Competitive in Mainstream Products

Competitive in Mainstream Products Bert Koek VP, Business Unit manager 300mm Fabs Analyst Day 20 September 2005

ASML Competitive in mainstream products Introduction Market share Device layers critical and non critical Product strategy: Critical layer applications High Value of Ownership Product examples TWINSCAN, XT:850, XT:1400 Positioning for the non and mid critical segment Products XT:400, XT:760 Productivity, Availability / Slide 2

TWINSCAN : Regional share of installed base - over 300 systems within 4 years Europe USA Asia Mature platform for competitive product portfolio Source: ASML / Slide 3

TWINSCAN : Unit share of i-line, and in TWINSCAN installed base i-line Mature platform for competitive product portfolio Source: ASML / Slide 4

TWINSCAN : #1 in all regions ASML 300mm market share per region in ($) Europe USA Asia Mature platform for competitive product portfolio Source: Dataquest, ASML / Slide 5

TWINSCAN : #1 in and ASML 300mm Worldwide market share ($) i-line Mature platform for competitive product portfolio Source: ASML / Slide 6

Semiconductor device built up from large number individual layers Layer 130 nm 90 nm Isolation Resolution and Overlay critical layers Drive performance of the device (speed) Drive the size of the chip (cost) Advanced imaging systems on the roadmap to address this application XT:1400 Immersion XT:1700i Well Well Deep Well N-VT Adjust P-VT Adjust Poly Gate LDD Poly Spacer LDD LDD S/D S/D S/D Contact Metal 1 Via 1 Metal 2 Via 2 Metal 3 Via 3 Metal 4 Via 4 Metal 5 Via 5 Metal 6 Via 6 Metal X Via X Passivation PAD / Slide 7 Critical I-line Non critical

With each node, the number of layers is increasing mainly due to increased non and mid critical layers Number of critical layers remain constant over various nodes Poly, Contact, 1st metal, active area Number of non critical layers increase Interconnect and Via s Technology for non critical layers gradually moves towards shorter wavelengths 2004-2005: introduction of for non critical layers 2007-2008: introduction of for non critical layers Logic 35 Memory Number of layers 45 40 35 30 25 20 15 10 5 0 130nm 110nm 90nm 65nm 45 Technology node Critical Critical Krf I-line Number of layers 30 25 20 15 10 5 0 130 110 90 65 45 Technology node Critical Critical Krf I-line / Slide 8

Market share and product strategy ASML product strategy resulted in number 1 position in and Advanced technology development will continue to support ASML s strong position for critical layers application Growing number non and mid critical layers requires a clear strategy to further grow i-line and market share Non and mid critical layer application have different user requirements / Slide 9

EUV 13.5nm 193nm 248nm ASML 300mm product roadmap WET DRY 32 nm 45 nm 40 nm 45 nm 65 nm 70 nm 65 nm 80-70 nm 120-100 nm 180-130 nm 8X0 7X0 Decision on pilot production EUV 1250i NA=0.85 1250 NA=0.85 860 1400i NA=0.93 1400 NA=0.93 760 Alpha Demo Decision on index immersion fluids/double patterning on 193 NA 1700i NA=1.2 NA>1.3X EUV 32 nm >1.5 NA or 2x pattern i-line 365 nm 280 nm 4X0 450 2004 2005 2006 2007 2008 2009 / Slide 10

ASML 300mm dry system roadmap EUV 13.5nm WET 32 nm 45 nm 32 nm 40 nm 193nm 45 nm 65 nm 248nm DRY 70 nm 65 nm 80-70 nm 120-100 nm 180-130 nm 1400 NA=0.93 1250 NA=0.85 8X0 860 7X0 760 i-line 365 nm 280 nm 4X0 450 2004 2005 2006 2007 2008 2009 / Slide 11

TWINSCAN XT:1400 and XT:850 superior performance in CRITICAL applications Large installed base of advanced 0.8NA systems >250 systems in 200 and 300mm applications product roadmap based on mature PAS 5500 and TWINSCAN product portfolio Evolutionary >140 systems in 200mm and 300mm applications Maximum extendibility based on advanced TWINSCAN developments Low K1 applications Overlay improvements Productivity improvements / Slide 12

Twinscan High volume manufacturing in 300mm Installed base >110 systems ~15 ~60 ~35 XT:1400, 0.93NA Installed base: >25 / Slide 13 XT:1400 Resolution: 100nm Overlay: 8nm Throughput: 122wph Superior Performance in 300mm

TWINSCAN XT:1400E extendibility Highest NA litho tool for volume production Customer shipments started Q1 05 2005 2006 Q4 Q1 Q2 Q4 Q2 Q3 XT:1400 Extendibility Dry Wet Exposure Latitude (%) 25 20 15 10 5 Un polarized Polarized Factor 2 in Depth of Focus 0 0.0 0.1 0.2 0.3 0.4 Depth of Focus [µm] 15% in exposure latitude / Slide 14

AT/XT:850 Highest productivity, critical layer, system Installed base >150 systems ~5 ~130 ~20 / Slide 15 XT:850F Resolution: 100nm Overlay: 12nm Throughput: 134wph Superior Performance in 300mm

I-line and requirements will change with advanced technology nodes: non critical Resolution of backend metal, Via s and implant layers will force the transition from I-line to Critical layers will go to Number of I-line systems will reduce Number of layers will remain or grow, but application will be different. 400 World market 300mm (Units) 300 200 100 Potential non critical Critical I-line Source: ASML / Slide 16 0 2006 2007 2008 2009 2010

Creating value in NON-CRITICAL markets Means: Not just continuing available technology Instead: Focusing on additional requirements Focus on customer application Remove redundancy to save cost Maximum Wafers per Day for best Return on Investment Superior Availability to fully utilize high productivity Lowest Cost of Operation Preparing for mid critical applications / Slide 17

TWINSCAN XT:400 and XT:760 creating value in non and mid critical applications XT:400E Resolution: 350nm Overlay: 35nm 25nm Throughput: 129wph Lowest CoO in 300mm I-line XT:760F Resolution: 130nm Overlay: 15nm 12nm Throughput: 134wph Superior CoO in 300mm / Slide 18

Product overlay remains critical parameter, even in mid critical applications Control Limit Spec Limit Overlay Sample Mid critical tools based on advanced TWINSCAN technology guarantee maximum Overlay extendibility Rework Yield drop SMO MMO SMO: Single Machine Overlay MMO: Matched Machine Overlay / Slide 19 Overlay Error

Focus on cost: Capex for new investments ASML product offering for non and mid critical applications ASML introduced new products with superior competitive position Existing non critical I-line market Developing non and mid critical market XT:400 and XT:760 address non and mid critical layer applications Double digit improvement in Cost of Ownership Cost of Ownership 1.4 1.2 1 0.8 0.6 0.4 0.2 0 AT:400D +35% +60% XT:400 Cost of Ownership 1.75 1.5 1.25 1 0.75 0.5 0.25 0 XT:760F AT:850D / Slide 20

Maximize wafer output Fast Ramp-Up and Wafer per Day Productivity main driver to reduce Cost of Ownership Current state of the art productivity is: Immediately available for production, no start-up engineering Exposing average 2500 (300mm) wafers per day in real production Close cooperation with track vendors and customers is necessary to achieve and maintain this level Industry will go to 3500 (300mm) wafers per day by 2008 300mm wafers per day 2500 2000 1500 1000 500 0 Wafers per day Utilization 1 2 3 4 5 weeks after release 90 80 70 60 50 40 30 20 10 0 Utilization 300mm wafers per day 4000 3500 3000 2500 2000 1500 1000 500 0 I-line Target / Slide 21

High productivity result in maximum fab capacity Increasing number of non and mid critical layers require large production capacity for these applications High productivity tools optimizes clean room utilization Lower number of tools for same wafer fab output Higher wafer output for same clean room space ASML Medium productivity Phase 1 Phase 2 Phase 3 More Room for Additional Capacity Expansion / Slide 22

High productivity requires high availability Availability has to increase with tool productivity Scheduled and Unscheduled down time has to be reduced Engineering time and tool set-up reduced to minimum Unscheduled down time reduction: Reliability, Mean Time To Repair Advanced diagnostics, remote access of experts Scheduled down time reduction Predictive maintenance in stead of Preventive maintenance Engineering time reduction: Ease of Use, Stability / Slide 23 Productive time 100% 95% 90% 85% 80% 75% Scheduled down Unscheduled down Availability 100 125 150 175 Throughput (wafers/hour)

Conclusion ASML is world leader in 300mm high volume manufacturing ASML has aggressive roadmap with robust technology to maintain leading position in critical layer lithography ASML has competitive products and technology roadmaps to continue to grow in non and mid critical layer applications ASML will continue to drive wafer fab productivity to continuously improve our customer s competitiveness / Slide 24

Commitment