Bank of America Merrill Lynch Taiwan, Technology and Beyond Conference Craig De Young Vice President Investor Relations Taipei, Taiwan March 12, 2013
Forward looking statements Slide 2 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, including expected research and development expenditures, expected shipments of tools and productivity of our tools, our business model, and lithography systems development, including the development of EUV and immersion technology and related system capacity. These forward looking statements are subject to risks and uncertainties including, but not limited to: economic conditions, product demand and semiconductor equipment industry capacity, worldwide demand and manufacturing capacity utilization for semiconductors (the principal product of our customer base), including the impact of general economic conditions on consumer confidence and demand for our customers products, competitive products and pricing, the impact of manufacturing efficiencies and capacity constraints, the continuing success of technology advances and the related pace of new product development and customer acceptance of new products, our ability to enforce patents and protect intellectual property rights, the risk of intellectual property litigation, availability of raw materials and critical manufacturing equipment, trade environment, changes in exchange rates, available cash, distributable reserves for dividend payments and share repurchases, risks associated with our co-investment program, including whether the 450mm and EUV research and development programs will be successful and ASML s ability to hire additional workers as part of the 450mm and EUV development programs, our ability to successfully complete acquisitions, including the Cymer transaction or the expected benefits of the Cymer transaction. The foregoing risk list of factors is not exhaustive. You should consider carefully the foregoing factors and the other risks and uncertainties that affect the business of ASML described in the risk factors included in ASML's Annual Report on Form 20-F and other documents filed by ASML from time to time with the SEC. ASML disclaims any obligation to update the forward-looking statements contained herein.
Slide 3 Business Environment
Business environment We currently plan for 2013 revenues to be at a similar level to 2012 driven by 28 and 20 nm logic Slow Q1 start Recovering in Q2 and a relatively large second half Expect continued minimum investment level from the memory sector, generating an upside revenue opportunity if the PC business picks up 2013 supported by two drivers that are less dependent on macroeconomic circumstances: Completion of 28nm capacity installations and Strategic technology transition to extremely lithography intensive 20nm and below logic nodes First shipments of 3 rd generation EUV tools in preparation for volume manufacturing of future generation semiconductors Slide 4 17 January 2013
Net Sales 6 year Sales Review - total net sales M 2013 expected at similar level to 2012 Slide 5 17 January 2013 6000 5,651 5000 4,508 1,211 4,732 4000 3000 2000 3,768 955 934 2,954 494 697 1,596 1,521 1,176 1,459 1,529 1,023 1,229 1,228 Q1 Q2 Q3 Q4 930 844 1000 949 919 0 581 1,069 555 1,452 1,252 277 742 183 2007 2008 2009 2010 2011 2012 Numbers have been rounded for readers convenience. 2013 Estimate
Slide 6 ASML Business Strategy
Business Model Focus on right products on time Our business model is derived from our lithography Value of Ownership concept which is based, amongst others, upon the following principles: Slide 7 Maintaining an appropriate level of R&D to offer the most advanced technologies possible in order to provide the lowest cost for high volume production at the earliest possible date enhancing/following Moore s Law Offering ongoing improvements in imaging, overlay and productivity Providing high quality customer support, enhancing installed base capabilities, improving system reliability and uptimes Reducing cycle times between customer order and equipment use in production Expanding operational flexibility in R&D and manufacturing
450mm EUV Immersion Affordable shrink roadmap 2012 2013 2014 2015 2016 2017 2018 2019 2020 Slide 8 NXT:1950i, NXT:1960Bi, NXT:1970Ci NXE:3300B, NXE:3350, QXT, QXE
Significant R&D required to support lithography tool development the shrink engine R&D: Slide 9 17 October 2012 R&D: ~50 mln R&D: ~400 mln R&D: ~1.5 bln R&D: ~2 bln? bln 1980 s: PAS 2000/5000 Resolution: <500 nm Overlay >100nm 1990s: PAS 5500 steppers/scanners Resolution: 400 to 90 nm overlay: > 12 nm 2000s: Twinscan Resolution: >1X nm overlay: > 2 nm 2010s: NXE EUV systems Resolution: <15 nm overlay: <2 nm 2015s: 450 mm systems Resolution: KrF, Immersion, EUV overlay: <2 nm
Focus on dual product strategy to match customer roadmaps Slide 10 TWINSCAN NXT - Immersion Continuous improvement in throughput, overlay and imaging (CDU) optimized for multi-pass patterning at 20nm and below Introduce 450mm capability TWINSCAN NXE - EUV Preparing EUV platform for volume manufacturing of critical layers with imaging to 10nm and beyond Introduce 450mm capability Over 420 ASML immersion systems in use today 6 ASML EUV system in use today
ASML Immersion Product Roadmap NXT:1950i provides performance extendibility until EUV adoption Slide 11 TWINSCAN NXT Extendibility Upgradeability 2011 Extensions 2012 Extensions 2013+ Matched Machine Overlay 5.5nm 4.5nm 3.5nm On Product Overlay 9nm 6nm 4nm * CDU 3nm 1.5nm 1nm Total focus control budget 110nm 90nm 70nm Throughput (96 shots) 190 WPH 230 WPH 250 WPH Defects (ASML test) 10 defects/wafer 10 defects/wafer <7 defects/wafer * OPO 5nm Matched, 4nm Dedicated Chuck
ASML s Holistic Lithography Solutions support multi-pass patterning at 20nm and beyond, will support EUV in future Slide 12 ASML Scanner Wafer Track ASML Yieldstar Process window enlargement Yieldstar metrology systems and Litho InSight software roadmap supports full integration to deliver improved On- Product Performance for 20 nm node and below Process window control application platform ( one per fab )
ASML Customer Co-Investment Program allows increased R&D investments for key programs Slide 13 ASML intends to spend 750 800 million in R&D in 2013 Co-Investment participants are expected to contribute 1.4 Billion in cash for R&D in 2013-2017 Co-Investment will contribute to: Acceleration of EUV development of machines and sources including next generation EUV systems Development of 450 mm litho tools targeting pre-production systems in 2015/16 and production systems in 2018 (300mm and 450mm compatible)
EUV progress encouraging Slide 14 Imaging on the production capable NXE:3300B, shows excellent single imaging results down to 13 nm Demonstrated fully integrated EUV source showing extended, stable exposure power up to 40 Watts, good dose control, full field exposures 55 Watts shown in short runs with good key parameter control Source design tested successfully at 60 Watts with good debris control 11 system ship plan for 2013
Eleven NXE:3300B systems in various states of integration in new clean room completed in 2012 Slide 15 System 1 Development tool System 9 System 2 New cleanroom System 6 System 3 System 4 System 7 System 5 System 8 Training 10 Tool
NXE technology roadmap has great extendibility first illumination optimization on NA 0.33 system Under study Slide 16 Resolution [nm] 32 27 22 16 13 10 7 <7 Wavelength [nm] Lens NA layo ut 0.25 0.33 0.33NA DPT 0.45-0.60 DPT 0.45 0.60 # mirrors 6 8 6 or 8 flare 8% 6% 4% 13.5 Illumination coherence s=0.5 s=0.8 s=0.2-0.9 Flex-OAI Extended Flex-OAI reduced pupil fill ratio Overlay DCO [nm] 7 4.0 3.0 MMO [nm] - 7.0 5.0 1.5 1.2 1.0 2.5 2.0 1.7 Dose [mj/cm 2 ] 5 10 15 TPT (300mm) Throughphut [w/hr] 6-60 Power [W] 3 10-105 80-250 15 250 20 250-50 - 125 125 125 20 500 165
NXE:3300B imaging and overlay beyond expectations Slide 17 Scanner qualification Filtered S2F Chuck 1 (S2F) Dedicated Chuck Overlay [nm] 8 22nm HP BE = 15.9 mj/cm2 DoF = 160 nm X Y Lot (1.3,1.3) 6 4 2 1.3 1.0 1.2 1.4 1.4 1.3 99.7% x: 1.3 nm y: 1.3 nm 5 nm 0 Full wafer CDU = 1.5nm 1 2 3 Day 13 nm HP 18 nm HP 23 nm HP Matched Machine Overlay NXE- immersion [nm] Filtered S2F (S2F) Scanner capability 8 X Y Lot (3.4,3.0) 6 4 3.5 2.7 3.0 2.3 3.2 3.3 2 5 nm 0 1 2 3 Wafer XT:1950i reference wafers ) 99.7% x: 3.4 nm y: 3.0 nm
Resolution shown on NXE:3300B for dense line spaces, regular and staggered contact holes; all single exposures Slide 18 14nm HP 14nm HP 18nm HP 19nm HP 13nm HP 13nm HP 17nm HP 18nm HP Dipole30, Chemically Amplified Resist (CAR) Dipole45, Inpria Resist Quasar 30 (CAR) Large Annular (CAR)
EUV Source Power Progress incl. throughput estimates for NXE:3300B EUV system Slide 19 1000 power EUV (W) Power from the source[w] 250 In die dose variation 100 TPT Estimated NXE3350 productivity NXE:3300B [Wafers/hr] @15 mj/cm² 30 40 80 58 125 81 126 10 5 10 33 2 1 At 40 W: Simulated die yield 99.99% at 0.2% dose, over 6 consecutive runs of > 1 hr representing > 300 exposed wafers @ 15 mj/cm 2
ASML - Cymer merger agreement status In Q4 2012, we announced the intended cash-and-stock acquisition of lithographic light source supplier Cymer As part of the regulatory review process, clearance has been granted by the Committee on Foreign Investment in the United States (CFIUS), the German and Israeli anti-trust authorities Merger agreement approved by Cymer s shareholders February 2013 Awaiting regulatory approvals from US, Japan, Taiwan and Korea We continue to expect the transaction to close in H1 2013 Slide 20 17 January 2013