Differentiation Strategy for Reused and New Equipment

Transcription

1 Differentiation Strategy for Reused and New Equipment SEMICON China 2010 Yidong Tong Sr. Business Development Manager Customer Satisfaction

2 Requirements of each technology node Building a Fab is expensive, complex and requires experience. Operating the technology within the Fab requires even more experience. Technology Value Cost Wafer Capacity (normalized) Technology nodes in China 300mm 200mm <150mm 45nm 65nm 90nm 130nm 180nm 0.25µm 0.35µm 0.5µm 0.75µm 1µm 2µm Most Chinese Chip Manufacturers Focus on Value and Cost Fields P. 2 Novellus Systems Proprietary Information

3 Extending 200mm equipment across technology nodes Same 200mm platforms also widely used beyond traditional chip manufacturing MEMS LED SOI wafer manufacturing Labs in R&D Institutions and Universities C2 SEQUEL EPRESS Barrier Stressed Nitrides ARL, AHM Passivation TEOS CMP 372/ /776 Metal (tungsten) Oxide M2i, M2000, Inline PVD Metal Sputtering CMP- 372/472/676/776 Cu W Concept one, C2 SEQUEL Passivation IMD, PMD,ILD and Liner C2 ALTUS Tungsten Contact and Via Fill C2 SPEED IMD Gap Fill STI PEP, L3510, Iradia Strip and Clean µm 3 Al Layers µm 4 Al Layers µm 5 Al Layers µm 6 Cu Layers nm 9 Cu Layers nm 11 Cu Layers GAMMA 2100 /PEP3510 Low k strip and clean STI, poly and contact clean C2 ALTUS Tungsten Contact Fill Bit/Word Lines PNL C2 SPEED PMD STI Existing 200mm platforms are the top choices for value and cost concerned customers P. 3 Novellus Systems Proprietary Information

4 Challenges for Reused Tool Users Unpredictability of costs Obsolescence Technical support availability Capability/quality of used tools Options for extendibility Supply of quality spares IP concerns > 75% of all Fabs built before 2001 Understanding the hidden cost associated with reused tools is the e key to successfully adopt and implement reused tools in production line P. 4 Novellus Systems Proprietary Information

5 Cost Reduction OEMs are making it harder OEMs are Providing limited refurbishment options Reducing support of older products But not supporting alternative sources And not supporting self sufficiency Focused on leading edge technology Not adequately supporting extendibility Creating expensive and inflexible solutions And little help to make them affordable So what do OEMs need to do? Source: Gartner P. 5 Novellus Systems Proprietary Information

6 OEMs need to change Offer more refurbishment options Understand most reused tools customers are cost driven Need to provide choices between newly refurbished and no offer Support extendibility of older products Don t focus only on 300mm Actively help customers become self sufficient Be more focused on reducing your costs And be more flexible charge only for what is needed Upgrades must have payback in < 1 year Help to manage the risks of using older equipment Be willing to engage and enable 3 rd parties to provide support Help reduce the risks associated with buying used tools So, what has Novellus done? P. 6 Novellus Systems Proprietary Information

7 Novellus is Helping to Manage Risks Partnering with 3 rd party companies Current Relationship New Relationship Fab Fab Licensed rd Parties 3 rd SEA (Sales and service of Legacy products in China) OEMs 3 rd Parties Novellus Separation of OEM & 3 rd parties wastes time, energy & money for the Fab Lower cost of engineering Products tailored to Fab needs OEM safety and quality standards P. 7 Novellus Systems Proprietary Information

8 Novellus is Helping to Manage Risk Taking the risk out of buying used tools New Core NEW Novellus Refurb Novellus Licensed Refurbishing Partner Broker New Process Environment OEM Process Kit Safety Upgrades Fully Tested Automation Factory Test OEM Warranty, Support S/W License Performed by licensing partners Performed by licensing partners Provided by licensing partners? Options Capital Cost High Moderate Low Low Start up OPE (hidden cost) Total Cost 0 High Low Low Low Lowest High Moderate Novellus licensed refurbishing partner focused on legacy toolsets s and older technology P. 8 Novellus Systems Proprietary Information

9 Novellus has Lowered Costs Innovative programs to reduce costs, increase return on investments nts Quantity Number of Refurbished Parts Available Increased number of refurbished parts Like-new performance 6-month warranty 50% discount from new New additions upon request Recycle Spare Service (RS 2 ) Allows the customer to recycle their previously purchased Novellus spare parts Extends spares life Increases spare performance Increase return on investments Example of Part on Recycle Spare Service Example of Part on Recycle Spare Service RE generator Matches Power supplies Domes Chucks Robots P. 9 Novellus Systems Proprietary Information

10 Novellus is Supporting Extendibility Increased engineering resources on mature products Obsolescence, CIP, Process and Technical Support Created 80 new Performance Enhancements Customer Driven 300mm concepts adapted to 200mm tools Enabling tool reuse Expanded online information Made refurbished equipment available with latest technical and safety options C2 Speed Autom atch Needs Sp eed Ch amber h as a fixed match so th e reflected p ower can va ry d ep end in g on th e process conditions Process win do w has been g reatly exp and ed since the in tro du ctio n o f Sp eed. Benefit N ew Auto match Online h as b een design ed to match th e ch amber load to the gen erato r to Information - InfoSource minimize the reflected power Proven to lower defects P. 115 P. 36 Qty /1/2005 4/8/2005 4/15/2005 4/22/2005 4/29/2005 5/6/2005 5/13/2005 5/20/2005 5/27/2005 6/3/2005 6/10/2005 Particle Tre nd 6/17/2005 6/24/2005 7/1/2005 7/8/2005 7/15/2005 7/22/2005 7/29/2005 8/5/2005 8/12/2005 8/19/2005 8/26/2005 Custom er S pecific Product Portfolio R efu rb ish ed (an d C lassic ic) System s C1D C1W C2 2 S eque l C2 2 Altuss C2 2 S pe edd C2 2 Inovaa C2 2 S abre M8 8 & M900 Inline /9 0 Inline /9 0 M M2 i MBBB A Se rie s L See ries PEE P See rie s G amm m a /2/2005 9/9/2005 Fixed Match Auto Match 9/16/2005 9/23/2005 9/30/ /7/ /14/ /21/2005 N ov el llulu s S yys te m s P ro p r iet tar y In fo or m a tio n 3722 / /7766 AURIG A CM P V MV PMM Apollo Novellus Systems Proprietary Information P N ov elllulu s S yys te m s P ro p r iettar y In foor m a tio n P. 10 Novellus Systems Proprietary Information

11 OEM provides complete portfolio of products and services Spares & Consumables Expert Services Performance Enhancements Refurbished Systems P. 11 Novellus Systems Proprietary Information

12 Novellus is changing Help manage the risks of using older equipment Low-Risk, Low-Cost Refurbished Tools Able to leverage specialists in 3 rd parties Expanded obsolescence engineering Be more focused on reducing your costs Substantial increase in number of Refurbished Parts Introduced Recycle Spare Service All upgrades have payback <1 year Support extendibility of older products Added dedicated engineering resources Increased information available online >80 Performance Enhancements Better but we still have work to do P. 12 Novellus Systems Proprietary Information

13 Help Needed... We must move beyond an adversarial relationship Negotiation battles rarely lead to the best solutions IP must be protected both yours and ours Ongoing support is funded by our IP Enabling second-sources to counterfeit our designs is counterproductive Help us to innovate Give us feedback and ideas Data sharing is critical to lowering costs Contact the OEM first we can provide a broader range of solutions We can tailor those solutions to your needs... and if a 3 rd party is needed, we ll facilitate By differentiating the strategy for reused and new equipment, OEMs are ready to offer cost competitive reused/refurbished products to Chinese customers P. 13 Novellus Systems Proprietary Information