Dutch ASML sees no improvement in chip demand
Thu Mar 24, 2005 10:30 AM ET
By Lucas van Grinsven
EINDHOVEN, Netherlands (Reuters) - Dutch chip equipment maker ASML (ASML.AS: Quote, Profile, Research) (ASML.O: Quote, Profile, Research) said on Thursday it sees no major demand improvement for semiconductors and that low capacity utilization at its customers continued to create an uncertain market for its machines.
"The number of chips sold is reducing and at one point this may translate in fewer machines sold," Chief Executive Eric Meurice said at the annual general meeting of the world's biggest chip lithography machines maker.
"Very naturally if our customers are not producing chips, their utilization rate falls. It's around 80 percent, and that's not a dramatic situation like 2001 when it was around 50 percent. But if you're a semiconductor company you're probably not thinking about adding capacity at the moment," Meurice said.
"We don't know what the second half is going to look like," he added, reiterating that he was cautious about the market as he had been in January.
But he saw a silver lining in low inventories.
"The good news is that there doesn't seem to be a lot of inventory (anymore)," Meurice said.
Market research firms said earlier this week that chip inventories were back at normal levels after electronics goods makers had started getting rid of inventories in the fourth quarter of 2004.
Meurice said chip market revenue growth forecasts for 2005 from various market research groups varied between a 6 percent drop and a 9 percent rise, and this could mean the market for chip lithography machines could vary between 400 and 500 units.
ASML, which claims around 50 percent of all the dollars spent on chip litho equipment, competes with Japanese rivals Canon (7751.T: Quote, Profile, Research) and Nikon (7731.T: Quote, Profile, Research) .
Meurice reiterated that ASML would decide before July if it would start producing machines to manufacture flat displays, a market segment currently served only by Canon and Nikon.
"We're confirming we have a good concept that adds value. We are at this very moment progressing with discussions to get commitments from potential customers," he said.
He also said ASML was getting ready to ship its fourth generation of 'immersion' lithography machines in early 2006. This marks the company's attempt to deliver high volume versions of these machines that use water between the silicon wafer and the lens for finer geometries.
A completely redesigned machine, using a new light source called Extreme Ultra Violet (EUV) for even finer chip circuits, would be at the prototype stage after the first half of 2006. |
