The decision kills a key product platform acquired by ASML earlier this year when it completed its purchase of Silicon Valley Group Inc. for $1.6 billion in stock. The decision also comes more than several months after an Intel manager told SBN that his company was dropping plans to use the SVG Micrascan V in production fabs, following a number of delays in delivery of the first tools (see July 31 story).

After months of speculation about the fate of the delayed Micrascan V tool, ASML today said it will discontinue development and shipment of the system before the end of this year.

Instead of supporting two 193-nm step-and-scan exposure platforms, the Veldhoven-based lithography supplier said it will concentrate on its Twinscan AT:1100 system. Officially introduced last summer, the Twinscan AT:1100 is the dual-stage scanner developed for volume production applications in 300-mm wafer fabs. ASML says the system has the industry's highest numerical aperture ArF (argon-fluoride) lens (see July 8 story).

"Our decision was made after close consultation with customers and we expect to ship our Twinscan AT:1100 product in early 2002 as a result of that," said Doug Dunn, president and CEO of ASML. "It is very important for ASML to concentrate our talent and leading edge technology on one platform, the industry standard Twinscan."

The company did not mention Intel's status as a customer for Twinscan systems, but many industry observers have indicated that the microprocessor giant is considering ASML's 193-nm tool as a replacement for the ill-fated Micrascan V in next-generation production lines. Intel also uses exposure tools from Nikon Corp., and it reportedly opened up the competition last summer for its 193-nm business after deciding to drop the Micrascan V from its roadmap.

The use of a 193-nm exposure tool promises to help ease Intel's migration to next-generation processes with feature sizes below 0.13 micron. Lithography systems based on ArF 193-nm technology will reduce the need for complex and expensive phase-shifting photomasks and other techniques now employed to extend the use of today's 248-nm scanners. Intel has repeatedly denied that delays in the Micrascan V have impacted its move to 0.13-micron processes, but other industry sources have disagreed, contending that the lack of 193-nm tools has increased overall costs for leading-edge microprocessors.

ASML said it will transfer Twinscan manufacturing capabilities and certain R&D programs from the Netherlands to Wilton, Conn., where SVG Lithography had been based prior to its purchase by the Dutch company. ASML said the transfer will "optimize" its industrial base in the United States. The move will also help the company maintain commitments to the U.S. government, which approved the acquisition of SVG on the condition that lithography development be maintained in the country by ASML (see May 3 story).

The Twinscan platform features a dual-wafer stage design that enables it to expose one substrate while aligning another for exposure. This parallel design results in higher throughput through the step-and-scan 193-nm system, according to ASML, which says the AT:1100 tool is capable of providing exposures with resolutions down to 100 nm (0.10 micron).