Asml Holding Nv · EURONEXT:ASML
Asml Holding Nv — Merrill Lynch and Taiwan Stock Exchange "Taiwan, Technology and Beyond Conference" 2009
24 slides from Asml Holding Nv's conference presentation, Mar 17, 2009
Slide 1: Merrill Lynch and Taiwan Stock Exchange Taiwan, Technology and Beyond Conference
Merrill Lynch and Taiwan Stock Exchange "Taiwan, Technology and Beyond Conference" Craig DeYoung - VP IR and Corporate Communications Taipei, Taiwan March 17, 2009
Slide 2: Safe Harbor
Safe Harbor "Safe Harbor" Statement under the US Private Securities Litigation Reform Act of 1995: the matters discussed in this document may include forward-looking statements, including statements made about our outlook, realization of backlog, IC unit demand, financial results, average sales pric
Slide 3: ASML - the world's largest supplier of lithography equipment
ASML - the world's largest supplier of lithography equipment Source: Semi & ASML Leadership in immersion for volume chip manufacturing ASML Canon Nikon East 65 35 0 West North ASML 65% Nikon + Canon 35% ASML AMAT TELL KLA East 22 32 25 11 10 West North KLA Tencor ASML Tokyo Electron Lam Research App
Slide 4: Company Overview
Company Overview Technology leader - immersion lithography for 55 nm and beyond Market share - 65% world wide estimated 2008 Solid Balance sheet - € 1.1B gross cash end 2008 Employ a flexible cost model Company focus Maintaining high level R&D spend to maintain/expand technology leadership and marke
Slide 5: Agenda
Agenda Market Driving technology Summary and Strategy
Slide 6: Market
Market
Slide 7: IC market fell further in December (-15% YoY)
IC market fell further in December (-15% YoY) Final 08-07 YoY IC unit growth ended at 2.8% Source: WSTS, ASML, Last data point: December 2008 IC revenue and unit sales history 4 6 8 10 12 14 16 18 20 22 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 IC Sales [B USD/Units] - -30% - -20% - -10% 0% 10% 20% 30% 40%
Slide 8: Sharp inventory reduction in December, despite low IC sales
Sharp inventory reduction in December, despite low IC sales, could indicate burn of OEM inventories & good Christmas sales IC inventory 3mma IC unit sales corrected for inventory 3mma IC unit sales 3mma IC # Inventory-sales ratio Source: VLSI Research, ASML, December 2008 0 20 40 60 80 100 120 0 5 1
Slide 9: DRAM fab capacity evolution - adjustments for falling demand
DRAM fab capacity evolution - adjustments for falling demand Source: ASML Jan '09 ^ Declining due to 200 mm retirement & 300 mm temporarily cut-backs, i.e. expected to extend into Q1/09 ^ Further extension of cut-backs will depend upon demand/supply balance ^ Technology conversion towards 5x nm DRAM
Slide 10: DRAM prices recovering as a result of capacity reductions
300 mm cash- costs for 5x nm 1 Gb DRAM Source: DRAM Exchange (02/2009) DRAM prices recovering as a result of capacity reductions & Qimonda's announcement, spot price close to cash-cost levels MAIN DRAM SPOT & CONTRACT PRICES (01/2008 - 2009YTD) 0.1 1 10 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-
Slide 11: NAND fab capacity evolution - adjustments for falling demand
NAND fab capacity evolution - adjustments for falling demand Source: ASML Jan '09 ^ Declining due to 200 mm retirements & 300 mm temporarily cut-backs, i.e. expected to extend into Q1/09 ^ Further extension of cut-backs will depend upon demand/supply balance ^ Technology conversion towards 4x nm NAN
Slide 12: NAND prices keep recovering
Source: DRAM Exchange (02/2009) 300 mm cash-costs for 4x nm 16 Gb MLC NAND NAND prices keep recovering as a result of capacity & inventory reductions, spot price higher than 4x nm cash- cost levels MAIN NAND SPOT & CONTRACT PRICES (01/2008 - 2009YTD) 1 10 100 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-0
Slide 13: Macro and sector trend summary
Macro and sector trend summary NAND Investments stop with 20% capacity reductions expected in Q1 First signs of chip price recovery Continued ramp of 4x nm and slow 3x nm ramp DRAM Capacity reductions will result in a 30% cut since Q1 '08 matching falling demand - Utilizations appear to be at approx
Slide 14: Driving technology
Driving technology
Slide 15: Customer roadmaps and technology solutions
Customer roadmaps and technology solutions 2007 2008 2009 2010 2011 2012 2013 2014 2015 DRAM (Node = hp) 65 55 45 38 32 28 NGM 22 NAND (Node = hp) 55 45 32 28 22 NGM 22 NGM 18 MPU (Node/hp) 45/80 32/60 22/40 15/30 LOGIC (Node / hp) 45/70 32/50 22/35 15/25 DPT / EUV EUV Single Expose XT:1950i NXT:195
Slide 16: DRAM operating margins well correlated to most advanced technology node
DRAM operating margins well correlated to most advanced technology node Source: DRAMeXchange (10/08), ASML Marketing (Fab dBase) Operating Margins of main DRAM Manufacturers (Q1/06 - Q3/08) - -120% - -100% - -80% - -60% - -40% - -20% 0% 20% 40% 60% Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q
Slide 17: NAND operating margins correlated to most advanced technology node too
NAND operating margins correlated to most advanced technology node too Source: DRAMeXchange (10/08), ASML Marketing (Fab dBase) Operating Margins of main NAND Manufacturers (Q1/06 - Q3/08) - -80% - -60% - -40% - -20% 0% 20% 40% 60% 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 Operating Mar
Slide 18: Product roadmap strengthening and holistic litho introduction
Product roadmap strengthening and holistic litho introduction supports customers low cost manufacturing drive Developments continue to support customer road maps TWINSCAN XTIV lower cost platform transition by end of 2009 Double patterning supported by TWINSCAN NXT multipurpose platform with substan
Slide 19: Technology choice for critical layers: Driven by cost and technology availability
Technology choice for critical layers: Driven by cost and technology availability Reticle cost based on 5000 wafers / mask usage Fixed Operating Source Chemical CVD Metrology Etch Clean Reticle 0.0 0.5 1.0 1.5 2.0 2.5 3.0 ArFi 193 nm Spacer DPT 193 nm Litho DPT EUV 193 nm Spacer DPT 193 nm Litho DPT
Slide 20: Product pipeline
Product pipeline Resolution: 32 nm Productivity to 200 wph Shipping 2009 Double patterning TWINSCAN NXT:1950 EUV TWINSCAN NXE:3100 Resolution: 22 nm and beyond Productivity to 140 wh Shipping 2010 TWINSCAN XT:1950Hi (body IV) Resolution: 38 nm Productivity to 148 wph Shipping 2009
Slide 21: ASML Holistic litho - A distinct differentiator
ASML Holistic litho - A distinct differentiator ASML Holistic litho - A distinct differentiator Holistic lithography is the integration of wafer lithography, computational lithography and metrology, aimed at optimal imaging through the tuning of the process window, productivity, overlay and critical
Slide 22: Summary/Strategy
Summary/Strategy
Slide 23: Summary and strategy
Summary and strategy No IC production capacity added due to virtual capex freeze Semiconductor equipment market pickup currently impossible to predict ASML will maintain a level of production capacity which allows us to meet changing customer needs without lengthy lead times ASML will keep strategic
Slide 24: Slide 24