Customer Support: Leveraging Value of Ownership

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1 Customer Support: Leveraging Value of Ownership Bernard Carayon SVP Customer Support WW Analyst Day, 30 September 2004 / Slide 1

2 Agenda! Customer Support main activities! Worldwide Organization and installed base! Financial highlights! Key achievements and projects 2004! Advanced Application Support! Strategy going forward & summary / Slide 2

3 ASML Customer Support main activities! Pre-installation and installation at customer sites! Warranty and after warranty support! Technical support! Spare parts supply! Technical training ASML + customer engineers! Field options and upgrades supply! System relocations! Application Support / Slide 3

4 Customer Support Worldwide Organization & Equipment installed base EUROPE Employees: 260 Installed base: 419 systems Veldhoven central function: 220 Employees USA Employees: 722 Installed base: 962 systems ASIA Employees: 610 Installed base: 1123 systems / Slide 4

5 M Euro The effect of a growing installed base 250 ASML service revenue - parts & labor (est) / Slide 5

6 The Asian opportunity Service revenues / system / continent 120 K Euro (est) USA Europe Asia / Slide 6

7 Customer Support key achievements and projects 2004! Customer Satisfaction! TWINSCAN TM Installation Cycle Time (ICT)! TWINSCAN TM reliability! E-diagnostic! E-Training / Slide 7

8 Customer satisfaction VLSI survey Top 10 Large Suppliers of Wafer Processing Equipment 2004 Rank Company 1 Varian Semiconductor 2 Tokyo Electron Limited 3 ASML 4 Canon 5 Hitachi Kokusai Electric Inc. 6 Novellus Systems, Inc. 7 ASM International 8 Ulvac, Inc. 9 Dainippon Screen Mfg. Co., Ltd. 10 Nikon Corporation / Slide 8

9 TWINSCAN TM Installation Cycle Time (ICT) From Delivery to Site Acceptance Test (SAT) 70 cycle time [cal days] ASML average ASML fast Competition estimate ASMLAverage installation 300mm ASML fast installation 300mm Competition 300mm 0 / Slide 9

10 TWINSCAN TM Fast Installation examples 2004 Customer A, Taiwan System type: TWINSCAN AT:850 Installation start / end date: July 18 th / August 7 th Total Installation Cycle Time (ICT): Customer B, Korea System type: TWINSCAN AT: 850 Installation start / end date: May 5th / May 26 th Total Installation Cycle Time (ICT): Customer C, Japan System type: TWINSCAN AT: 1200 Installation start / end date: June 28 th / July 21 st Total Installation Cycle Time (ICT): 20 Days 21 Days 23 Days / Slide 10

11 Reliability over >150 systems used in production MTBI - Mean time between interrupts / Slide 11

12 E- Diagnostics - Innovation in service What is E-Diagnostics! Remote access to lithography tools in the field! Automatic data collection Why E-Diagnostics?! Reduce Mean Time To Repair (MTTR) and down time! Less technical experts to travel to customer site! Remote locations can be supported from a central location! Enhance equipment performance management and predictive maintenance / Slide 12

13 E- Diagnostics Status of E-Diagnostic at ASML! Industry acceptance of E-Diagnostics is growing: Currently installed at 100 TWINSCAN TM machines at 10 customer sites World Wide! Currently used for performance data collection and trouble shooting support. Further E-diagnostic functionality to be released within the next 12 months. / Slide 13

14 E- Diagnostic! Demo / Slide 14

15 ASML Training:! Customer Support Training Department provides Technical Training to both our Customers and ASML Engineers! Over 4500 man-weeks of training per year (average 90 people /week)! Training center locations: Netherlands, USA, Korea! Currently looking into expansion of use of E-Training / Slide 15

16 E-Training - Innovation in training! Improve Engineer technical knowledge:! Be trained on time, no capacity limitation! Improve learning retention: estimate 25% higher than conventional training! Improved consistency in skill level due to automated quizzing! More graphics & interaction! Lower Training Cost:! Less training equipment & facility required! Less traveling & lodging costs! Being trained without leaving office / Slide 16

17 The growing importance of TWINSCAN TM E-Training 100% 80% 60% 40% Traditional Training E-Training 20% 0% / Slide 17

18 E- Training! Demo / Slide 18

19 Advanced Application Support Jack Gemen Application Business Support Manager Analyst Day, 30 September 2004 / Slide 19

20 The driving factor in Semiconductor Lithography! Semiconductor Industry keeps shrinking the Critical Dimension (CD) to improve chip performance creating higher yield and reduce chip size CD = k1 x λ NA / Slide 20

21 The world behind Lithographic Equipment Lowering k1, growing complexity! Semiconductor Litho engineering teams see themselves faced with an ever increasing challenge to use expensive Lithographic Equipment in the most optimal way Focus Control / Slide 21

22 The world behind Lithographic Equipment Managing Complexity Focus Control / Slide 22

23 The world behind Lithographic Equipment Managing Complexity 2004 / Slide 23

24 The world behind Lithographic Equipment Managing Complexity Focus Control / Slide 24

25 The world behind Lithographic Equipment Managing Complexity Dose Optimization Focus Control / Slide 25

26 ASML s Application Support Organization! The Application Support Organization:! Integrates Lithography Systems in volume manufacturing! Day to day assists customers in Optimizing Litho Area Performance: Overlay, Imaging, Productivity! Provide technical pre-sales on Field Options! 30 Litho Process Engineers in Head Quarters! 130 Engineers World Wide located at customer fabs / Slide 26

27 ASML s Application Support Organization Example activities! Semicon Fab Startup Support! Dedicated WW operational team delivering per site 6 months Fab Startup support.! Reduce time between system install and First Silicon Out! Optimize Imaging/Overlay/Productivity Litho Area Performance! Focussed projects to bring customers a significant improvement in Litho performance within 3 months! Main Spin-off is additional Option Sales / Slide 27

28 Semicon Fab Startup Support Mission is to support customers exceeding the ITRS roadmap on time between first System Install and first Silicon Out Months ASML Supported Startups New Fab Start-Up Roadmap [1 st litho system move-in to 1 st silicon out] technology node: 130nm 100nm 80nm 65nm ITRS Roadmap 45nm Value of Accelerated Fab Start-Up Wafer Starts Per Week Chip market price Accelerated Start-Up High value in fast startup, due to speed of decline of Chip Prices / Slide 28 Time line

29 Semicon Fab Startup Support Activities 1st System Move-in PREPARATION INSTALLATION PROCESS QUAL 1st Silicon Out PILOT PRODUCTION VOLUME PRODUCTION TIME FAB WAFER RAMP-UP OUTPUT! Preparation & Implementation of Litho Strategies! System/Process qualification! Performance optimization on Imaging/Overlay/Productivity / Slide 29

30 Semicon Fab Startup Support Historical Results! The ASML Applications Organization supported 23 new fab startups: Asia (15), EU (2), USA (6)! Supported fabs include: 300mm (10) and 200mm (13) fabs! Supported process transfers:! DRAM, Flash, Logic products of IDM and Foundry fabs! < nm technology! Participated in record new fab startup in 2003: from first system move-in > first silicon out in 7 weeks / Slide 30

31 Litho Area Performance Improvement Productivity example Productivity Bench Mark: ASML s WW WW Productivity Database Productivity Litho Area Breakdown Improvement Analysis Improvement Analysis Implementation Support: Litho Area Logistics System/Track usage Options / Slide 31

32 Litho Area Performance Improvement Productivity example Productivity Bench Mark: ASML s WW WW Productivity Database Productivity Litho Area Breakdown Improvement Analysis Improvement Analysis System output (wafers per day) Volume Foundry PAS5500 scanner productivity performance R&D Implementation Support: Litho Area Logistics System/Track usage Options 0 0 % 10 % 50 % 100 % Installed base population / Slide 32

33 Litho Area Performance Improvement Productivity example Productivity Bench Mark: ASML s WW WW Productivity Database No WIP Product layer switch Track Unsched. Down Effect of single improvement [%] 0% 1% 2% 3% 4% Productivity Litho Area Breakdown Improvement Analysis Improvement Analysis Implementation Support: Litho Area Logistics System/Track usage Options Idle before Qual Idle after Qual Response to alarm Around Reject/Rework Waiting results SAH Lot track-in aborts Other Miscelleneous / Slide 33

34 Effort Option Improvement Applicable to: System Setup (*) L MC IL: REMA delta preparation time 50ms --> 0msec BC1, BC3 0.1% 1 L MC IL: REMA delta preparation time 100ms --> 50msec BD4 0.2% 2 L MC WH: Robot gripper dx. Max. acceleration: 1696->3392 BD4 Dose & Intensity (*) M C PEP 1100 upgrade (release c) BC1, BC3 7.6% 62 Inter Wafer delay L Disable IQC corrections during batch BD4 0.4% 4 L Track STEP 1: Execute TSMC defined track process time reductions All systems 2.0% 17 M C Track STEP 2: Add track ADH unit, and HCP unit for cooling step after PEB BC1 1.8% 15 H C Track STEP 3: Extend current track configuration to remove all bottlenecks All systems 8.4% 68 Alignment Scenario (*) L Disable realignment during batch All systems 0.6% 5 M Calibrate and enable lens heating correction All systems Number of images (*) Reduce the number of images in a layer All systems 3.3% 27 M Short term: carefully review the necessity of images currently used All systems H Long term: migrate to 100% scribe lane mark alignment All systems Batch Operation M Implement RBA, and increase IQC time interval from 20min --> 8 hours BD4 0.7% 5 M Increase average batch size by 50% rework reduction (see Quality Efficiency) All systems 0.5% 4 H Careful review of track actions at layer switching All systems 0.5% 4 Effort Option Improvement Applicable to: L Upgrade to release c for an improved Fast Auto Calibration All systems L MC IL: Periodic ESCF calibration: 6h--> 1h All systems L Change job Focus Edge Clearance setting: 0mm-->3mm Applicable jobs L Execute TSMC defined action plan to reduce dynamic rejects BC1 M Calibrate and enable lens heating correction All systems L Disable IQC system correction during batch BD4 M Implement RBA BD4 L IQC system correction: measurement --> automatic update. BC1, BC3 L IQC system correction time interval: 24 hours --> 8 hours BC1, BC3 Effort Option Improvement Applicable to: M Implement "inline" IRIS inspection (release c) All systems 2.6% 21 L Solve ARMS Robot/Gripper problem BD4 2.0% 16 M Run engineering batches in SECS "remote" mode BC1, BC3 2.0% 17 Effort Option Improvement Applicable to: M C Upgrade or replace laser BD4 1.4% 11 L C Implement Test Streaming (release c) All 1.6% 13 Effort Option Improvement Applicable to: M Implement FCO 4546 (improve HP Electro-Magnetic Compatibility) All systems Litho Area Performance Improvement Productivity example Current 193nm Systems Output [good WPD] : 816 Productivity Bench Mark: ASML s WW WW Productivity Database 47% Rate Efficiency Total Output Improvement = 26.2% 214 Quality Efficiency Total Output Improvement = 4.9% 40 Idle Time Total Output Improvement = 6.5% 53 Productivity Litho Area Breakdown Improvement Analysis Improvement Analysis Implementation Support: Litho Area Logistics System/Track usage Options Scheduled Down Time Total Output Improvement = 2.9% 24 Unscheduled Down Time Total Output Improvement = Combined contributions (speed, time & quality) 3.9% 32 Total Output Improvements : 44.5% 363 Improved 193nm Systems Output [good WPD] : 1179 Output Improvement Improvement % % Simple* Complex* Customer A Customer B (Foundry) 7 21 Customer C (Foundry) Customer D 6 27 Customer E Customer F 3 47 Customer G (Foundry) Average Average 10 10% 3636% / Slide 34

35 Litho Area Performance Improvement Productivity example, value calculation! PAS 5500 system running 1200 WpD! Productivity improvement per system = 10% = 120 WpD! Revenue generated per wafer = $1,500! 25 process layers per wafer (120 wpd)(30 days/month)($1,500 per wafer) 25 layers Total Revenue Boost ~ $216,000/month/system x15 systems/fab = / Slide 35

36 ASML Application Support Creating Customer Value by Providing Customized Solutions / Slide 36

37 ASML Customer Service - Strategy going forward! Provide World Class service to further increase customer satisfaction! Enhance operational efficiency / customer satisfaction by providing innovative service solutions.! ASML services revenues to grow 10 to 20% over the next years.! Achieve steady revenues over Industry cycles. / Slide 37

38 Summary! ASML has a professional Service Organization assisting customers to create value using ASML equipment! By this ASML:! Creates customer intimacy! Distinguishes itself from competition! Lowers barriers to switch from competition to ASML / Slide 38

39 / Slide 39 Commitment

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