"Chairman, if Nikon takes the lead in conquering 157nm laser technology and successfully develops a 65nm process lithography machine before us, how will we respond?"
CTO Thompson knows that EUV lithography machines cannot be successfully developed in a short time, and he also advocates walking on two legs. The GCA Research Institute is also developing 157nm lasers. Since GCA has always focused on developing EUV, the technology of 157nm lasers is far inferior to that of Nikon and Nikon. SVG, invest $10. If you can acquire SVG and get the catadioptric lens technology required for SVG’s unique 157nm laser, you can not overtake Nikon, but you can also keep pace with Nikon.
Chairman Sun disagreed with the company's acquisition of SVG, and Thompson didn't understand it either.
The EUV LLC alliance plans to invest US$200 million and gather more than 200 top scientists. The purpose is to theoretically verify the feasibility of EUV lithography machines? After the theoretical verification is completed, the EUV LLC alliance will announce its dissolution and hand over the problem of developing EUV and EUV lithography machines to GCA. According to estimates by peers, R&D investment will cost at least US$5 billion!
Thompson leads more than 200 scientists in the EUV LLC alliance and has been studying for more than 2 years. The feasibility of the EUV lithography machine has not yet been verified?
"Dean Thompson's concerns are reasonable. In addition to strengthening R&D capabilities and continuing to study 157nm laser technology, Mr. Adrian can contact Mr. Papken to see if the other party is willing to sell the patent for catadioptric lens technology? The price can be negotiated."
Papken is the CEO of SVG.
Sun Jian originally did not want to discuss the acquisition of SVG at the board meeting, but Thompson's question represented the doubts of GCA's senior management and had to respond head-on.
At that time, because the BSEC Research Institute's Light Source Research Institute had not successfully developed the 193nm immersion lithography machine technology, Sun Jian did not object to the GCA Research Institute walking on two legs. However, the BSEC Research Institute's Light Source Research Institute had successfully developed the 193nm immersion lithography machine technology last year. , if GCA continues to invest heavily in the research and development of 157nm lasers, it will be unnecessary, but it cannot dampen everyone's enthusiasm.
"Okay, Chairman!"
Adrian was curious, why did Chairman Sun not agree to acquire SVG? It seems that there is no special support for the development of 157nm laser technology. Is there a better way? Understand that Papken will not sell its patented catadioptric lens technology at a low price.
"Dean Thompson, once the EUV LLC alliance has theoretically verified the feasibility of EUV lithography machines, how much investment will it theoretically require if GCA continues to develop EUV lithography machines?"
Sun Jian changed the topic and also told the company's senior management that the cash flow on GCA's account was not too much, but far from enough.
In the previous life, hundreds of top scientists from the EUV LLC Alliance worked together for more than 6 years and published hundreds of scientific research papers. They theoretically verified that EUV lithography machines were feasible. The purpose was achieved and the EUV LLC Alliance was disbanded. The next practical questions were thrown to ASML. Faced with such advanced technology, should ASML choose to do it or not?
It was impossible for ASML alone to complete the ambitious project of successfully developing EUV lithography machines. It had to use nearly 30% of the company's equity to raise more than 6 billion US dollars to important downstream lithography machine customers Intel, TSMC and Samsung Electronics!
It is said that in order to develop EUV lithography machines, ASML has invested tens of billions of dollars in research and development expenses over nearly 20 years.
GCA and Nikon occupy the high-end market of lithography machines, and their technical levels are equally comparable. However, since high-end lithography machine users Intel, IBM, IT, ADM, and HP are both Sematech members and shareholders of GCA, they adopt the same external approach. Strategy, GCA’s high-end lithography machines are the first choice. GCA now accounts for nearly 70% of the global high-end market share, and NiKon accounts for more than 30%.
When the technical level is the same, the market is the deciding factor.
Based on lithography machine technology and market share, GCA has now become a veritable global leader, with Nikon ranking second.
If Nikon wants to seize orders for high-end lithography machines from Intel, IBM, IT, ADM, and HP from GCA, it can only take the lead in overcoming the world-wide problem of 193nm wavelength. It will be the first lithography machine to successfully develop a 65nm process technology. possible.
When Nikon leads in technology, Intel, IBM, IT, ADM, and HP will put the company's interests first.
ASML engineer Jones led the R&D department of more than 20 people and after more than three years of research and development, in September 1996, he successfully developed the world's second dual-working platform system for lithography machines with independent intellectual property rights, but it was too late. ASML and other lithography machine companies have purchased BSEC’s patented technology and produced their own lithography machine dual work platform systems, and BSEC is responsible for upgrading them; except for GCA, other companies that produce a lithography machine need to pay a fee equivalent to the sales price of each lithography machine. A royalty of $1.
GCA has now upgraded its magnetic levitation dual workbench system technology with 90nm process technology, which is far ahead of ASML's technology. According to the patent technology transfer agreement, BSEC was handed over to Nikon, ASML, Canon and SVG.
Global photolithography machine users have become accustomed to using BSEC magnetically suspended dual workbench system technology. ASML still uses BSEC for mid-to-high-end photolithography machines, and uses self-developed technology for low-end photolithography machines.
BSEC executives such as Wei Jianguo admire Chairman Sun's foresight. In 1999, the company's patented technology transfer fees alone reached 165% of the company's net profit based on this world-leading invention patent. It has made a lot of money in these years. The bowl is full.
ASML has been listed in Amsterdam and Nasdaq successively, and its research and development funds have been guaranteed. In October last year, it was the third lithography machine to successfully develop a 180nm process technology. Its technical level ranked in front of Canon. With the European and Korean lithography machine markets , occupying 50% of the global mid-to-high-end market share.
Philips, the third largest shareholder, was not optimistic about ASML's development prospects. Coupled with problems in the company's electrical appliance business, which caused financial constraints, it gradually sold out ASML's shares at a high level and withdrew from the board of directors. Zeiss Group became the third largest shareholder.
ASML's total share capital has now increased to 150 million shares (5 shares were given for 10 shares last year), and TIC holds 22.5 million shares, accounting for 15 shares. It has not bought or cashed out in these years.
ASML's stock closed at $235 on the Nasdaq market. L is not only an investment variety, but also a spare tire.
"Mr. Sun, according to everyone's private estimates, without an investment of US$5 billion, there will be no EUV lithography machine."
Thompson felt great pressure. Chairman Sun seemed to know the importance and difficulty of researching EUV lithography machines and invested huge sums of money. In the end, it failed. GCA may go bankrupt!
The directors also looked surprised. This was the first time they learned from Thompson that even if the EUV LLC alliance verified the feasibility of EUV lithography machines, GCA would still need at least US$5 billion in R&D investment to continue to develop EUV lithography machines. !
Once it fails, it will be a devastating blow to GCA, but Chairman Sun doesn't seem worried.
