Lithography's Silicon Valley Group
                           unit has quietly once again delayed
                           the shipments of its latest tools
                           based on 193-nm, argon-fluoride
                           (ArF) technology by another three to
                           four months, a move that impacts its
                           sole customer--Intel Corp....

                           ...Ironically, ASML sells a separate line of 193-nm tools. And
                           one of ASML's key 193- and 248-nm tool customers is Intel's
                           processor rival--Advanced Micro Devices Inc. 

                           For months, however, Intel has been counting on the
                           delivery of SVG's Micracan 193 tool. The Micrascan 193 HNA
                           system--which is designed to process chips at the 100-nm
                           node--is reportedly headed to Intel's 300-mm development
                           fab in Hillsboro, Ore., dubbed D1C, sources said...

                           ..Phase shift masks are also more expensive to use and will
                           only run up Intel's already high Pentium 4 production costs,
                           until it could bring on its originally planned 193-nm
                           lithography systems. 

                           Archrival AMD is adapting its existing ASML lithography tools
                           with improved optical lenses that can produce 0.13-micron
                           feature sizes on chips without use of hard phase shift
                           masks. 

                           AMD is planning to ramp up its own 0.13-micron processing
                           in Fab 30 in Dresden, Germany, by the end of the year.