Positioned to Address the Major Trends
WELL POSITIONED TO ADDRESS THE MAJOR TRENDS 3D and new materials increasingly required for next generation semiconductors FINFET FINFET TO GAA TO GAA DRAM HIGH-K METAL GATE NEW MATERIALS Elements used now, or expected to be used in the next decade 3D-NAND STACKING PLANAR TO 3D-DRAM PLANAR TO 3D-NAND
Slide 10: Addressable Markets Expected to More Than Double by 2025
ADDRESSABLE MARKETS EXPECTED TO MORE THAN DOUBLE BY 2025 Single-wafer ALD market outlook Epi market outlook (US$ billion) (US$ billion) 4 2 3.1 ~ 3.7 1.5 ~ 1.8 >55% >30% target target 2 1 1.5 0.8 ~55% ~15% 0 0 2020 2025 2020 2025 ASMI market share ASMI market share ASMI internal market data
Slide 11: Strengths & Innovation
STRENGTHS & INNOVATION
Slide 12: Strengths and Innovation
STRENGTHS AND INNOVATION Strengths Market leader in Focus on deposition single-wafer ALD especially ALD and Epi Strong history in Expanded market innovation position in Epi Leading products ASMI growing 1.5x and applications faster than WFE market Early customer in 2016-2020 engagements
Slide 13: Strong History in Innovation
STRONG HISTORY IN INNOVATION More than two Close and early Decades of decades of Global collaboration experience in accumulated networked with imec, developing ALD knowhow in R&D model universities, and Epi reactors ALD materials customers and processes and chemistries
Slide 14: Leading Products and Applications
LEADING PRODUCTS AND APPLICATIONS ALD EPI INTEGRATED SURFACE CLEAN CAPABILITY •B roadest portfolio of ALD • Superb isothermal reactor products and applications design with best in class • Innovative strength in ALD close-loop direct wafer reactor design temperature control •S trength in chemistries
Slide 15: Early Customer Engagements
EARLY CUSTOMER ENGAGEMENTS Working with all major logic/foundry and memory customers to develop solutions for forthcoming technology inflections
Slide 16: Strategy
STRATEGY
Slide 17: Strategy
STRATEGY Strategic objectives: aintain leading ALD share in M logic/foundry, expand in memory Increase Epi market share elective growth in Vertical S Furnace and PECVD niches row spares and services G business ccelerating progress in A sustainability Drive continued strong financial performance
Slide 18: Strategy: Objectives and How
STRATEGY Strategic objectives: How: aintain leading ALD share in M Increase R&D investments especially in logic/foundry, expand in memory fastest growing segments – ALD and Epi Increase Epi market share ontinue enabling customer roadmaps with C elective growth in Vertical S most innovative products
Slide 19: Expansion in R&D Capacity
EXPANSION IN R&D CAPACITY Expansion in progress Planned expansions Tama, Japan Helsinki, Finland Phoenix, USA Dongtan, South Korea Includes: Significant increase Significant increase in lab in headcount across metrology and development all sites related tools
Slide 20: Leading with Innovative Products and Applications
LEADING WITH INNOVATIVE PRODUCTS AND APPLICATIONS New industry ALD workforce with superb Innovative hardware and process performance and cost of ownership control for new Epi applications SynergisTM VERACE-CL ES Edge Center Quartz Pyrometer Pyrometer Pyrometer Synergis Synergis Synergis Surface MX N
Slide 21: Strengthening Culture, Developing Our People
STRENGTHENING CULTURE, DEVELOPING OUR PEOPLE Leadership & Development Strengthening our talent pool by focusing on long-term career progression with training for WE all employees and our future leaders. E I N Growing Engagement AR NO We are making the changes that matter. WE C Engagement initiatives
Slide 22: Accelerating Progress in Sustainability
ACCELERATING PROGRESS IN SUSTAINABILITY Sustainability targets Net zero Addressing climate change Reduce environmental is imperative footprint of our operations Fostering inclusion and 100% renewable diversity in our employee base electricity by 2024 Innovating to reduce energy Aim to be net zero by
Slide 23: Growing Spares and Services
GROWING SPARES AND SERVICES Number of systems Increasing value to our customers Transactional Outcome-based services 8,000 a s e e s l ledb s erv i c t a d n g ins bas e w i e - Gro tcom Services o o u a l t Outcomes act ion n s Tra Complete Kit Management (CKM) Spares as a Service Refurbished equip
Slide 24: Expanding and Optimizing Manufacturing and Supply Chain
EXPANDING AND OPTIMIZING MANUFACTURING AND SUPPLY CHAIN New Singapore manufacturing facility 1st floor in production since Q4 2020 Supply chain Increased flexibility optimization to meet customer demand Strengthened base of 2nd floor design work world class EMS partners started and production Increa
Slide 25: Key Takeaways
KEY TAKEAWAYS Strong digitalization trends driving significant growth in the semiconductor #1 and WFE market ASMI is the leader in ALD and expanding in Epi, technologies that are expected #2 to outgrow the WFE market driven by key inflections such as gate-all-around (GAA) Strengths in innovation, ea
Slide 26: ASM International
MS ASM &i INTERNATIONAL WI
Slide 27: Driving Innovation
DRIVING INNOVATION Ivo J. Raaijmakers CTO September 28, 2021
Slide 28: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Cautionary Note Regarding Forward-Looking Statements: This presentation contains “forward-looking statements”. All statements in ASMI’s Investor Day 2021 presentations, other than statements of historical fact, are forward-looking statements. Forward-looking statements inv
Slide 29: Key Takeaways
Key Takeaways Global R&D network enables early R&D collaboration with partners and #1 customers globally R&D organization driving innovation, accumulating over two decades of #2 ALD experience Current R&D portfolio is well aligned with customer roadmaps to further extend #3 Moore’s Law #4 Inflection
Slide 30: Global Networked R&D Organization
GLOBAL NETWORKED R&D ORGANIZATION &D site R ustomer C &D partner R • Equipment and applications development in the Netherlands, USA, Japan and Korea • Finland and Belgium focus on advanced process and chemistry innovations • Co-located with University of Helsinki in Finland, and with imec in Belgium
Slide 31: R&D in Numbers
R&D IN NUMBERS &D site R ustomer C &D partner R • €172 million gross R&D spending (13% intensity) • 613 permanent R&D employees, 26 nationalities • of which 44% having an advanced degree • 2,094 patents in force R&D spending: 2020 full year; others: 2020 end of year
Slide 32: R&D Driving Innovation and Alignment with Customers Roadmaps
R&D DRIVING INNOVATION AND ALIGNMENT WITH CUSTOMERS ROADMAPS
Slide 33: R&D Driving Innovation for More Than Two Decades
R&D DRIVING INNOVATION FOR MORE THAN TWO DECADES 1995 2000 2005 2010 2015 2020 Low-k Dielectric Selective Epi S/D High-k – Metal Gate Enabling FinFET ALD for Patterning Extending Immersion Approximate Approximate start of R&D adoption for ALD for gap-fill and SiN manufacturing
Slide 34: R&D Driving Innovation for More Than Two Decades
R&D DRIVING INNOVATION FOR MORE THAN TWO DECADES 1995 2000 2005 2010 2015 2020 Low-k Dielectric Selective Epi S/D High-k – Metal Gate Enabling FinFET We will continue to drive innovation ALD for Patterning Extending Immersion Approximate Approximate start of R&D adoption for ALD for gap-fill and SiN
Slide 35: R&D Portfolio Aligned with Customers
R&D portfolio aligned with customers Device N N+1 N+2 N+3 >N+4 HVM Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 D1c D0a D0b DRAM D1a Planar DRAMD1b 3D-DRAM (3D?) (3D) (3D) 128 stack 256 stack 384 stack 512 stack 3D-NAND Single to Multi-tier 3D-NAND Novel Concepts New Concepts 1 tier 2 tier
Slide 36: Major Roadmap Trends
MAJOR ROADMAP TRENDS FinFET FINFET to GAA TO GAA DRAM high-k/metal gate Everything going 3D to enable scaling • Conformal thickness, composition and electrical properties requires more ALD… Thinner films, complex stacks, Planar to 3D-NAND Planar to 3D-DRAM PLANAR TO 3D-NAND PLANAR TO 3D-DRAM more in
Slide 37: Major Roadmap Trends
MAJOR ROADMAP TRENDS FinFET FINFET to GAA TO GAA DRAM high-k/metal gate Planar to 3D-DRAM These 3D transitions Planar to 3D-NAND PLANAR TO 3D-NAND PLANAR TO 3D-DRAM and materials lead to opportunities for ASMI in ALD and Epi markets
Slide 38: What Is ALD?
WHAT IS ALD? Clean surface before ALD First precursor pulse comes in Precursor reacts with, and attaches to surface A first ALD layer is completed A second ALD layer is completed Many ALD layers form a high quality thin film material
Slide 39: ASMI Is Market Leader in ALD
ASMI IS MARKET LEADER IN ALD Unmatched capability to conformally cover 3D structures with complex materials, with near perfect composition and electrical properties control CVD CVD ALD Step coverage not OK Step coverage OK, Step coverage, composition but properties not OK and properties all OK
Slide 40: Core Strength: Materials and Precursor Chemistry
CORE STRENGTH: MATERIALS AND PRECURSOR CHEMISTRY
Slide 41: Core Strength: Materials and Precursor Chemistry
Core Strength: Materials and Precursor Chemistry NEW CHEMICALS OR “PRECURSORS” ARE NEEDED TO BE ABLE TO MAKE THESE NEW MATERIALS WITH ALD WITH THE RIGHT QUALITIES
Slide 42: Inflections Creating Deposition Opportunities
INFLECTIONS CREATING DEPOSITION OPPORTUNITIES
Slide 43: Example Inflections in This Presentation
EXAMPLE INFLECTIONS IN THIS PRESENTATION Gate-all-around DRAM and VNAND Scaling 3D-DRAM Selective ALD
Slide 44: FinFET to Gate-All-Around Inflection
FINFET TO GATE-ALL-AROUND INFLECTION 65nm 45 - 32nm 22 - 3nm ≤ ~3nm Last planar First planar Upto 6 generations First generation generation prior to HK/MG generation with HK/MG of FinFET GAA More ALD More ALD Thermal / LPCVD Epi ALD / PVD / Epi More Epi More Epi Pictures 1-3 (from left): TechInsight
Slide 45: Gate-All-Around Creates ALD/Epi Opportunities
GATE-ALL-AROUND CREATES ALD/EPI OPPORTUNITIES GAA (2024) AND FORK-SHEET (2026~2028)GAA (2024) and ● Bulk Si Epi ● E pi/ALD in current Fork-sheet (2026~2028) ● Buried Power Rail FinFET M1 Bulk ● SiGe/Si Si Epi Channel (>3x!) Epi ● Additional passes for ● Dielectric Buried Liner and Wall Power Rail GA
Slide 46: Gate-All-Around Creates ALD/Epi Opportunities
GATE-ALL-AROUND CREATES ALD/EPI OPPORTUNITIES Logic/foundry LOGIC ALD / FOUNDRY and ALD EpiEPI AND Advanced Epi and ALD technologies enable gate-all-around architecture Average # of Layers (a.u.) inflections Epi from one single channel to three or more channels New materials needed to maintain elect
Slide 47: Near Term Scaling Drives New Materials Needs
NEAR TERM SCALING DRIVES NEW MATERIALS NEEDS DRAM 3D-NAND Capacitors Common: SNLP Higher aspect ratios Increased WL parasitics Capacitor does not scale anymore Most effective way to scale is up Source micrographs: TechInsights | DRAM schematic: ASMI
Slide 48: Near Term Scaling Needs New Materials for Memory
NEAR TERM SCALING NEEDS NEW MATERIALS FOR MEMORY DRAM 3D-NAND Capacitors Cells Common: Cells SNLP Tier 2 Higher aspect ratios Tier 1 Increased WL Periphery parasitics Periphery Capacitor does not scale anymore Most effective way to scale is up Large area consumed by Periphery • Multi-tiers beyond 12
Slide 49: 3D-DRAM Drives More ALD and Epi Opportunities
3D-DRAM DRIVES MORE ALD AND EPI OPPORTUNITIES 3D-DRAM Cost per bit scaling COST PER BIT SCALING BE Wordline 1.2 Relative cost per bit (D1Z=1) TE 64s 1.0 1C Bitline SiO 0.8 2D-DRAM + EUV 64 stacks tall Channel 0.6 96s 0.4 128s 0.2 3D-DRAM 0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 D1z D1a D1
Slide 50: Selective ALD Enables Advanced Technologies
SELECTIVE ALD ENABLES ADVANCED TECHNOLOGIES • Top-Down (litho-etch) supplemented with Bottom-Up (selective, self assembly) technologies • Delivers expanded toolbox for smart process integration strategies • Expected customer benefits • Reduced cost: potentially eliminating litho-etch steps • Improve
Slide 51: Selective ALD Enables Advanced Technologies
SELECTIVE ALD ENABLES ADVANCED TECHNOLOGIES • ASMI leading in customer adoption of Selective ALD technologies • Combinations of integrated ALD with ALE (Atomic Layer Etch) developed • “There is plenty of room at the bottom”: Selective ALD presents a potentially large SAM expansion Toposelective SiN
Slide 52: Driving Innovation from R&D to Manufacturing
DRIVING INNOVATION FROM R&D TO MANUFACTURING Inflections where ASMI can lead the industry 1995 2000 2005 2010 2015 2020 2025 2030 Low-k Dielectric 2D channel GAA Selective Epi S/D Enabling GAA channel Enabling High-k – Metal Gate Enabling GAA multi VT FinFET Extending Enabling EUV + hNA ALD for Patt
Slide 53: Driving Innovation from R&D to Manufacturing
Driving Innovation from R&D to manufacturing 1995 2000 2005 2010 2015 2020 2025 2030 Low-k Dielectric 2D channel GAA Selective Epi S/D Enabling GAA channel Enabling High-k – Metal Gate Enabling GAA multi VT FinFET Extending Enabling EUV + hNA ALD for Patterning Immersion ALD for gap-fill and SiN Met
Slide 54: Key Takeaways
Key Takeaways Global R&D network enables early R&D collaboration with partners and #1 customers globally R&D organization driving innovation, accumulating over two decades of #2 ALD experience Current R&D portfolio is well aligned with customer roadmaps to further extend #3 Moore’s Law #4 Inflection
Slide 55: ASM International
MS ASM &i INTERNATIONAL WI
Slide 56: Market Outlook & Opportunities
MARKET OUTLOOK & OPPORTUNITIES Han Westendorp Corporate VP Global Marketing September 28, 2021
Slide 57: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Cautionary Note Regarding Forward-Looking Statements: This presentation contains “forward-looking statements”. All statements in ASMI’s Investor Day 2021 presentations, other than statements of historical fact, are forward-looking statements. Forward-looking statements inv
Slide 58: Key Takeaways
KEY TAKEAWAYS #1 Strong digitalization trends driving significant growth in the semiconductor and WFE market #2 We grew faster than the deposition and WFE market over the 2016-2020 timeframe The single-wafer ALD market is expected to grow from ~US$1.5 billion in 2020 #3 to approximately US$3.1 - US$
Slide 59: Market Outlook
MARKET OUTLOOK
Slide 60: Digital Transformation Drives Structural Growth
DIGITAL TRANSFORMATION DRIVES STRUCTURAL GROWTH Global semiconductor revenue (US$ billion) 1,200 Doubling to US$1 trillion by 2030 1,000 800 600 400 200 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Source: VLSI Research, ASMI Aug 2021
Slide 61: Digital Transformation Drives Structural Growth
DIGITAL TRANSFORMATION DRIVES STRUCTURAL GROWTH Global semiconductor revenue (US$ billion) Megatrends driving the semiconductor market 1,200 Doubling to US$1 trillion by 2030 1,000 Security Smart home 800 Smart- Industry phones 4.0 600 Edge Autonomous computing vehicles 400 AI 200 0 2016 2017 2018 2
Slide 62: WFE Spending Expected to Increase Strongly
WFE SPENDING EXPECTED TO INCREASE STRONGLY WFE Market forecast (US$ million) 120,000 Memory & other 100,000 Logic/foundry WFE growth driven by secular trends of AI, 5G, EV, edge computing etc 80,000 Multi-year investments announced across all market segments 60,000 Further scaling, 3D transitions an
Slide 63: With Increasing Mix of Most Advanced Nodes
WITH INCREASING MIX OF MOST ADVANCED NODES WFE market by technology node 100% 75% 50% 25% 0% 2018 2019 2020 2021 2022 2023 2024 2025 7nm and below Above 7nm Most advanced nodes (7nm and below) are structurally the fastest growing parts of the WFE market – ASMI strength Source: Gartner July 2021
Slide 64: FY 2016-2020 Performance
FY 2016-2020 PERFORMANCE
Slide 65: We Have Outperformed the WFE Market
WE HAVE OUTPERFORMED THE WFE MARKET ASMI Equipment revenue (US$ million) 1,250 1,197 1,000 ASMI US$ equipment revenue grew with 24% CAGR over 2016-2020, +24% 750 CAGR vs 15% CAGR for the Deposition and WFE markets 503 500 ASMI growing 1.5x faster than the Deposition and WFE markets 250 0 2016 2020 A
Slide 66: We Have Outperformed the WFE Market
WE HAVE OUTPERFORMED THE WFE MARKET ALD single-wafer market (US$ billion) Epi market (US$ billion) 2 Outlook 1 in 2016: 0.8 0.8 1.5 0.6 55% 15% 1 0.5 45% 5% 0 0 2016 2020 2016 2020 ASMI market share ASMI market share • Single-wafer ALD market CAGR of 18% ahead • Epi market CAGR of 8% below WFE of 15
Slide 67: Growth Opportunities
GROWTH OPPORTUNITIES
Slide 68: Example Applications Expected to Drive ASMI Growth
EXAMPLE APPLICATIONS EXPECTED TO DRIVE ASMI GROWTH ALD HIGH-K GATE AND VT TUNING ALD DIELECTRIC GAP-FILL ALD METAL 1 2 5 FinFET GAA Seam free gap-fill in high aspect ratio 4 Better Multiple work High-k, dipole layers for multi-VT 3 features conductors function metals ALD PATTERNING SPACERS & EUV LAY
Slide 69: Single-Wafer ALD Market Outlook
Single-Wafer ALD MARKET OUTLOOK Market outlook (US$ billion) 4 3 2 1.5 0.8 1 55% 45% 0 2016 2020 ASMI Market share Historical market data: ASMI
Slide 70: Single-Wafer ALD Market Outlook
SINGLE-WAFER ALD MARKET OUTLOOK Outlook in 2021: Growth to US$3.1 - US$3.7 billion by 2025 1 4 Logic/foundry (~US$1.2 billion growth ) 2 • High-k gate & Vt tuning • Metals 3 >55% target • Patterning spacers & EUV layers • High aspect ratio gap-fill 2 Memory (~US$0.7 billion growth ) 2 1.5 • High-k g
Slide 71: Epitaxy Market Outlook
EPITAXY MARKET OUTLOOK Market outlook (US$ billion) 2 1 0.8 0.6 15% 5% 0 2016 2020 ASMI Market share Historical market data: VLSI
Slide 72: Epitaxy Market Outlook
EPITAXY MARKET OUTLOOK Outlook in 2021: Growth to US$1.5 - US$1.8 billion by 2025 1 2 >30% target Logic/foundry • Channel 1 • Source/drain contact 0.8 0.6 Memory 15% • High Performance DRAM 5% Power, Analog, Wafer 0 2016 2020 2025 1 ange based on $90-110 billion WFE R Center is ~ $1.7 billion at $10
Slide 73: ALD and Epi Market Growth in Advanced Logic
ALD AND EPI MARKET GROWTH IN ADVANCED LOGIC Growth largely driven by node progression and move to gate-all-around +$1.2 billion ALD High-k gate & Vt tuning ALD Metal ALD patterning spacers & EUV layers CMOS Epi 2020 2025 ASMI internal market data
Slide 74: Key Takeaways
KEY TAKEAWAYS #1 Strong digitalization trends driving significant growth in the semiconductor and WFE market #2 We grew faster than the deposition and WFE market over the 2016-2020 timeframe The single-wafer ALD market is expected to grow from ~US$1.5 billion in 2020 #3 to approximately US$3.1 - US$
Slide 75: ASM International
MS ASM &i INTERNATIONAL WI
Slide 76: ASMI Products & Applications
ASMI PRODUCTS & APPLICATIONS Hichem M’Saad Executive Vice President, Global Products September 28, 2021
Slide 77: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Cautionary Note Regarding Forward-Looking Statements: This presentation contains “forward-looking statements”. All statements in ASMI’s Investor Day 2021 presentations, other than statements of historical fact, are forward-looking statements. Forward-looking statements inv
Slide 78: Key Takeaways
KEY TAKEAWAYS Leader in ALD with the largest portfolio of products, applications, and materials #1 in an ever expanding market Growing market share in Epi with new innovations and well engaged in forthcoming #2 gate-all-around (GAA) transition #3 Selectively growing our offering in Vertical Furnace
Slide 79: Leader in ALD
LEADER IN ALD
Slide 80: Growth of ALD in the Semi Industry: ALD Is the New CVD
GROWTH OF ALD IN THE SEMI INDUSTRY: ALD IS THE NEW CVD 2003 2008 2013 2018 2021 3 to 4 layers 10+ layers 20+ layers 50+ layers 70+ layers Al2O3, ZrO2 HfO2, ZrO2 HfO2, ZrO2, ZAZ, SiO2, Co, FFW, HfAlO, IGZO, Mo, WN... TiN, TaN SiN, PSG, BSG… ZrAlO... TiC, TiN, TaN, Intel 22nm Intel 45nm FinFET transis
Slide 81: Broadest ALD Portfolio
BROADEST ALD PORTFOLIO XP4 Platform XP8 Platform Product Architecture PulsarTM EmerALDTM SynergisTM Synergis Synergis Synergis Surface MX NT ML Clean Material High quality Carbides Metal Metal Clean / Metals Oxides and Nitrides Oxides Nitrides Treatment Work High-k Work Patterning function, Interfac
Slide 82: Broadest ALD Portfolio (Continued)
BROADEST ALD PORTFOLIO (CONTINUED) XP8 Platform Product DCM QCM QCM architecture Silicon Oxides / Metal HT Silicon Oxides / Material Silicon Nitrides Oxides / Metal Nitrides Doped Oxides • Patterning Spacer SiO • HAR gap-fill SiO for Slit / • Gap-fill SiN • HT SiO for liner Dummy and Staircase Fill
Slide 83: ALD – Best in Class Reactor Technology
ALD – BEST IN CLASS REACTOR TECHNOLOGY Metal oxide 2 Metric Value 0 Edge exclusion 1.8mmEE 10 90 20 Mean Thick- 80 ness (A) 48.0 30 70 40 Range (A) 0.31 60 50 50 Std.Dev. (A) 0.08 60 40 70 NU% (1s) 0.16 30 80 20 90 10 Metal oxide 1 0 Metal oxide 3 90 80 70 60 50 40 30 20 10 0 47.500 47.611 47.722 47
Slide 84: ASMI ALD – Precision ALD Performance
ASMI ALD – PRECISION ALD PERFORMANCE Gap-fill SiO / SiN Liner SiO /SiN Conventional ASM ALD As Deposited ALD better Same excellent gap-fill WER film performance top and quality bottom voids void free High Quality Conformal Deposition ASMI ALD gap-fill Technology ASMI ALD Liner Technology • High Film
Slide 85: Growing with Epi
GROWING WITH EPI
Slide 86: Epi Applications Products Structure Tree
EPI APPLICATIONS PRODUCTS STRUCTURE TREE Super Trench- Si SiGe GAA SiP SiAsP SiB SiGeB IGBT Thin Thick FET MOS nMOS pMOS ASMI in 2015 Channel S/D Power Wafers Reduced pressure Atmospheric Epi products
Slide 87: Expansion of Epi SAM
EXPANSION OF EPI SAM Super Trench- Si SiGe GAA SiP SiAsP SiB SiGeB IGBT Thin Thick FET MOS nMOS pMOS ASMI in 2020 Channel S/D Power Wafers Reduced pressure Atmospheric Epi products
Slide 88: Epi Portfolio
EPI PORTFOLIO XP4 4+0, 3+1 XPE 4+2 Platform (Flexibility & high throughput density) v ISOTHERMAL VERACE-CL AEGIS Edge Center Quartz Reactor Pyrometer Pyrometer Pyrometer innovation (Intrepid ES & ESA) V3 NEXT VP Full range of ALE surface cleans (Previum)
Slide 89: Technology Inflections Are Driving Epi Innovation
TECHNOLOGY INFLECTIONS ARE DRIVING EPI INNOVATION Logic/foundry GAA integration GAA NMOS SiP GAA S/D SiP SiGe Cap Si Epi Epi S/D SiGe S/D Si SiGe Si SiGe Monolayer Epi 3D Epi
Slide 90: GAA Device: Epi Defined
GAA DEVICE: EPI DEFINED FinFET GAA Channel thickness Channel thickness 90 0 Litho/Etch Epi defined defined
Slide 91: Conventional Epi: Large Variation at Edge
CONVENTIONAL EPI: LARGE VARIATION AT EDGE Wafer L3 L2 LtL range L1 SPEC. < ~ ±1Å LtL uniformity Center Middle Edge Conventional temperature control can’t meet the stringent layer to layer (LtL) uniformity requirements
Slide 92: Verace-CL: Tight Control on LtL Uniformity
VERACE-CL: TIGHT CONTROL ON LTL UNIFORMITY Center pyrometer Edge pyrometer Wafer L3 L2 LtL range L1 SPEC. < ~ ±1Å LtL uniformity Center Middle Edge Verace-CL enables outstanding WiW and LtL uniformity of ~1A (Mono Layer Control) Key to enabling gate-all-around nanosheet stack structure
Slide 93: Epi Yield Enhancement for High Power Devices
EPI YIELD ENHANCEMENT FOR FOR HIGH POWER DEVICES Single pass: excellent electrical performance, better yield (less defects), and lower cost Conventional Intrepid ESA 100μm Interface defects Needs 5 Single pass with no Clean reactor passes interfacial defects after 100µm deposition Reactor architectu
Slide 94: Selective Expansion in Vertical Furnace and PECVD
SELECTIVE EXPANSION IN VERTICAL FURNACE AND PECVD
Slide 95: Vertical Furnace: Addressing Productivity and Flexibility
VERTICAL FURNACE: ADDRESSING PRODUCTIVITY AND FLEXIBILITY New Vertical Furnace platforms: A400XT & A400C A400 DUO A400 DUO and New 300mm platform Significant wins in China Multitude of applications: A412 New 300mm platform LPCVD, Cure, Oxidation
Slide 96: PECVD: Innovation for Selective Differentiated Applications
PECVD: INNOVATION FOR SELECTIVE DIFFERENTIATED APPLICATIONS Expanding Aurora k 3.0 Technology node vs. Developing innovation low-k technology average number gap-fill capability to more layers of layers with carbon-based films 5nm 3nm 2nm k 3.0 k 2.5 Source: Chipworks
Slide 97: Commitment to Sustainability
COMMITMENT TO SUSTAINABILITY
Slide 98: Increased Commitment to Sustainability
INCREASED COMMITMENT TO SUSTAINABILITY As a leading supplier of WFE equipment, ASMI has embarked on integrating sustainability in our product life cycle in the areas of innovation, design, system operation, and refurbishment System Equipment Innovation Design operation refurbishment In innovation In
Slide 99: Energy Reduction Through Design Innovation
ENERGY REDUCTION THROUGH DESIGN INNOVATION QCM QCM advantage ADVANTAGE for COST FOR cost and ANDenergy ENERGY XP8 DCM XP8 QCM QCM QCM ADVANTAGE ADVANTAGE FOR COST FOR COST AND ENERGY AND ENERGY XP8 DCM XP8 DCM XP8XP8 DCMQCM XP8 QCM XP8 QCM 250% 250% 250% 200195 195 200 200 200% 195 200% 200% 150% 15
Slide 100: From Transactional to Outcome-Based Services
FROM TRANSACTIONAL TO OUTCOME-BASED SERVICES
Slide 101: From a Transactional to Outcome-Based Model
FROM A TRANSACTIONAL TO OUTCOME-BASED MODEL Services portfolio Transactional Outcome-based services e s e rvic s eds e-b a o m o outc al t t i o n n sac Services Tra outcomes Complete Kit Management Spares as (CKM) a Service Refurbished equipment Transactional Transactional spares labor
Slide 102: Key Takeaways
KEY TAKEAWAYS Leader in ALD with the largest portfolio of products, applications, and materials #1 in an ever expanding market Growing market share in Epi with new innovations and well engaged in forthcoming #2 gate-all-around (GAA) transition #3 Selectively growing our offering in Vertical Furnace
Slide 103: ASM International
MS ASM &i INTERNATIONAL WI
Slide 104: Financial Update: Growth Through Innovation
FINANCIAL UPDATE: GROWTH THROUGH INNOVATION Paul Verhagen CFO September 28, 2021
Slide 105: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Cautionary Note Regarding Forward-Looking Statements: This presentation contains “forward-looking statements”. All statements in ASMI’s Investor Day 2021 presentations, other than statements of historical fact, are forward-looking statements. Forward-looking statements inv
Slide 106: Key Takeaways
KEY TAKEAWAYS #1 ASMI has grown to be a leader in ALD, creating significant value for all stakeholders Revenue target of €2.8 - €3.4 billion by 2025, representing a CAGR of 16-21%, #2 outgrowing WFE market Operating margin target ranging from 26% to 31% in 2021 - 2025 generating strong #3 free cash
Slide 107: Key Highlights at a Glance FY16-FY20
KEY HIGHLIGHTS AT A GLANCE FY16-FY20 Annualized Total total shareholder cash returned Accumulated return to shareholders free cash flow ROIC 39% €1.4 billion €411 million1, 2 11% points Revenue Gross Operating GHG emission 22% CAGR margin margin scope 1 & 2 Revenue per 3% points 11% points 15%3 head
Slide 108: Historical Key Financial Performance FY16-FY20
HISTORICAL KEY FINANCIAL PERFORMANCE FY16-FY20
Slide 109: Strong Total Shareholder Return
STRONG TOTAL SHAREHOLDER RETURN Total cumulative shareholder return in % 1,250 1,000 750 500 250 0 2016 2017 2018 2019 2020 20211 ASMI Peers’ average2 AEX SOX 1 Up to September 22, 2021 2 Peers’ average consists of Applied Materials, ASML, KLA, Lam Research, and Tokyo Electron
Slide 110: Strong Growth in Dividends
STRONG GROWTH IN DIVIDENDS Dividend PER DIVIDEND per share SHARE(in € paid in EUR over) paid over 3.50 Extra-ordinary dividend 3.00 3.00 Regular dividend 1.50 2.50 2.00 2.00 1.50 1.00 1.50 1.00 0.80 0.60 0.70 0.70 0.40 0.50 0.50 0.50 0.50 0 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Divi
Slide 111: Strong Profitable Growth
STRONG PROFITABLE GROWTH Revenue (€ million) 22% Net earnings (€ million) CAGR GROSS MARGIN in % NET EARNINGS EUR million 50 1,500 47 300 25285 44 1,328 25 42 41 43 40 1,200 240 20 1,125 20 30 180 15168 15 170 900 818 15 14 157 737 135 20 600 598 120 10 300 10 60 5 00 00 FY16 FY16 FY17 FY17 FY18 FY1
Slide 112: Margin Expansion and Earnings Growth
MARGIN EXPANSION AND EARNINGS GROWTH 22% CAGR Gross GROSSmargin MARGIN(inin%) % Operating margin NET EARNINGS EUR(in %) million 1,500 25 50 47 1,328 25 300 285 44 42 43 1,200 41 20 40 1,125 20 240 15 15 30900 737 818 15 180 14 168 157 170 598 135 20600 10 120 10300 5 60 0 0 0 0 FY16 FY16 FY17 FY17 F
Slide 113: Excess Cash Returned to Shareholders
EXCESS CASH RETURNED TO SHAREHOLDERS Free cash flow (FCF) Cumulative cash returned to market (€ million) 2,000 Share buybacks 20 18% FCF (€ million)1 1,750 Return of capital FCF as % of revenue 1,500 Dividends 15 1,250 Buyback convertibles 9% 1,000 10 750 5% 4% 5 3% 500 250 31 32 23 206 119 0 0 FY16
Slide 114: Increased R&D Investments to Support Value Creating Growth
INCREASED R&D INVESTMENTS TO SUPPORT VALUE CREATING GROWTH R&D expenses (€ million) 200 20% 17% 16% 15% 160 16% 13% 13% 15% 13% 120 11% 10% 10% 12% 80 8% 40 4% 102 91 114 93 125 89 151 111 172 139 0 0% FY16 FY17 FY18 FY191 FY20 R&D (gross) R&D (net) R&D (gross) as % of revenue R&D (net) as % of reve
Slide 115: Increased Capital Expenditures to Support Manufacturing Expansion
INCREASED CAPITAL EXPENDITURES TO SUPPORT MANUFACTURING EXPANSION Capital expenditures, gross (€ million) 100 99 FY18 FY20 80 68 60 51 47 40 34 Completed our new Completed our new facility in South Korea facility in Singapore, 20 to strengthen our substantially expanding position in this key our man
Slide 116: Disciplined Management of Working Capital
DISCIPLINED MANAGEMENT OF WORKING CAPITAL Working capital amount (€ million) and days 300 82 79 250 71 71 72 73 Working capital days in the range of 59 63 61 42 to 82 days 200 63 61 52 • Changes in working capital days mainly caused 45 150 42 by DSO ranging from 50 to 75 days 35 42 32 32 29 100 31 •
Slide 117: Targets FY21-FY25
TARGETS FY21-FY25
Slide 118: Financial Targets Towards FY25
FINANCIAL TARGETS TOWARDS FY25 FY16 FY20 FY25 Revenue €598 million €1.3 billion €2.8 to €3.4 billion1 13% CAGR 22% CAGR 16 - 21% CAGR Revenue growth (FY12-FY16) (FY16-FY20) (FY20-FY25) 46 - 50% Gross margin % 44% 47% (FY21-FY25) High single digit SG&A % revenue 15% 12% (FY25) High single digit R&D (
Slide 119: Non-Financial Targets
NON-FINANCIAL TARGETS Category Targets GHG emissions Net zero by 2035, including scope 1, 2 and 3 emissions Renewable electricity 100% renewable electricity by 2024 Safety Recordable overall injury rate less than 0.1 cases per 100 employees by 2025
Slide 120: Revenue Target of €2.8-€3.4 Billion, Outgrowing WFE Market
REVENUE TARGET OF ¤2.8 - €3.4 BILLION, OUTGROWING WFE MARKET WFE market forecast (US$ billion) Revenue (€ million) CAGR 16-21% 120 4,000 Revenue €2.8 - €3.4B 10% 101 100 CAGR 3,000 80 64 58 60 50 54 2,000 1,328 40 37 1,125 1,000 737 818 20 598 0 0 2016 2017 2018 2019 2020 2025 FY16 FY17 FY18 FY191 F
Slide 121: Sustainably Higher Gross Margin
SUSTAINABLY HIGHER GROSS MARGIN Gross margin (in %) Sustainably higher gross margin: 46 - 50% 50 47 Revenue 44 42 41 43 growth Operating leverage 44 40 30 Cost Supply chain efficiencies improvements 20 10 Mix Application mix 0 FY16 FY17 FY18 FY191 FY20 FY21-25 Average 1 Excluding proceeds from paten
Slide 122: SG&A Gradually Decrease as % of Revenue
SG&A GRADUALLY DECREASE AS % OF REVENUE SG&A (as % of revenue) Gradually 20 decreasing to high single 15 digit by FY25 15 15 14 13 12 10 SG&A as % of revenue will decrease benefiting from operating leverage due to 5 revenue growth and targeted productivity improvements 0 FY16 FY17 FY18 FY191 FY20 FY
Slide 123: High Single Digit to Low Teens Depending on Revenue Growth
HIGH SINGLE DIGIT TO LOW TEENS DEPENDING ON REVENUE GROWTH R&D (net) investments (€ million) R&D (gross) investments (€ million) 450 450 15% 15% 18% 450 18% 450 18% 18% 13% 13% 17% 17% 16% 16% 15% 15% 11% 11% 300 300 10% 10% 10% 10% 12% 300 12% 300 13% 13% 13% 13% 12% 12% 150 150 6% 6% 150 150 6% 6%
Slide 124: Improved Operating Margin Target Range
IMPROVED OPERATING MARGIN TARGET RANGE Operating margin (as % of revenue) 36 26 - 31% 30 25 24 20 Key drivers for improved operating margin: 18 19 15 15 14 • Higher gross margin 12 • Productivity improvement in SG&A and 6 to a lesser extent in R&D 0 FY16 FY17 FY18 FY191 FY20 FY21-FY25 Average 1 Excl
Slide 125: Tax Rate to Gradually Increase Over Time
TAX RATE TO GRADUALLY INCREASE OVER TIME Effective Tax Rate (ETR) (in %) 30 25 20 ETR gradually increasing to low twenties: 15 14 15 • Full utilization of historic NOLs (Net Operating Losses) 10 9 • Expiring tax incentives in coming years 5 2 1 • FY21 ETR expected to be high teens 0 FY16 FY17 FY18 F
Slide 126: Disciplined Management of Working Capital and Capex
DISCIPLINED MANAGEMENT OF WORKING CAPITAL AND CAPEX DISCIPLINED Working WORKING WORKINGcapital CAPITALdays CAPITAL DAYS DAYS Capital CAPITALexpenditure, CAPITAL gross EXPENDITURE, EXPENDITURE,GROSS GROSS EUR EUR million million Capex 55 -75 (€ million) €60 - €100 days 99 99 million 100100 100100 82
Slide 127: Capital Allocation Strategy
CAPITAL ALLOCATION STRATEGY Priority 2 Priority 1 Priority 3 Priority 4 Maintain a strong Invest to support balance sheet Sustainable dividend Return of excess future growth payments cash to shareholders Increase targeted through share R&D minimum cash buybacks Capex position towards M&A €600 millio
Slide 128: Key Takeaways
KEY TAKEAWAYS #1 ASMI has grown to be a leader in ALD, creating significant value for all stakeholders Revenue target of €2.8 - €3.4 billion by 2025, representing a CAGR of 16-21%, #2 outgrowing WFE market Operating margin target ranging from 26% to 31% in 2021 - 2025 generating strong #3 free cash
Slide 129: ASM International
MS ASM &i INTERNATIONAL WI
Slide 130: Wrap Up
WRAP UP
Slide 131: Growth Through Innovation: Key Takeaways
GROWTH THROUGH INNOVATION: KEY TAKEAWAYS Strong digitalization trends driving significant growth in the semiconductor #1 and WFE market ASMI is the leader in ALD and expanding in Epi, technologies that are expected #2 to outgrow the WFE market driven by key inflections such as gate-all-around (GAA)
Slide 132: Thank You
THANK YOU