ASML Holding N.V. CEO Discusses Q3 2010 Results – Earnings Call Transcript

1287378016 31 ASML Holding N.V. CEO Discusses Q3 2010 Results   Earnings Call Transcript


(Operator instructions) The first question is coming from Mr. Gunnar Plagge. State your company name followed by your question, please.

Gunnar PlaggeNomura

Yes, hello, it’s Nomura. thanks for taking my question and congratulations to the results. Maybe if we look at your three main systems, and we look back what you said in July, could you maybe give us your view what has changed for DRAM, for NAND, and for Foundry over the last three months?

Eric Meurice

Well, thank you for your congratulations. in fact, as you have heard failed to understand that there is some softening in the pricing arena on DRAM and NAND sector. but none of that has impacted at all the booking run rates, because again most of our customers are seeing this as a temporary seasonal adjustment which they will adjust through prices and they will not adjust through neither units nor weakened technology transitions.

So, in the DRAM and NAND sectors, clearly these softening that you’ve seen are considered short-term. in the Foundry business or the IDM business, clearly there have not been any changes. You’ve heard a bit of PC weakening in the August time frame when I think Intel made a judgment, but this hasn’t again impacted any of our traditional customers.

Gunnar PlaggeNomura

Maybe as a follow-up and what we’ve heard over the last couple of weeks, couple of times was that customers from the Logic side have said, given that throughput at production speed is substantially lower it doesn’t really matter so much whether you use a competitive product or maybe the NXT. I was just wondering have you heard that as well and is that maybe a fair point or –?

Eric Meurice

The reasons why people like our products like the NXT is in fact twofold. One is NXT has a precision which is summarized by CD and overlay performance which is unique in the market, and at this moment this overlay and CD performance seems to be a fundamental for successful yield. So, no matter what the throughput is, in fact CD and overlays are fundamental requirement.

But on the other hand, you don’t misunderstand the point in the fab, a DRAM guy would be able to run the machine at say 92%, 95% of the time at maximum speed. in a logic arena the numbers would be more like 40% of the time at say 80% of the speed, but it is still a percentage of the capability of the machine. So, if your machine is capable of a lot of wafers, even if you run it at 40% for a lot of reasons, logistics and technology, you still are making more money out of a machine that run fast than at a machine that doesn’t.

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