Competitive in Mainstream Products

Bert KoekVP, Business Unit manager 300mm Fabs

Analyst Day 20 September 2005

/ Slide 2

ASML Competitive in mainstream products

IntroductionMarket shareDevice layers critical and non critical

Product strategy: Critical layer applicationsHigh Value of OwnershipProduct examples TWINSCAN, XT:850, XT:1400

Positioning for the non and mid critical segmentProducts XT:400, XT:760Productivity, Availability

/ Slide 3

TWINSCAN™:Regional share of installed base - over 300 systems within 4 years

Europe

Asia

USA

Source: ASML

Mature platform for competitive product portfolio

/ Slide 4

TWINSCAN™: Unit share of i-line, KrF and ArF in TWINSCAN™ installed base

i-line

KrF

ArF

Source: ASML

Mature platform for competitive product portfolio

/ Slide 5

TWINSCAN™: #1 in all regionsASML 300mm market share per region in ($)

Europe

Asia

USA

Source: Dataquest, ASML

Mature platform for competitive product portfolio

/ Slide 6

TWINSCAN™: #1 in ArF and KrFASML 300mm Worldwide market share ($)

i-line

KrF

ArF

Source: ASML

Mature platform for competitive product portfolio

/ Slide 7

Semiconductor device built up from large number individual layers Layer 130 nm 90 nm

IsolationWellWellDeep WellN-VT AdjustP-VT AdjustPoly GateLDDPoly SpacerLDDLDDS/DS/DS/DContactMetal 1Via 1Metal 2Via 2Metal 3Via 3Metal 4Via 4Metal 5Via 5Metal 6Via 6Metal XVia XPassivationPAD

•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

Critical KrF I-line

Non critical KrFArF

/ Slide 8

With each node, the number of layers is increasing mainly due to increased non and mid critical layers

Logic

05

1015202530354045

130nm 110nm 90nm 65nm 45

Technology node

Num

ber o

f lay

ers

Critical ArFArFCritical KrFKrfI-line

• 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 KrF for non critical layers• 2007-2008: introduction of ArF for non critical layers

Memory

0

5

10

15

20

25

30

35

130 110 90 65 45

Technology node

Num

ber o

f lay

ers

Critical ArFArFCritical KrFKrfI-line

/ Slide 9

Market share and product strategy

ASML product strategy resulted in number 1 position in KrF and ArFAdvanced technology development will continue to support ASML’s strong position for critical layers applicationGrowing number non and mid critical layers requires a clear strategy to further grow i-line and KrF market shareNon and mid critical layer application have different user requirements

/ Slide 10

ASML 300mm product roadmap

2004 2005 2006 2007 2008 2009

120-100 nm

KrF

248n

m

180-130 nm

280 nm

i-lin

e36

5 nm

80-70 nm

65 nm

ArF

193n

m

DRY70 nm

45 nm

65 nm

40 nm

4X0

7X0

8X0

450

760

860

1250 NA=0.85

1250i NA=0.85

1400 NA=0.93

1400i NA=0.93

1700i NA=1.2

WET

NA>1.3X

Decision on index immersion fluids/double

patterning on 193 NA

45 nm

32 nmEU

V13

.5nm Decision on pilot

production EUV Alpha Demo

32 nm >1.5 NA or2x pattern

EUV

/ Slide 11

ASML 300mm dry system roadmap

2004 2005 2006 2007 2008 2009

120-100 nm

KrF

248n

m

180-130 nm

280 nm

i-lin

e36

5 nm

80-70 nm

65 nm

ArF

193n

m

DRY70 nm

45 nm

65 nm

40 nm

4X0

7X0

8X0

450

760

860

1250 NA=0.85

1400 NA=0.93

WET45 nm

32 nmEU

V13

.5nm

32 nm

/ Slide 12

Large installed base of advanced 0.8NA KrF systems>250 systems in 200 and 300mm applications

ArF 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 applicationsOverlay improvementsProductivity improvements

TWINSCAN™ XT:1400 and XT:850 superior performance in CRITICAL applications

/ Slide 13

~35

Twinscan High volume manufacturing in ArF300mm ArF Installed base >110 systems

XT:1400Resolution: 100nm

Overlay: 8nm

Throughput: 122wph

Superior Performance in 300mm ArF

~60~15

XT:1400, 0.93NA

Installed base: >25

/ Slide 14

TWINSCAN™ XT:1400E extendibilityHighest NA litho tool for volume production

Customer shipments started Q1’05

XT:1400

2005 2006

Q1 Q2 �� Q4 �� Q2 Q3Q4

15% in exposure latitude15% in exposure latitude

WetWetDryDry

Factor 2 in Depth of FocusFactor 2 in Depth of Focus

0

5

10

15

20

25

0.0 0.1 0.2 0.3 0.4

Exp

osur

e La

titud

e (%

)

Depth of Focus [µm]

Polarized

Un polarized

Extendibility

/ Slide 15

~20~130~5

AT/XT:850 Highest productivity, critical layer, KrF systemInstalled base >150 systems

XT:850FResolution: 100nm

Overlay: 12nm

Throughput: 134wph

Superior Performance in 300mm KrF

/ Slide 16

I-line and KrF requirements will change with advanced technology nodes: non critical KrF

Wor

ld m

arke

t 300

mm

(Uni

ts)

0

100

200

300

400

2006 2007 2008 2009 2010

Critical KrFI-line

Potential non critical KrF

Source: ASML

Resolution of backend metal, Via’s and implant layers will force the transition from I-line to KrFCritical layers will go to ArFNumber of I-line systems will reduceNumber of KrF layers will remain or grow, but application will be different.

/ Slide 17

Creating value in NON-CRITICAL markets

Means:Not just continuing available technology

Instead:Focusing on additional requirements

Focus on customer applicationRemove redundancy to save costMaximum Wafers per Day for best Return on InvestmentSuperior Availability to fully utilize high productivityLowest Cost of Operation

Preparing ArF for mid critical applications

/ Slide 18

TWINSCAN™ XT:400 and XT:760 creating value in non and mid critical applications

XT:400EResolution: 350nm

Overlay: 35nm→ 25nm

Throughput: 129wph

Lowest CoO in 300mm I-line

XT:760FResolution: 130nm

Overlay: 15nm→12nm

Throughput: 134wph

Superior CoO in 300mm KrF

/ Slide 19

SMOSMO MMOMMO

Product overlay remains critical parameter, even in mid critical applications

ControlControlLimitLimit

Overlay ErrorOverlay Error

SpecSpecLimitLimit

Overlay

Overlay

Sample

Sample

Yield dropYield dropReworkRework

Mid critical tools based on advanced TWINSCAN™ technology guarantee maximum Overlay extendibility

SMO: Single Machine OverlayMMO: Matched Machine Overlay

/ Slide 20

00.25

0.50.75

11.25

1.51.75

XT:760F AT:850D

Cos

t of O

wne

rshi

p

Focus on cost: Capex for new investmentsASML product offering for non and mid critical applications

ASML introduced new products with superior competitive positionExisting non critical I-line marketDeveloping non and mid critical KrF market

XT:400 and XT:760 address non and mid critical layer applicationsDouble digit improvement in Cost of Ownership

00.20.40.60.8

11.21.4

AT:400D XT:400

Cos

t of O

wne

rshi

p

+35% +60%

/ Slide 21

Maximize wafer outputFast Ramp-Up and Wafer per Day

Productivity main driver to reduce Cost of OwnershipCurrent state of the art productivity is:

Immediately available for production, no start-up engineeringExposing average 2500 (300mm) wafers per day in real production

Close cooperation with track vendors and customers is necessary to achieve and maintain this levelIndustry will go to 3500 (300mm) wafers per day by 2008

0

500

1000

1500

2000

2500

3000

3500

4000

I-line KrF ArF Target

300m

m w

afer

s pe

r day

0

500

1000

1500

2000

2500

1 2 3 4 5

weeks after release

300m

m w

afer

s pe

r day

0

10

20

30

40

50

60

70

80

90Ut

iliza

tion

Wafers per dayUtilization

/ Slide 22

ASML Medium productivity

High productivity result in maximum fab capacityIncreasing 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 outputHigher wafer output for same clean room space

More Room for Additional Capacity Expansion

Phase 1

I-Line

I-Line

ArF

KrF

I-LineKrF

KrF I-Line

I-Line

ArF

ArF

I-Line

I-Line

I-Line

ArF

KrF

I-Line

I-LineKrF

KrF I-Line

I-Line

I-Line

ArF

KrF

ArF

ArF

I-Line

I-Line

I-Line

I-Line

Phase 2

I-Line

I-Line

I-Line

I-Line

I-Line

KrF

KrF

ArF

ArF

I-Line

I-Line

I-Line I-Line

I-Line

I-Line

I-Line

I-Line

KrF

KrF

KrF

ArF

ArF

ArF

ArF

I-Line

I-Line

I-Line

ArF

Phase 3

I-Line

I-Line

I-Line

I-Line

I-Line

I-Line

KrF

KrF

I-Line

I-LineI-Line I-Line

KrF

ArF

ArF

ArF

ArF

/ Slide 23

High productivity requires high availability

75%80%85%90%95%

100%

100 125 150 175

Throughput (wafers/hour)

Prod

uctiv

e tim

e

Scheduled downUnscheduled downAvailability

Availability has to increase with tool productivityScheduled and Unscheduled down time has to be reducedEngineering time and tool set-up reduced to minimum

Unscheduled down time reduction:Reliability, Mean Time To RepairAdvanced diagnostics, remote access of experts

Scheduled down time reductionPredictive maintenance in stead of Preventive maintenance

Engineering time reduction:Ease of Use, Stability

/ Slide 24

Conclusion

ASML is world leader in 300mm high volume manufacturingASML has aggressive roadmap with robust technology to maintain leading position in critical layer lithographyASML has competitive products and technology roadmaps to continue to grow in non and mid critical layer applicationsASML will continue to drive wafer fab productivity to continuously improve our customer’s competitiveness

Commitment