Rik van Aken

Mature Products & Services

15 November 2017

200 mm fabs are here to stay!

PAS Life time extension program

Confidential

Slide 2

Contents

1. Introduction on the 200 mm IOT market

2. PAS Lifetime Extension Program

3. Addressing shortage of used systems

4. Options & applications maximizing good wafer output

5. Summary – ASML strategy for 200 mm market

Public

15 November 2017

The Internet of Things will connect a growing number of devices

from 12 billion in 2012 to 50 billion in 2020

Source: data from Intel (IDC 2014), artwork from Salesforce, Stuart Leung, Forbes (August 2014)

60% ‘Things’ 30% Mobile 10% PC

35% Consumer electronics 30% Buildings10%

Utilities10%

Automotive

5%

Health10% Other

Slide 3

200 mm fabs are significant producers for IOT marketPublic

15 November 2017

Slide 4

How does ASML serve the 200 mm market?

1990:

PAS 5500

steppers/scanners

Resolution: 400 to 90 nm

Overlay: 100 to 12 nm

2000:

TWINSCAN XT

Resolution:

100 to 38 nm

Overlay: 20 to 4 nm

200 mm platform of choice for

mainstream More than Moore

XT400, XT850, XT860, XT1250 &

XT1400 are also available in 200

mm version and can be upgraded to

300 mm

Public

15 November 2017

Slide 5

Market outlook suggests continued need for PAS 5500

Market size %WS CAGR (%)

Smart phone 82.5 4.0%

200 mm 16.5 20% 4.0%

300 mm 66 80% 4.0%

Automotive 31.6 6.2%

200 mm 11.4 36% 5.4%

300 mm 20.2 64% 6.6%

Industrial 32.2 8.4%

200 mm 12.7 39% 5.8%

300 mm 19.6 61% 10.0%

146.3

TOTAL SEMI 331 2.8%

Source: Gartner Q3-16 SEMIS Forecast Source: Global 200 mm Fab Outlook, V 2.1 November 2016. Copyright SEMI 2016

BUSD

3.000

3.500

4.000

4.500

5.000

5.500

6.000

175

180

185

190

195

200

205

Capacity Count

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

200-mm fab count and capacity

(Excluding LED, EPI, R&Ds)

Fa

b c

ount

200 m

m E

Q w

/m th

ousands

Not in line with previous ASML roadmap

to stop supporting PAS 5500 in 2022

… 200mm capacity reboundsMarket for 200mm wafers grows…Public

15 November 2017

Slide 6

Customer benefits of ASML PAS 5500

lifetime extension until 2030

• Continue to use existing PAS IB at low operational costs

• No requalification of existing products needed

• No transfer of products & processes to new / other fab

Guaranteed availability of parts,

keeping the system alive

Core tool value of system refurbs

Fab continuity at low

operational costs

• No worries on parts availability, including low-usage parts

• No need to start own end-of-life redesign program

• No need to harvest own equipment, reducing fab wafer

output

• Resale market remains active, tools retain value better

1

2

3

Public

15 November 2017

Slide 7

On-going ASML activities to manage availability of

parts and extend the PAS 5500 lifetime

Resolve End of Life with redesigns

for Form / Fit / Function and for

greater functionality

• Last 4 years: >350 Redesign & Replacement projects and

Investments in ‘last time buy stock’

• Invest significantly in redesigns to extend lifetime to 2030

Maintain Availability for low use

parts

• Manage supply chain continuity

• Commit for low and unpredictable volume

• Invest in supply chain tooling to ensure low use parts remain available

Maintain Lens availability• Agreement with Zeiss to guarantee Lens availability

(new & repair)

• Commitment for low and unpredictable volume

Efficient Service Organization

- Tooling & Knowledge

• Invest in inventory and restructure of Customer Support tooling

• Invest in competences of service engineers

1

2

3

4

Public

15 November 2017

Slide 8

600 end of life issues already solved since 2008

37%

34%

29%Redesign

1:1 replacement Near form-fit-

function

Last Time

Buy

Do full redesign: Create new TPD,

Integrate, Test and Qualify

Find replacement parts: Update TPD

(form fit), Integrate, Test and Qualify

Find, keep and manage risk for

Last Time Buys stock

Stock will last until 2022, redesigns

necessary to secure for 2030

Public

15 November 2017

Slide 9

Main focus on entire electronics: replacing 90’s

electronics racks, modules and components

8 racks and 100 modules redesigned for greater functionality & quality

Electronic

racks

Public

15 November 2017

Slide 10

ASML will secure availability for 1600 parts~900 parts have a world wide usage of ≤1 per year

• ASML committing minimum

volumes and/or paying for test

benches within supply chain for

low and unpredictable volume

• ASML internal investment in

D&E competence and tooling for

testing any EOL redesigns

16% of all parts =

80% of total parts usage

84% of all parts =

20% of total parts usage

70% of EOL effort30% of EOL effort

Public

15 November 2017

Slide 11

New lenses are preferred, but some lens types

are no longer manufactured…Repairing a projection lens has a longer cycle time than building a new one

shape mount assemble adjustment & Qualification

raw material element components lensATP Qualified

Lens

New

mount shape

element raw material

disassemble demount clean & shape assemble adjustment & Qualification

Repair Lens components element components lensATP Qualified

Lens

scrap

shape

raw material

Repair

scrap

replace replace

Public

15 November 2017

Slide 12

Contents

1. Introduction on the 200 mm IOT market

2. PAS Lifetime Extension Program

3. Addressing shortage of used systems

4. Options & applications maximizing good wafer output

5. Summary – ASML strategy for 200 mm market

Public

15 November 2017

Slide 13

The lifetime Extension program also results in an

improved PAS 5500 product offering for our customers

System Capacity Solutions

System Enhancements

Customer Applications

Public

15 November 2017

Slide 14

Demand for 200mm systems outpacing supply

Demand Supply

Used tools are always first choice.

• Lower costs providing better business

case for thin product margins

Demand for 200 mm wafers continues to rise

• Many IOT applications in growth mode

• Little need for leading-edge imaging and smaller

volumes

Steady source of used systems drying up

• Migration of memory & MPU applications from

200 to 300 mm largely completed

Only few surplus systems available

• Undesirable models

• Poor quality

Public

15 November 2017

Slide 15

ASML solutions to increase capacity of 200 mm fabs

Ensure long-term viability of PAS

platform• PAS Lifetime Extension Program extending lifetime up to 2030

Increase output of installed base• Productivity Enhancement Packages

• Applications Optimization Packages

Increase supply of used equipment

• Sourcing program to locate & acquire unused tools,

providing attractive trade-in credits

• Refurb program to refresh cannibalized core systems

• Conversion program to convert less-desirable into desirable models

New TWINSCAN XT systems• 300 mm systems downgraded to 200 mm readily available

• Superior Cost Of Ownership in volume applications

• Upgrade to 300 mm possible

1

2

3

4

Public

15 November 2017

Slide 16

Public

Productivity enhancements:

get the most wafers out of your installed base

Wafer Overhead Reduction

Batch Overhead Reduction

PEP:Three systems with PEP equals the productivity of four without

Wafer Overhead Reduction:Reduced overhead times minimizes cycle times

Software Overhead Reduction:

Overhead reduction via software

optimization with respect to wafer

handling and pre-alignment.

Benefits

Software Overhead Reduction

Higher Intensity

Reticle Overhead Reduction

15 November 2017

Slide 17

Customer Assessments

Productivity

Yield

• Rate efficiency

• Idle time

• Maximum

productivity

• Overlay

• Matching

• Leveling

• Imaging

Customer application assessments to maximize

good dies per dayPublic

15 November 2017

15 November 2017

Slide 18

We help you to bridge the manufacturing gap

Bio chips

Mechanical

structuresFluidics

Optical devices

Plastics

Image Sensors

ProductsSmall wafer

handling

High Bow Wafer

Handling

Special Optics

Deep Trench

ImagingOutgassing

safeguards

Back-side wafer

alignment

Equipment

adaptations

CNT

T-gate

process

High aspect ratio

Micro

pipettes

Litho equipment

Enabling

processes

Public

Slide 19

Contents

1. Introduction on the 200 mm IOT market

2. PAS Lifetime Extension Program

3. Addressing shortage of used systems

4. Options & applications maximizing good wafer output

5. Summary – ASML strategy for 200 mm market

Public

15 November 2017

Slide 20

Public

Observations 200mm litho market ASML strategy 200 mm litho market

Summary: ASML strategy & product portfolio will help

chipmakers to meet an increasing 200 mm demand

1. Customers expect to run current PAS installed base until at least 2030

2. Replacing full PAS installed base with new systems or migrating existing processes to 300 mm is expensive

3. Customers require cost-effective solutions to increase 200 mm capacity

1. Extend service roadmap of PAS by investing in redesigning end-of-life parts

2. Increase supply of used 200 mm systems & enable downgrading of new 300 to 200 mm systems

3. Help our customers to increase productivity & performance

15 November 2017