Positive CYMI Article (Long)
10 Years Of Excimer Laser R&D But What Technology Lies Ahead?
By Dylan McGrath
San Diego--It may have taken longer than its founders had hoped, but one San
Diego company is finally reaping the benefits of years of hard work. After 10
years of development, Cymer, Inc.--which produces excimer laser light sources
for use in deep-submicron (DSM) wafer steppers and scanners--is finally basking
in the light at the end of the tunnel.
From about 1986 to 1995, we were enduring a very lengthy process development
phase, said Robert Akins, Cymer president and CEO. "We originally anticipated
that excimers would be the light source of choice for lithography, starting at
about 0.5-micron dimensions. We were very incorrect in that assumption, because
I-line mercury bulbs were extended to 0.5-micron and substantially below. The
entry point for excimers got pushed off to the 0.25-micron dimension. We've had
a long history; almost 10 years of technology development and market
evelopmental positioning before the real opportunity began."
But the real opportunity has certainly come knocking. Cymer's $203 million in
1997 revenue represented a 213 percent increase over the company's $65 million
in 1996 revenue. In 1995, the company had just $19 million in revenue. In two
years, its revenue, and seemingly its importance, have grown by 10x.
In the early 1980s, Mr. Akins and fellow founder Rick Sandstrom, now Cymer's VP
of advanced research, were part of a team at work on an excimer laser for use in
the "Star Wars" strategic defense program. In the mid-1980s, convinced that DUV
would triumph over X-ray technology for the DSM era, Messrs. Akins and Sandstrom
decided to develop and apply their laser technology in the area of
microlithography. For the next 10 years, while the company waited for the
semiconductor world to be ready for excimer light sources, Cymer further
developed the technology to make sure that it would be ready for the
semiconductor world.
The Decisive Moment
For a technology development standpoint and a market share garnering standpoint,
we started the company at the right time, Mr. Akins said. "It took a long time
to get a robust technology. Because we were early and could play in all the
process development phases, we were able to get very high market share while the
market was still small. From a financial standpoint, it would have been easier
to start the company in 1990 or 1992 and not have as many years of no growth to
contend with. If we had waited that long, some other company
would have positioned itself as the company of choice and it would have been
very difficult for us to come in and change the dynamics of the industry."
Cymer's 5000 series of excimer lasers are used in wafer steppers and scanners
for DSM processes. Cymer's customer list begins and ends with the world's four
major stepper/scanner-producing companies: Nikon, Canon, ASM Lithography and SVG
Lithography. As semiconductor companies increasingly shrink their chips in order
to get the most out of each wafer, DSM processes are entering their
heyday. Companies need DSM steppers and scanners, and DSM steppers and scanners
need excimer lasers.
Cymer, according to Pascal Didier, senior VP of worldwide customer operations,
commands an 88-95 percent share of the worldwide excimer laser market. Although
Komatsu Ltd. and Lambda Physik also produce excimer lasers, Cymer isn't exactly
feeling the heat. "Do we have competition?" Mr. Didier asked. "Yes. But is it a
competition in mass production? No. I think we have a 100 percent
production share."
In some ways, Cymer must cash in on its 10 years of technology development while
it can. DSM lithography's reign as the cutting-edge champion could be
approximately 10 years. Crucial industry debate is under way about which
technology will replace optical lithography as the state of the art. Several
candidates have emerged as possibilities, but none use excimer lasers as the
light source. In fact, Mr. Akins concedes excimer lasers will not be
incorporated into steppers and scanners beyond optical lithography.
Does that mean Cymer is near its end? Mr. Akins points out that, while optical
lithography will eventually be replaced at the cutting edge, many non-critical
layers will continue to need photolithography. And photolithography will
continue to be powered by the excimer laser. Mr. Akins even hints that a new
product may be on the way from Cymer, one that would be targeted at post-optical
lithography. "We have been very vague on the subject and will continue to be so,
but we are in the design concept phase of 13.2-nanometer EUV
(extreme ultraviolet), 'soft' X-ray light source," he said. "We think there is
an excellent chance there may be a big market for that."
Of course, things haven't all been fun and games for Cymer. In September 1997,
reports began circulating about Cymer when word surfaced that a customer had
pushed out on order. Analysts and insiders alike wondered whether a flaw in
Cymer's technology had been spotted. The rumor mills heated up. "As a new public
company, we didn't get out in front of a few events with enough guiding
information, enough facts," Mr. Akins said. "We let the marketplace speculate a
little too long and the rumors took on a life of their own. We weren't out in
front leading the market with facts, so they created some of their own."
Cymer's stock price began taking a dive around that time. Mr. Akins said that
added fire to the rumors, but explained that the stock price had gotten ahead of
the company's success. Lately, though, the stock price has begun to rally
somewhat. About midweek last week, it sat at $21, a healthy push up from the
52-week low of less than $14.50, but still a far cry from the 52-week high of
$49.25. Although Cymer's stock has begun to recover and to a large extent the
industry's confidence in Cymer is back, Mr. Akins doesn't quite believe the
effects of the rumors have completely worn off. "I don't know that it's all
behind us," he said. "I think people will remember that because it
was a noticeable financial event. In a real way, I think it is behind us."
Challenge Ahead
The biggest challenge facing Cymer in 1998, according to Mr. Akins, is,
ironically, its own growth. While revenues have skyrocketed, so too has the
number of facilities, employees and plans. Mr. Akins said he knows Cymer will
have to manage its growth carefully to stay in control of the company.
Like many companies in the industry, Cymer will feel the effects the Asian
financial crisis (AFC). In a financial statement released last month, Mr. Akins
said the AFC combined with the slide of DRAM prices has Cymer anticipating a
10-15 percent reduction in revenues for 1Q98. But, according to Mr. Didier,
Cymer should be somewhat insulated in respect to other companies. "Everybody has
to be concerned when Asia has a problem," he said. "But what's good about being
on the high side of technology is these things affect you less.
People are still going to have to buy DUV steppers, and DUV steppers are still
going to need excimer lasers."
With the long and sometimes stagnant climb to the top behind it--and with the
market seemingly cornered on a key technology--Cymer now stands as a booming
semiconductor equipment company that should only get more successful in the
immediate future. Recently, the company retooled its management team, replacing
laser technology experts with veteran semiconductor equipment executives.
Bordering on the height of its glory, Cymer is a company in transition: from a
pure technology company to an all-around equipment company. |
