Wednesday December 6, 3:15 am Eastern Time
ASML breaks into Japanese market
(UPDATE: Adds details, analysis)
By Philip Blenkinsop
AMSTERDAM, Dec 6 (Reuters) - ASM Lithography NV (NasdaqNM:ASML - news), one of the world's largest semi-conductor equipment makers, said on Wednesday it had broken into the Japanese market with a multiple order from one of the country's major chip manufacturer.
The deal is a significant coup for the aggressive Dutch firm, which has struggled to penetrate Japan's market due to the the dominance of its chief competitors Nikon and Canon .
ASML said the order was for multiple PAS 5500/750 deep ultraviolet and PAS 5500/450 i-line step and scan tools. The customer, which ASML did not name, would use the machines for volume production of logic and memory devices. Installations would begin in December.
ASML shares jumped 6.97 percent to 28.24 euros in early trade on the Amsterdam bourse.
``It's very good news. It's the second largest market in the world and a market with a lot of communication and consumer chips. In all aspects it's good. We've reiterated our buy recommendation this morning with a short-term price target of 45 euros,'' said Rabo Securities analyst Frits de Vries.
Access to Japan, which represents about 20 percent of the world market, is ASML's second notable success in recent months. In October, it announced it would buy world number four lithography firm Silicon Valley Group (NasdaqNM:SVGI - news) (SVG).
Once the deal with SVG is finalised, it will catapult ASML into the world number one spot above Nikon, as well as adding key customer Intel (NasdaqNM:INTC - news), the world's largest chipmaker.
ASML makes scanners and steppers, or lithography systems, machines which print out semiconductor circuitry on silicon wafers. The world market for lithography is expected to total around $7.5 billion in 2002.
It said its sales agent Nissei Sangyo would provide field support to Japanese customers in combination with ASML's head office in Tokyo.
ASML also announced it had streamlined the performance of its TWINSCAN system. TWINSCAN, which will make chips on next generation 300 millimetre wafers, can now process two wafers at the same time, speeding up production.
ASML's most advanced scanners sell for about nine million euros. Philips Electronics holds a minority stake in the firm |
