Here are a couple of snippets from the last conference call (I put the whole thing at cymerian.com that pertain to this issue:
Second, demand for second-source critical suppliers is ultimately driven by the semiconductor industry in its ongoing drive to manage risks and costs. Clearly, Cymer's DUV light source business falls into this critical category. Going forward, no level of execution on our part will change the fundamental decision for second sources. However, our execution to the strategies I mentioned will strongly influence the division of business between ourselves and our competitors. As the business expands, so does both Cymer and competitive activity. But the ultimate winner is the supplier who provides not only product leadership, but also world-class service and infrastructure as demonstrated today by our market share.
-AND-
Our strategy is to compete on value, not price. As the total market grows, there will be some growth in the price-driven segment that we recognize will go to our competitors. In that sense, we expect to have a controlled loss of market share going forward. For example, we understand the largest domestic DRAM manufacturer will take delivery of some lithography tools with light sources from our German competitor over the course of the next few quarters. On the other hand, we are committed to maintaining our overall leadership position in the industry. |
