ASML says entry into LCD steppers still uncertain
Tue May 17, 2005 11:31 AM ET
SAN FRANCISCO, May 17 (Reuters) - Dutch chip equipment maker ASML (ASML.AS: Quote, Profile, Research) (ASML.O: Quote, Profile, Research) said on Tuesday that two key customers had embraced its technology to make liquid crystal displays (LCDs), but that this was no guarantee it would enter that market.
"At the moment it's still a 50/50. We will not do something foolish for ego purposes," Chief Executive Eric Meurice said at an investors conference organised by JP Morgan.
"The good news is that the two customers in question -- LG Philips LCD (034220.KS: Quote, Profile, Research) and Samsung Electronics (005930.KS: Quote, Profile, Research) -- have recognized that our mouse trap is ... good and they have put proposals for co-funding of the research and development and the proposal for commitment of volume," he said.
"(But) the bad news is the level of commitment of co-funding and commitment on units is we assume not good enough to meet the other two targets: dilution to earnings and return on investment," Meurice said.
"We are going one more time at it in discussion," he said, adding that his firm will take a decision before July.
Canon (7751.T: Quote, Profile, Research) and Nikon (7731.T: Quote, Profile, Research) , ASML's main competitors in the chip stepper business, are currently the only two companies that make machines to produce LCD screens. |
