Open Innovation and the power of the ecosystem

Transcription

1 Open Innovation and the power of the ecosystem Derek Wallace Vice President Strategic Sourcing & Procurement WIRE June 2016

2 Slide 2 Agenda About ASML Open Innovation: from design to manufacturing The power of the ecosystem Conclusion

3 ASML makes machines for making chips That s a 50-ton, 50-mln precision instrument with 50,000 components Slide 3 Nanometer accuracy across a 30-centimeter wafer Rapid acceleration and deceleration (70 kilogram mass, 15 G, 300 times a minute) Temperature stability (millikelvin) Optics, vacuum technology, plasma physics, etc. etc.

4 Our success is based on providing superior products that enable Moore s law 9 December 2015 Our market is growing as Moore s law drives innovation and investments Our focused strategy enabled us to deliver superior products to the market resulting in a steady increase of our market share ASML Litho market share % Litho market B$ Stepper Scanner Immersion TWINSCAN % EUV Source: Gartner, S&P Capital IQ, ASML

5 High tech innovation can only happen in an ecosystem Co-solution network Mask, Resist, Wafer track Wafer processing Customers Semiconductor producers Supplier and partner network Optics, measurement systems, parts, subsystems Slide 5 14 October 2015 Virtual innovation network Academia, technology providers, research institutes

6 High tech innovation can only happen in an ecosystem Customers Slide 6 14 October 2015 Co-solution partners Suppliers Academia Technology partners Advanced Research Center for Nanolithography

7 So does a traditional approach to sourcing still fit? 90% of ASML system components are strategic in the Kraljic matrix Slide 7 Supply risk Bottleneck Strategic Nonsensical result Routine Leverage Spend

8 Slide 8 Agenda About ASML Open Innovation: from design to manufacturing The power of the ecosystem Conclusion

9 What we need from our ecosystem Slide 9 Fast access to leading-edge knowledge and skills in a wide range of technologies Flexibility to adjust to changing business needs and product requirements Affordable solutions (both development and cost) through the total product life cycle

10 The solution: Open Innovation Open innovation is a way of working which creates a cross-company cooperative environment that enables out-of-the-box thinking to create a better product or service than any company can achieve separately, whereby participants share in the benefits. Slide 10

11 Collaboration must run deep, start early Select and mobilize strategic suppliers in the concept/design phase Slide 11 Explore technology options System architecture design Module design Manufacturing Product launch 3-5 years before launch Designing with today s capabilities makes for an outdated product at launch: we need shared roadmaps 6-12 months before launch

12 Sharing risk and rewards Mutual transparency ensures that risks are well understood and minimized Slide 12 Customer firm order Shipment Buy raw materials Manufacture modules Start system assembly Value Limited Commitment Zone Firm Zone Time

13 From the Kraljic matrix Slide 13 Supply risk Bottleneck Routine Strategic Leverage Spend

14 to the Open Innovation matrix (based on mutual trust) Slide 14 Highly useful, but standard Your customers will notice it only when it fails Value to customer Must-have Bread & butter Unique Bells & whistles Where your company creates value Distinctive, but of marginal utility Differentiation to competition

15 Slide 15 Agenda About ASML Open Innovation: from design to manufacturing The power of the ecosystem Conclusion

16 Europe recognizes the power of the ecosystem Longterm EC support programs for equipment industry as part of value chain DUV immersion systems EUV systems TAKE5 (ECSEL JU) SENATE (ECSEL JU) E450LMDAP (ENIAC JU) E450EDL (ENIAC JU) EEM450PR (ENIAC JU) Slide 16

17 And we recognize Open Innovation in Europe Proximity matters to strategic partnerships: trust, transparency, mutual interests Map, Europe, hotspots vs spending Total ww sourcing spend 2015: 3.8B Reasons for brainport power Slide 17 USA 14% Netherlands 44% Europe 76% Germany 30% Other EU 2% Asia 10% Brainport 50%

18 Case: Brainport proves the power of Open Innovation Win-win through reduced cost, improved design, and leverage Slide January 2016 Advanced thermal and edge sensors Collaboration on these parts runs all the way from early design to actual manufacturing These next generation sensors cover a very broad range of industrial requirements, so Neways can leverage the knowledge in other markets Reticle masking for EUV Critical technology means close collaboration Focus on trust and transparent business understanding for the long term Predefined appreciations and expectations structure between ASML and NTS, with a lot of room for entrepreneurship Win-Win: long term business model

19 Case: German partner ZEISS builds world-class optics Long-time partnership under the creed two companies, one business Slide 19

20 Conclusion Highly innovative products get built by a network, and regional partnerships play a crucial role For the network to be successful, collaboration must be redefined in terms of scope, business model and governance. Business model and Supply Chain fit for the business it is in needs adaptability through the product life cycle This will generate value in terms of innovation, total cost of ownership, and leverage for all parties involved Slide 20

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