Last month, SVG confirmed a three-to-four month delay in shipment of its new scanner, which is based on 193-nm, argon-fluoride (ArF) laser technology (see April 25 story). The delay is impacting Intel and other customers.

SVG's new 193-nm step-and-scan systems will be first used in Intel's most advanced 8-inch (200-mm) wafer fabs, but industry sources also expect them to be installed in the company's 300-mm development facility in Hillsboro.

While Intel declined to identify the vendors on its list of qualified 300-mm tools, sources said the company plans to use two lithography suppliers to equip its D1C development facility. These suppliers are Intel's existing sources of 200-mm lithography systems--SVG of San Jose and Nikon Corp. of Japan.

The Santa Clara, Calif., chip giant plans to utilize a mix-and-match strategy by using both 193- and 248-nm tools from these two vendors.

During briefings in Hillsboro, Intel executives downplayed the delay in SVG's 193-nm scanners, saying it will not impact the company's ability to ramp up production 300-mm wafer fabs. Company executives also denied reports that said SVG's tool delay would impact Intel's migration to 0.13-micron technology (see April 27 story).

"The various press reports are wrong," insisted Sunlin Chou, senior vice president and general manager of the Technology and Manufacturing Group, during a question/answer session while discussing Intel's 300-mm strategy on Friday.

The SVG tool delays "have not impacted our migration to 0.13-micron technology," Chou told reporters and analysts. "Our 0.13-micron migration is doing well."

Chou acknowledged that Intel has known about SVG's 193-nm tool delays for some time. But he noted the Santa Clara, Calif.-based chip giant has already made the adjustments to prepare for the shipment delays.

In its 8-inch plants, Intel has already moved to extend the capabilities of current 248-nm scanners by using phase-shifting photomasks, company executive said.

In fact, Intel's flexible chip-manufacturing strategy enables the company to "make changes" in terms of tool vendors and technologies--if needed, Chou said.

In its 300-mm fabs, Intel hopes to make use of 193- and 248-nm scanners from both SVG and Nikon.

Sources also believe that Intel will use chemical vapor deposition (CVD) equipment from Applied Materials Inc. and plasma-etch systems from Hitachi Ltd. Intel is also using wafer-inspection gear from KLA-Tencor Inc. Company officials declined to comment on its tool suppliers.