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IC steppers and scanners, LCD steppers and scanners
Business conditions for the semiconductor-related industry will likely remain difficult, with device manufacturers showing continued caution regarding capital expenditures. The LCD panel market is also expected to lack transparency, despite some signs of rising operation rates among panel manufacturers.
Sales and Forecast Units of Nikon Steppers & Scanners
| Q1: | What were Nikon’s activities in the Precision Equipment Business during the year ended March 2009? |
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| A1: | In the IC steppers and scanners field, the Company took steps to expand sales of cutting-edge equipment such as the NSR-S610C ArF immersion scanner (the world's first scanner capable of mass production of semiconductors at 45 nm applications and beyond), and marketed EUV lithography equipment (extreme ultraviolet system for research and development) that enables further device shrinkage. In the LCD steppers and scanners field, Nikon worked to expand sales of the existing FX-65S model for lithographic exposure of 6th generation glass plates, as well as the FX-903N model, which is ideally suited for the manufacture of the small to medium-sized high-precision liquid crystal displays used in cell phones and automotive electronic devices. In addition, we initiated shipments of FX-101S lithography equipment, which is compatible with 10th generation glass plates. We also continued our concerted efforts throughout the Precision Equipment Company to boost cost-competitiveness by shortening manufacturing periods, as well as adopting simplified designs and common platforms. |
| Q2: | What is the current status of development of IC steppers and scanners to support next-generation lithography technologies? |
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| A2: | Despite the difficult business environment for IC steppers and scanners, for the year ending March 2010 Nikon is focusing on double patterning*, one of the most promising next-generation lithography techniques. Specifically, we are developing an ArF immersion scanner for double patterning that will allow for 32 nm device production. For successful development, two issues must be resolved.
The first is improvement in alignment accuracy. Since double patterning involves the overlaying of two layers to create the pattern, alignment requires extreme precision. Currently, the alignment accuracy requirement is around 7 nm, but double patterning will require a reduction to half or even one-third of that figure. The second issue is enhancing throughput (the number of wafers exposed in a given period). Since double patterning consists of two exposures, the throughput must be doubled to maintain the current level of productivity in the customer's manufacturing process. The NSR-S620 ArF immersion scanner for mass production with double patterning that Nikon will introduce utilizes new concepts that will provide the necessary precision and throughput. This system will be extremely competitive not only in terms of precision alignment but also in offering an exceptional throughput level, an aspect in which our rival has been considered superior. We plan to begin shipments in the third quarter of the year ending March 2010 (October to December 2009). We have adopted a new design concept for the NSR-S620 in which the overall system is created from 13 individual modules, allowing for a considerably shorter period from shipment to operation at the customer's site. Currently Nikon is constructing a new building at the Kumagaya Plant with a highly efficient clean room that will be used to produce the NSR-S620 and enhance its competitiveness. With the focus of effort on the NSR-S620, Nikon seeks to quickly gain a leading share of the market for high-end IC steppers and scanners. Note: * Double patterning is a lithography technique in which a single, dense circuit pattern is split into two coarser patterns that can be exposed separately. The two patterns can then be overlaid on the wafer, providing a final, dense circuit pattern. |
| Q3: | What are you doing to meet market needs for LCD steppers and scanners, and what is Nikon’s position in the market? |
| A3: | The ability to adapt to ever-larger sizes has become one of the main points of focus for LCD steppers and scanners. The latest FX-101S lithography system, which Nikon began shipping in the year ended March 2009, is compatible with 10th generation glass plates that measure approximately 3 meters on a side. It was designed to allow for efficient manufacturing of large-scale panels 50 inches in size or larger. Along with the latent demand for large-screen televisions, LCD lithography equipment compatible with 10th generation glass plates is expected to lower the price of televisions by reducing costs of LCD panels. This combination of factors will likely drive more widespread adoption of LCD televisions. As the trend toward increasingly larger glass plates continues, Nikon's LCD steppers and scanners utilizing multi-lens projection optical systems will allow us to quickly meet the needs that arise, securing our leading position in the market. |
| Q4: | What are your plans for structural reform, and your outlook regarding the scale of the market in the future? |
| A4: | The Precision Equipment Company sees the year ending March 2010 as an essential period for structural reform. We will identify the issues we face, find the solutions, and thereby strengthen our corporate structure. In May 2009, we decided to implement sweeping measures to reduce fixed costs. Specifically, we will reorganize and consolidate our four production subsidiaries in Japan into two companies by October 2009, while unifying and streamlining as much as possible the marketing and servicing operations of our two overseas subsidiaries in the United States and Europe. Furthermore, in Japan and Asia we are pursuing a more efficient business by scaling back operations in line with the business scale. We anticipate that these measures will cut fixed costs by approximately ¥8 billion. The markets for IC steppers and scanners and LCD steppers and scanners are cyclical. For IC steppers and scanners, despite sales of 296 units in 2008 (calendar year, new systems only), we forecast that the market will shrink considerably to around 90 units in 2009, reflecting the slump in worldwide demand. We anticipate that the market will recover thereafter, reaching 170 units in 2011. Similarly for LCD steppers and scanners, after sales of 110 units in 2008 (calendar year, TFT array use only), we anticipate a market for 70 units in 2009, and 80 units in 2011. The Precision Equipment Company recognizes the year ending March 2010 as the period in which we will lower our break-even point through aggressive efforts to reorganize and revise our corporate structure to make a profit even in the bottom of a predicted market cycle. |
| Q5: | What will be the focus of product development going forward? |
| A5: | In IC steppers and scanners, for the immediate future we will focus all efforts on double patterning. For next-generation EUV lithography equipment, rather than developing pre-production lithography tools for which light sources, photomasks and other aspects of the infrastructure have yet to be fully established, for now we will concentrate on developing the basic technology in preparation for the eventual progression to mass production. For LCD steppers and scanners, we will continue to adapt to ever-larger panels and develop systems that enable further cost reduction in panels. Nikon's policy calls for narrowing the focus of its R&D program, clarifying research priorities, and making the necessary investments to ensure superiority in product competitiveness. |
