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Technology Stocks : General Lithography

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To: Andrew Vance who wrote (546)	9/4/1997 10:17:00 PM
From: Sam Citron	of 1305

Andrew, Thread, RE: STEPPER ALLOCATIONS I understand that every stepper manufacturer in the world from Nikon and Canon to ASM and SVGL is heavily back-ordered. What exactly is the nature of the bottleneck? Is it the supply of reduction lenses or some other constraint? Corning today announced that it is building a new factory for the production of ultra-pure fused silica to be used mainly in the production of reduction lenses used for steppers. biz.yahoo.com Corning's biggest customers for this specialty glass are Canon and Nikon. I have been informed that Corning doubled its capacity for this product in June and this new factory has the potential to double it again by the year 2002, with about 20% incremental production capacity each intervening year. Corning told me that shortage of ultra pure fused silica has been a critical bottleneck in the production of steppers but could not confirm whether this was the only bottleneck present. Anyone else know? SC

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