Originally, SVG was supposed to deliver to Intel its so-called Micrascan 193 high-numerical aperture (HNA) scanners in April. But in April, SVG said it would delay the shipment schedule from April to this month (see April 25 story ). Earlier this year, ASML of the Netherlands acquired SVG of San Jose for $1.6 billion.

At the Semicon West show here, however, the company confirmed that it will not ship the Micrascan 193 tool until "October," said Douglas Marsh, vice president of business integration for ASML of the Netherlands.

Marsh declined to elaborate, but the delay may have had an impact on the company's bottom line. Today, ASML reported disappointing results in the first half of this year (see today's story ).

But SVG's shipment delays also represents a possible setback for its main customer--Intel. For years, Intel has relied on two scanner makers--Nikon Corp of Japan and SVG. Both Nikon and ASML's SVG unit have separately shipped 193- and 248-nm tools to Intel, sources said.

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.

Nikon reportedly has already shipped a 193-nm tool to Intel. In any case, the 193-nm scanners are supposed to help Intel develop Pentium 4 microprocessors and other chips at 130-nm (0.13-micron) node and below, sources said.

Supposedly, the 193-nm systems will be involved in an elaborate "mix-and-match'' manufacturing process with other lithography tools in that fab, reportedly including 248-nm scanners from both SVG and Nikon Corp., sources said.

In recent interviews, Intel executives have flatly denied that SVG's shipment delays would impact the company's push towards 130-nm technology. But analysts believe that Intel may be running out of patience with ASML's SVG unit, prompting the chip giant to possibly evaluate competitive scanners.

In an interview at the Semicon West trade show, Bob Bruck, director of equipment procurement at Intel, declined to comment on SVG's shipment delays.

But Bruck hinted that there could be a certain timetable for ASML's SVG unit to ship the 193-nm tool. "We have a window,'' he said. "We are working with our equipment supplier."

He did not elaborate. A source close to the Intel lithography situation said while the firm is waiting for the delayed SVGL tools, it can use a technique called hard phase shift masks with its current lithography systems to reach 0.13-micron feature sizes on chips.

However, unless Intel had been developing phase shift mask processing earlier, it would take additional time for the firm to qualify this alternate approach, equipment 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.