Production Capacity Expansion for ArF Immersion Scanners

Nikon Corporation to Build Two New Buildings for Production of IC Steppers and Scanners

August 6, 2008

Nikon Corporation (Michio Kariya, President) will build two new buildings, one in its Kumagaya Plant and one at its subsidiary, Tochigi Nikon Precision Co., Ltd., enhancing production capacity to meet the rapidly growing demand for its ArF immersion scanners. The Kumagaya Plant and Tochigi Nikon Precision Co., Ltd. have been the major locations for R&D and manufacturing of Nikon's IC steppers and scanners. With these new buildings, Nikon will improve its overall production efficiency of lithography tools, and its production capacity for ArF immersion scanners will increase to the level of 90 systems a year, more than twice the current capacity.
The total investment for both buildings and production equipment for this capacity expansion is estimated to amount to approximately 35 billion yen over 3 years beginning this fiscal year.

Background

Although overall capital expenditure for IC production equipment is expected to slow this year, capital investment for ArF immersion scanners, the leading-edge system essential for device miniaturization, remains stable. ArF immersion scanners are now used mainly for mass production of NAND flash memory, but logic and DRAM manufacturers are expected to introduce them into production in the near future.

Nikon's ArF immersion scanners excel in their advanced design to eliminate immersion-induced defects and their compatibility with the topcoat-less resist process. Nikon has been promoting sales of its scanners with these superior technological capabilities and recently received a large inquiry for them. After careful consideration of this inquiry, Nikon has decided to build new buildings in two manufacturing locations for enhancement of production and supply capacity.

In addition to providing clean room space for manufacturing, the two new buildings will have space for the development of next-generation systems, and areas to allow for evaluation of scanners under the same conditions as customer factories. These facilities will strengthen Nikon's R&D capability as well as customers' satisfaction.

Outline of new buildings in Kumagaya Plant and Tochigi Nikon Precision Co., Ltd.

Location (Kumagaya Plant) 201-9, Miizugahara, Kumagaya, Saitama 228-0828, Japan
Location (Tochigi Nikon Precision co., Ltd.) 760, Midori, Otawara, Tochigi 324-8520, Japan
Total surface of new buildings approx.16,000 square meters
Operation start December 2009 (estimated)

The information is current as of the date of publication. It is subject to change without notice.