| Copyright © Gigaphoton Inc.

＜KOMATSU IR-DAY 2017＞

GIGAPHOTON INTRODUCTION

15th September 2017

Tatsuo EnamiDirector and Senior Executive Officer

GIGAPHOTON

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Outline of Gigaphoton Business

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∎ Light source business for semiconductor exposure

∎ Light source business for Flat Panel Display(FPD) annealing

Source: http://www. asml.com

System sales destination ASML , Nikon, Canon

Part sales destination

Semiconductor manufacturers, such as Intel, Toshiba, Samsung,TSMC

System sales destination V-Technology

Part sales destination

Liquid crystal panel manufacturers, such as SDP,BOE

Light source

Illuminator

Scan stage

Panel

Loader

Source: V-Technology brochure

Light Source for Semiconductor

Exposure

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Cutting-Edge Product Structure and Performance

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dimensions

Width 2800mmDepth 845mmHeight 2120mm

Weight 3410kgSpecifications

Wavelength 193nmAverage Output 60 - 120WPulse Energy 10 - 20mJRepetition Frequency 6000Hz

Spectrum Width (E95) 0.25pm

Technology Transition

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Excimer Exposure

0.01

0.1

1

10

1980 1985 1990 1995 2000 2005 2010

Feat

ure

size

(nm

)

G-line(436nm) I-line

(365nm)

KrF(248nm) ArF (Dry)

(193nm) ArF (immersion)(equiv. 134nm)

45nm

65nm90nm

130nm180nm

250nm350nm

750nm

1000nm

500nm

Source: ASML, Canon, Nikon

Semiconductor Market∎ Semiconductor market size is 330 $B and will grow at +3%

/year.∎ 3D NAND and IoT application will sustain a demand for

legacy KrF lasers.

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0

100

200

300

400

500

Sem

icon

duct

or m

arke

t ($

B)

PC

Notebook PC

Feature phone

SmartphoneTablet

3D-NAND IoT

0%

50%

100%

'97 '01 '05 '09 '13 '17

Ligh

t sou

rce

(%)

G-line,I-line KrF ArF

History of Excimer Lasers Development at Komatsu

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In 2000Gigaphoton was born!

1980 - The first Excimer LASER was developed atKomatsu for the Coherent Anti-StokesRaman Spectroscopy (a.k.a. CARS) system

1987 - Komatsu shipped the worldʼs first KrF excimer laser KLE-630S for lithography … 2 full Watts output !!!

1989 - Cymer enters market of Excimer lasers for lithography tools.The rivalry begins …!!!

1999 – Our first KrF laser for semiconductor manufacturing, KLES-G10K was shipped to overseas

2000 – Komatsu and Ushio developed joint venture company…Gigaphoton Inc. is founded !!!

Business Model of DUV Light Source∎ Composite business of System sales(Light source unit sales) and Part sales

(Maintenance business) Systems are sold to exposure equipment manufacturers. Upon system sales, Gigaphoton (GPI) receives a maintenance contract, called Pay-per-

pulse, from semiconductor manufacturers.*Pay-per-pulse: Charging system paid on the basis of the Laser usage (Pulse usage ×Pulse unit price）

(GPI benefits）Secure stable revenue streamPart lifetime extension enables cost reduction

(Customer benefits） Ease of cost managementMaintenance plan can be optimized to maximize utilization

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Light source unit salesExposure equipment manufacturers：

ASML, Nikon, Canon

Semiconductor manufactures：Intel, Micron, TSMC, Samsung, Global foundries, Toshiba, SK Hynix…

Exposure equipmentsales

Parts sales

Main unit sales business

Maintenance business

Optical module

GIGAPOTON groupGPK (GIGAPHOTON Korea)

GPT (GIGAPHOTON Taiwan)GPU (GIGAPHOTON USA)GPE (GIGAPHOTON Europe)GPSB (Singapore branch)KIS (China：Komatsu

Industries)

Laser discharge tube module

Cumulative Light Source Installations

0

200

400

600

800

1000

1200

1400

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Cum

ulat

ive

Inst

alla

tions

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1300 light source are under operation.

Breakdown at the end of fiscal 2016▸KrF ……………………68%▸ArF Dry ……………...8%▸ArF Immersion ………24%

Sales and Profit Trend(Non-consolidated)

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-50

0

50

100

150

200

250

300

350

2000( )

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

100

Mill

ion

Yen

(8 months)

Operating profit (loss)

Light source sales

Part sales

Priority for Exposure Light Source∎ Support for expanding Chinese

market▸In June 2014, the State Council of China issued

the "National Guideline for the Development and Promotion of the IC Industry,” to support the development of the domestic semiconductor industry.

▸ Semiconductor sales in 2015 will be increased by 40% compared with 2013, and in 2030 a number of world-class companies will be nurtured.

▸ Established "China IC Industry Fund" of 2 trillion yen

∎ Introduction of EUV light source into the market▸ Major semiconductor manufactures are

planning aggressive investment to apply EUV for 7nm to 5 nm process.

▸ Highest level of durability and reliability are required for mass production.

▸ Two suppliers only. ASML(Cymer) and Gigaphoton.

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Gigaphoton's Strategy for China Market∎ One Gigaphoton Support

▸ Gigaphoton group is organizing a cross-sectional project centered on Optical division of Komatsu Industrial Shanghai(KIS) with HQ and oversea subsidiaries in order to quickly strengthen the China business.

▸ Strengthen local sales force· Support form Gigaphoton HQ, Taiwan(GPT) and

Korea(GPK)▸ Opening of new support offices

· 6 offices (Today) 11 offices (End of FY2017)▸ Opening of Training Center

· August 2017, Gigaphoton opened a training center in order to train new service engineers at Komatsu China in Changzhou City.

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Semiconductor Roadmap & EUV Insertion

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Logi

cPe

rfor

man

ceM

emor

ySt

orag

e Cl

ass

Mem

ory

20nm 16/14nm 10nm 7nm 5nm 3nm

28-30 20-22 1X 1Y 1Z next

2X'/x2 1X"/x4 1Y"/x8 1Z"/x8

2014 2015 2016 2017 2018 2019 2020 2021 2022

EUV Production Insertion Window

DRAM

ReRAM, X-point etc.

＊Source: ASML Materials

ProductionDevelopment Research Roadmap

Technology Concept of EUV Light Source ∎ High efficiency (x1/2 energy saving)

▸High conversion efficiency by Pre-Pulse Technology (picosecond YAG laser)

▸High power CO2 laser co-developed with Mitsubishi Electric∎ High durability, High reliability

▸Tin(Sn) debris mitigation with a super conductive magnetic field

Droplet Generator

IntermediateFocus

pre-pulselaser

CO2 laser

Configuration

Chamber

Liquid Sn dropletCollector Mirror

Magnet

Fine-mist(300um, liquid)

Plasma(gas)

pre-pulselaser

main-pulselaser

Emission mechanism

EUV lightEmission

Ions to betrapped by magnetic field

(Remaining atoms on mirror etched by gas)

Liquid Sn droplet(20um, liquid)

9860mm

6600mm

2300mm

Weight：30ton

Fab : Chamber

Sub fab : Laser

Transfer laser to fab

Outline view

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0

100

200

300

Out

put p

ower

(W

) Giga (R&D)Giga (R&D_Pilot)Competitor (R&D)Competitor (Product)

Target at high-volume

Target at initial production

2014H1

2014H2

2015H1

2015H2

2016H1

2016H2

2017H1

EUV Light Source Development Progress∎ Achieved 250W output power, matching with the competitor

under laboratory environment∎ Current focus is on reliability improvement at the 100 W level

(target at initial mass production) with pilot type EUV light source.

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Light Source for FPD Annealing

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Support Large-sized Glass Substrate

Size of glass substrate※1

V-Technologyʼs annealing method(PLAS※2)for large-sized panel

Competitorʼs annealing method (ELA) for small to mid-sized panel

G6X1500㎜Y1850㎜

○ Capable ○ Capable

G8X2200㎜Y2400㎜

○ Capable （No track record）※3

G10 SDPX2880㎜Y3130㎜

○ Capable （No track record）

G10.5 BOEX2940㎜Y3370㎜

○ Capable （No track record）

※1 Size of glass substrate (Above figure)※2 PLAS : Partial Laser Anneal Silicon※3 Our competitorʼs line beam method has no track record for glass substrate larger than G6 due to the size limitation of the irradiation optical system

G10.5 2940㎜ × 3400㎜

G8 2160㎜ × 2400㎜

G7 1870㎜ × 2200㎜

G6 1500㎜ × 1800㎜

G5 1100㎜ × 1250㎜

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∎ Glass substrate has become larger along with upsizing TV screen.∎ Our competitor cannot support beyond G6 due to their annealing optical system design.∎ Glass substrate larger than G6 size is currently under development by a novel method

by our partner, V-Technology company.

Features of Light Source for FPD Annealing

Application FPD annealing Semiconductor exposureType GT600K GT64A

Appearance※FPD annealing laser has a new

and different panel color.

SpecificationsWavelength 248nm 193nm

Repetition Rate 6000Hz 6000HzPulse Energy 100mJ 10mJ Output Power 600W 60W

New Head Office Building Completed∎ Manufacturing capacity expansion (x1.4) to support increasing

light source demand∎ Improvement of office environment

| Copyright © Gigaphoton Inc.

THANK YOU

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