10:42 ET Cymer: Intel roadmap decision seen as positive for CYMI (CYMI) 27.09 -1.05: Adams Harkness believes that Intel decision to drop planned adoption of 157nn lithography as a positive for CYMI, as it allows co to drop R&D efforts on its F2 products and decreases the likelihood of a competitor taking significant share with a new 157nn product
Seems Adams Harness has never heard about project management !
First the removal of F2 actually removes an opportunity to increase prices significantly.
Second, since the XL has been developed as a multi platform product, the portion of the costs that were supposed to be allocated to the XLF will have to be re-allocated to the 193 and to the 248 nm product, if it ever sees the light.
Margin was not that great. It will simply get worse !
In addition to this, if one read the last paragraph of the articles in Silicon Strategies, it is mentioned Intel will strengthen its activity in resolution enhancement technologies (RET) such as Off axis illumination + OPC + Phase shift. In other words, the value of the shrink shifts from the laser to RETs.
In the end, a system price increase will become ever more difficult to justify when your customers see less and less value in your product. The premium will go to those technologies that will enable Fabs to extend the lifetime of their current equipments, pushing those to their very limit, without having to re-invest continuously. True across the board, that will be particularly critical in photolithography which typically represents some 25 to 35% of the total capital expenditures of a Fab.