X-bit Labs picked up chatter from a financial analyst that extreme ultraviolet (EUV) lithography may be late again and that many chipmakers are likely to stick to other methods to shrink transistor size, including multiple patterning, new materials and structures. As a result, ASML Holding, the main developer of EUV tools will suffer from limited demand, said Mahesh Sanganeria, an analyst with RBC Capital Markets.
“Absent EUV, we believe the current stock price discounts inflection in earnings driven by rising Litho intensity from Litho-Etch-Litho-Etch (LELE) Multiple Patterning (MP) which is overly optimistic, in our opinion. We expect the industry to move to increasing adoption of Self-Aligned-Double-Patterning (SADP), new materials and structures which will have an offsetting impact,” said Mahesh Sanganeria, an analyst with RBC Capital Markets, in a note to clients, reports Tech Trader Daily.
Nikon, the arch-rival of ASML, is reportedly shipping “close to 10 (7 immersion and 3 dry) scanner to Intel for 14nm technology ramp”, whereas ASML is shipping current-gen scanners primarily to TSMC, which needs to ramp up production of chips using 28nm and 20nm process technologies, which do not need EUV.