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Memory glut hits lithography tool shipments |
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Jun 29, 2007 at 02:33 PM |
 Micron Technology executives said during the company's third quarter conference call that they believed memory capacity additions in both DRAM and NAND flash markets were slowing, while demand had remained strong in the last quarter with a seasonal demand boost looming.
However, in questioning by financial analysts as to the validity of comments made about slowing capacity additions, Kipp Bedard, Micron's VP of Investor Relations, said: "One of the things we look at are stepper shipments. If you look at the public reports by a couple of the major ones, here are some of the numbers to keep in mind. They were originally planning on shipping mid-80 steppers in Q1 from one particular company. They shipped 50-some and they are guiding in calendar Q2 as 30-some. So a pretty significant reduction in the anticipated leading-edge equipment that you have to have before you can add significant supply. So that's another side note to why we think supply is easing going forward."
Although Bedard did not name the particular lithography vendor and his projections do not align with those of either ASML or Nikon, it should be noted that ASML is a major supplier to Micron and IM Flash Technologies including immersion lithography tools for Micron's 50nm NAND flash ramp, expected shortly as qualification has proved successful.
Major memory manufacturers have been aggressive in spending allotted capital on new fab equipment early in 2007 to be ready for the anticipated seasonal demand in the second half of the year. However, rumors from a wide range of sources indicate that push-outs of tool orders stretch though to the fourth quarter of 2007, impacting expected shipments of lithography tools as well as other front-end tool sets.
DRAM-focused lithography tools being affected include i-line and KrF steppers, while NAND fabs retain the majority of 193nm Arf immersion tool deliveries as 50nm production enters its early ramp phase. However, 193nm Arf dry tools are being affected by fabs adjusting capacity needs and falling ASPs.
Micron executives also noted its planned capital spending of US$4 billion for 2007 would not be affected by the US$225 million loss in the quarter and was on track to significantly add capacity, especially for NAND as it is spending on equipping its NAND fab in Lehi.
However, Micron detailed CapEx plans for the 2008 financial year, noting that a significant spending cut would be made with plans to spend US$2.5 billion of which US$500 million would come from ‘partners' - one of which is believed to be Intel's JV business IM Flash Technologies.
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