06 February 2014

The nanoworld of IC manufacturing: smaller, faster, and more accurate

Patrick de JagerDirector New Business

• Chips are everywhere

• Introducing ASML

• Business update

• ASML’s place in the industry

• Lithography, the driving force behind Moore’s Law

• Technology

• How do we do it?

Agenda 22 January 2014

Public

Slide 2

• Chips are everywhere

• Introducing ASML

• Business update

• ASML’s place in the industry

• Lithography, the driving force behind Moore’s Law

• Technology

• How do we do it?

Agenda 22 January 2014

Public

Slide 3

It’s hard to imagine a world without chips22 January 2014

Public

Slide 4

More than 180 billion chips are made every year22 January 2014

Public

Slide 5

Data: WSTS

In 2012, 185 billion chips were produced — 27 for every man, woman and child on the planet.

Global semiconductor industry sales were about $300 billion.

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IC units, in billions

ConfidentialContent consumption drives traffic growth> 100% CAGR since 1990

Slide 6

ConfidentialContent consumption drives traffic growth> 100% CAGR since 1990

Slide 7

Content consumption drives traffic growth> 100% CAGR since 1990

Confidential

26x

80k Petabytes/month = 2 year of video content/s

Everything will be connected which will benefit from being connected

Slide 8

Source: Pieter Vorenkamp, Broadcom, IMEC Technology Forum, may 2012

Market driven by mobile devices and Solid State DrivesMobile drives cloud, cloud drives infrastructure, driving servers and SSD

Bob Johnson, Gartner, ISS jan 2012

Confidential

Slide 9

A chip up close: smallest details <20nm

Hair: 50.000nmGrows 8nm/sec

Red bloodcell: 7,500nm

Grass grows: 33nm/sec

Bacteria: 800 to 1,000nm

Rino virus: 20nm

• Chips are everywhere

• Introducing ASML

• Business update

• ASML’s place in the industry

• Lithography, the driving force behind Moore’s Law

• Technology

• How do we do it?

Agenda 22 January 2014

Public

Slide 11

ASML makes the machines for making those chips22 January 2014

Public

Slide 12

• Lithography is the critical tool for producing chips

• All of the world’s top chip makers are our customers

• 2013 sales: €5.2 bln

• Payroll: about 10,400 FTEs

Founded in 1984 as a spin-off from Philips22 January 2014

Public

Slide 13

2,522 employees

Source: ASML Q4 2013

Over 70 sales and service offices located worldwide

5,654 employees 2,184 employees

22 Januar!2014

Public

Slide 14

A global presence

A global presence22 January 2014

Public

Slide 15

Veldhoven

Wilton (CT)

Chandler (AZ)

Korea

Taiwan

San Diego(CA)

Company2013 semi capex

(estimate, $M)

Intel 10,500

TSMC Group 9,750

Samsung 9,500

GlobalFoundries 4,000

SK Hynix 2,730

Toshiba (incl. SanDisk) 2,580

Micron Technology 1,800

United Microelectronics Group 1,500

SMIC 805

Infineon 640

Sony 617

STMicroelectronics 500

A market of 12 large ASML customers

For the 10th consecutive year, top five of VLSI’s “Best Wafer

Processing” suppliers ‘Good Partner’ AwardPreferred

Quality Supplier AwardTechnology

Collaboration Award

Source: Gartner, Q4 2013

22 Januar!2014

Public

Slide 16

• Chips are everywhere

• Introducing ASML

• Business update

• ASML’s place in the industry

• Lithography, the driving force behind Moore’s Law

• Technology

• How do we do it?

Agenda 22 January 2014

Public

Slide 17

949 919

183742

1,452 1,252892

930 844

277

1,069

1,529

1,228

1,187

934697

555

1,176

1,459

1,229

1,318

955

494

581

1,521

1,211

1,023 1,848

0

1000

2000

3000

4000

5000

6000

2007 2008 2009 2010 2011 2012 2013

Ne

t S

ale

s

Total net sales M€

3,768

Numbers have been rounded for readers’ convenience

2,954

1,596

4,508

5,651

22 January 2014

Q1

Q2

Q3

Q4

Slide 18

4,732

Public

5,245

Net system sales breakdown in value: Q4 2013Total value is € 1,441 million

Technology

EUV 4%

ArF Immersion74%

KrF19%

Korea 21%

Taiwan41%

USA 16%

Region

Foundry46%

Memory35%

IDM19%

End-Use

EUV ArF i ArFdry KrF I-Line

Sales in Units27 26

22 January 2014

Public

Slide 19

Numbers have been rounded for readers’ convenience

Europe 5%

Rest of Asia 1%

Japan 3%

China13%

21

ArF dry 3%

• Chips are everywhere

• Introducing ASML

• Business update

• ASML’s place in the industry

• Lithography, the driving force behind Moore’s Law

• Technology

• How do we do it?

Agenda 22 January 2014

Public

Slide 20

Moore’s Law:The amount of transistors per given area doubles every 2 years at similar cost

The industry is sustained by the need to make cheaper, smaller ICs that do more

Public

Slide 21

Factories and tools are more expensive, but:

Transistors can be made faster and more economical, so:

Electronics becomes cheaper, or has more functionality for the same price

Driving the semiconductor industry: Moore’s Law

Gordon Moore (1965): Number of transistors per chip doubles every year.

Later adjusted to two years, the trend has held for more than four decades.

22 January 2014

Public

Slide 22

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

Source: Gartner. High quality Flash

Lithog

raphy

cost per

unit o

f m

em

ory

$/G

Byt

e

Moore’s Law makes chips cheaper…

10000

100

10

1

1000

22 January 2014

Public

Slide 23

$1,162 for 1 GB

$0.17 for 1 GB

… and more energy-efficientComputations per Kilowatt hour double every 1.5 years

Source: Jonathan Koomey, Lawrence Berkeley National Laboratory and Stanford University, 2009

Dell Optiplex GXI

486/25 and 486/33 Desktops

IBM PC-ATIBM PC-XT

Commodore 64

DEC PDP-11/20

Cray 1 supercomputer

IBM PC

SDS 920

Univac I

EniacEDVAC

Univac II

Univac III (transistors)

Regression results:N = 76Adjusted R-squared = 0.983Comps/kWh = exp(0.440243 x year – 849.259)Average doubling time (1946 to 2009) = 1.57 years

IBM PS/2E + Sun SS1000

Gateway P3. 733 MHz

Dell Dimension 2400

SiCortex SC5832

2008 + 2009 laptops1.E+16

1.E+15

1.E+14

1.E+13

1.E+12

1.E+11

1.E+10

1.E+09

1.E+08

1.E+07

1.E+06

1.E+05

1.E+04

1.E+03

1.E+02

1.E+01

1.E+00

Co

mp

uta

tio

ns p

er

kW

h

1940 1950 1960 1970 1980 1990 2000 2010

22 January 2014

Public

Slide 24

Moore’s Law means doing more with less

Cray 1: The first supercomputer

• 8 megabytes of memory

• 5.5 tons

• 150 kilowatt power supply

• “Innovative Freon cooling system”

• $8.8 million ($30 million in today’s dollars)

1976

22 January 2014

Public

Slide 25

Moore’s Law means doing more with less

1976 2013

The supercomputer in your pocket:a fraction of the

materials,price,

power consumption

16 October 2013

Public

Slide 26

• Chips are everywhere

• Introducing ASML

• Business update

• ASML’s place in the industry

• Lithography, the driving force behind Moore’s Law

• Technology

• How do we do it?

Agenda 22 January 2014

Public

Slide 27

Key to Moore’s Law: Making smaller transistors22 January 2014

Public

Slide 28

The first integrated circuit on silicon, on a wafer the size of a fingernail(Fairchild Semiconductor, 1959)

Today: More than a billion transistors on the same area(Intel, 2012)

Transistor length has shrunk by a million

The manufacturing loop

Exposure

Developing

Etching

Ion implantationStripping

Deposition

Photoresist coating

19 July 2012

Public

Slide 29

How a lithography system works19 July 2012

Public

Slide 30

Keeping up with Moore’s Law

PAS 2500

ASML’s first successful stepper, 1986

22 January 2014

Public

Slide 31

NXT:1970Ci

First shipped in Q3 2013

Keeping up with Moore’s Law

PAS 2500

ASML’s first successful stepper, 1986

22 January 2014

Public

Slide 32

Resolution: 900 nanometers

70 wafers per hour(150mm wafers)

Overlay:150 nanometers

NXT:1970Ci

First shipped in Q3 2013

Keeping up with Moore’s Law

PAS 2500

ASML’s first successful stepper, 1986

PublicSlide 33

Resolution: 38 nanometers

250 wafers per hour(300 mm wafers)

Overlay:As little as 2 nanometer

22 January 2014

NXT:1970Ci

First shipped in Q3 2013

10

100

Re

solu

tio

n /

ha

lf p

itch

, "S

hri

nk

" [n

m]

6

2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

Year of Production start *

Public

Slide 34

Keeping up with Moore’s Law requires constant technology upgrades

DRAM 13.9%

* Note: Process development 1.5 ~ 2 years in

advance

200

XT:1400

XT:1700i

AT:1200

XT:1900i

NXT:1950i

20

30

40

5060

80

NXE:3100

NXE:3300B

NXT:1960Bi 2

34

2

2

Single Exposure

2D LEn

Patterning

1D SADP

1D SAQP

n

NXT:1970Ci

Re

so

luti

on

/ h

alf

pit

ch

, “S

hri

nk

” [

nm

]

LE = Litho-Etch, n = number of iterations

SADP = Self Aligned Double Patterning

SAQP = Self Aligned Quadruple Patterning

NAND 17% Logic 14.1%

22 January 2014

• Chips are everywhere

• Introducing ASML

• Business update

• ASML’s place in the industry

• Lithography, the driving force behind Moore’s Law

• Technology

• How do we do it?

Agenda 22 January 2014

Public

Slide 35

Public

Slide 36

The challenge of ASML engineersSlide 36

Make small structures that are all equal within nanometers

Do that lightning fast

And put 30 to 40 layers on top of each other within nanometers

AND all at the same time !

Resolution:

Numerical aperture:

NA = n sin(Θ)

© IBM Research

John William Strutt, lord Rayleigh

R = resolution (smallest feature)λ = wavelength of lightNA = Numerical ApertureK1 = process factor (minimum 0.25)n = breaking index. Air = 1; water is 1.38

λλλλR = k1

NA

The basic rule of lithography Publicslide 37

State of the art in production• Smallest feature: 38nm• Wavelength: 193nm• Increase NA: 1.35• k1: 0.265

Key innovation: TWINSCAN22 January 2014

Public

Slide 38

• Chips are everywhere

• Introducing ASML

• Business update

• ASML’s place in the industry

• Lithography, the driving force behind Moore’s Law

• Technology

• How do we do it?

Agenda 22 January 2014

Public

Slide 39

High R&D spending to sustain technology leadership

1984:PAS 2000

Resolution:>1µm

overlay: 250 nm

1989:PAS 5000

Resolution: <500 nm

overlay: 100 nm

1990s:PAS 5500 (step/scan)

Resolution: 400 to 90 nm

overlay: 100 to 12 nm

Confidential

2010s:NXE EUV systems

Resolution: 32 to <18 nm

overlay: <3 nm

2000s:TWINSCAN

Resolution: 100 to 38 nm

overlay: 20 to 2 nm

Slide 40

Great people in an integrated supply chain22 January 214

Public

Slide 41

+/- 10,000 payroll employees

+/- 3,000 flex

R&D:

+/- 3,300 payroll

+/- 1,400 flex

>500

PhD/Dr.

Supplier and technology network:

32,000 people

Open Innovation makes complexity and cost manageable

Academia

Suppliers

Customers

Technology partners

22 January 2014

Public

Slide 42