Micronic Laser Systems AB
Annual Report 2008
.*$30/*$-"4&34:45&.4rANNUALREPORT 2008
Omslag ENG.indd 1 09-03-10 16.41.54
FINANCIAL CALENDAR
Interim report January–March, April 21 Interim report January–June, July 8
Interim report January–September, October 16
NOTICE OF AGMThe Annual General Meeting (AGM) will be held at 5 p.m. on Wednesday, April 1, 2009, at Näsby Slott in Täby.
RIGHT TO PARTICIPATE
In order to participate in the AGM, shareholders must be entered in the share register maintained by VPC AB (the Nordic Central Securities Depository) not later than March 26, 2009, and must notify the company of their intention to participate in the AGM not later than 12 p.m. on March 30, 2009.
REGISTR ATION
Shareholders can register by mail to Micronic Laser Systems AB (publ.), Box 3141, SE-183 03 Täby, Sweden, by telephone +46 (0)8-638 54 64 or by e-mail: ankie.jorgne@micronic.se. The registration should include the shareholder’s name, address, tele- phone number, personal or corporate identification number and registered shareholding.
1 Highlights of 2008 2 Comments by the CEO 4 The Micronic share 6 Micronic’s markets
10 Micronic’s long-term strategic model 12 Micronic’s operations and products
16 Micronic’s employees, environment and society 20 Micronic’s technology
24 Corporate governance report 30 Board of directors and auditor
32 Executive management and subsidiary presidents 34 Financial overview
69 Micronic’s history Glossary
FINANCIAL REPORTS
36 Report of the directors 38 Risks and risk management 40 Consolidated profit and loss account 40 Comments on the consolidated profit
and loss account
42 Consolidated cash flow statement 42 Consolidated balance sheet
43 Comments on the consolidated balance sheet and cash flow statement
43 Consolidated statement of changes in equity 44 Parent Company profit and loss account 44 Parent Company cash flow statement 45 Parent Company balance sheet
45 Parent Company statement of changes in equity 46 Additional information and notes
68 Audit report
Contents
MICRONIC 2008
The total number of flat panel displays forecasted for production in 2009 will have a combined surface area of 130 million m
2(DisplaySearch, January
2009), equal to 18,200 football fields. In the year 2000 the production of flat panel displays equaled to 600 football fields.
Cont e n ts
NOMINEE SHARES
To be entitled to participate in the AGM, shareholders whose shares are held in the name of a nominee must temporarily re-register the shares in their own names with VPC AB. Shareholders must notify their nominees in good time prior to March 26, 2009, at which time such registration must be completed.
NOTICE TO AT TEND
No later than four weeks prior to the AGM, a notice to attend the AGM will be published in Post- och Inrikes Tidningar and Svenska Dagbladet and will be posted on Micronic’s website www.micronic.se
FINANCIAL INFORMATIONThe annual report will be sent to all registered share- holders during week 12, 2009.
All financial reports and press releases can be viewed on Micronic’s website: www.micronic.se. It is also possible to subscribe for financial information and press releases via the website or directly from Micronic.
09-02-27 14.45.12
Omslag ENG.indd 2 09-03-10 16.42.04
Micronic in brief
Micronic Laser Systems is a Swedish high-tech company engaged in the development, manufacture and
marketing of one of the world’s most advanced production systems – the pattern generator. These are used by leading electronics companies worldwide to produce photomasks for the manufacture of products such as television and computer displays, semiconductor circuits and electronic packaging.
1. In order to manufacture electronic components such as displays, semi- conductor chips or electronic packaging, the component design, a pattern, must first be created in a CAD system and then transferred onto a photomask blank.
2. The component design is written with a Micronic pattern generator onto a photomask, a glass or quartz substrate coated with a light sensitive material.
3. The photomask functions in the same way as a negative in the photographic process, and a template is produced.
The size of both the pattern and photomask varies depending on the component to be manufactured. The more patterns that can be fit onto a photomask, the more cost-effective production is possible.
Left: Display photomask 1220 x 1400 mm.
Middle: Semiconductor photomask 6 x 6”.
Right: Photomask for electronic packaging 500 x 600 mm.
4. Using an exposure system, the photomask can now be repeatedly copied, or stepped, onto the substrate to be manufactured:
glass substrates for displays, silicon wafers for semiconductor chips, etc.
5. The electronic component is ready to be mounted in a TV, computer, cell phone, etc.
Left: Display panel in cross-section.
Middle: Semiconductor, for example a computer memory chip.
Right: The chip is packaged so that it can be connected to other electronic components.
MICROLITOGR APHY IS THE LINK BET WEEN DESIGN AND MASS PRODUCTION
Omslag ENG.indd 4 09-03-10 16.42.21
Micronic Far East Co Taiwan Micronic Japan K.K.
ATAC, Asian Technical and Applications Center Micronic’s headquarters
Sweden
Micronic Inc. USA Micronic Ltd.
South Korea
Fundamental drivers for Micronic
> Global consumer demand for new electronic devices
> Short product life cycles > Technological development > Cost-effective production MICRONIC’S BUSINESS CONCEPT
To offer pattern generation tools for the electronics industry based on optical solutions.
MICRONIC’S ROLE
Micronic’s pattern generators are used to write photomasks, which then function as templates for mass production of displays, semiconductor chips and electronic pack- aging.
Micronic’s pattern generators are a critical enabler for tomorrow’s products in imaging technology and electronics.
Micronic is setting the pace in product development through the use of next generation technology.
CUSTOMERS
Micronic has some major customers around the world. The majority of these,
percent, are found in Asia. The customers can be divided into two categories. The first consists of commercial or “merchant”
mask shops that are subcontractors to electronic manufacturers, such as Toppan, DNP and Hoya. The second category is made up of large electronics manufacturers with captive mask shops, like Intel, Samsung and LG.
MICRONIC IN EVERYDAY LIFE Many electronic devices and all displays contain components manufactured with a technology spearheaded by Micronic. In the fast-paced evolution of communication and media technology, increasingly large HDTV sets and super compact digital cameras with ever-growing pixel counts are two examples of how Micronic’s products are contributing to the technological advances taking place around us.
MICRONIC’S MARKET POSITION Micronic has a forefront position in the display market, where the company’s pattern generators and metrology systems are industry standard. This position has been achieved through patented state-of- the-art technology and an effective global customer service organization. Micronic’s competitive strengths are its strong tech- nological lead, high writing accuracy and superior productivity.
In the semiconductor market, Micronic is an established supplier that offers the market pattern generators for cost-effective production of photomasks for both leading edge semiconductor devices and volume production of simpler IC designs.
A niche market is that for advanced electronic packaging systems, a technology used to connect and protect semiconductor chips, where Micronic has a strong position.
Write speed and high quality are Micronic’s key competitive advantages in this market.
AFTER MARKET
The after market, consisting of service contracts, upgrades, add-on products and consulting services, is becoming an in- creasingly important part of Micronic’s business in pace with expansion of the in- stalled base. A smoothly functioning ser- vice organization is therefore vital for the entire company. In addition to the local service network, which is found close to the customers, Micronic has experts at the company’s tech center in Japan, ATAC, and at the head office in Täby, Sweden.
Micronic has delivered a total of more than 150 systems, of which 80 percent are found in Asia.
Omslag ENG.indd 5 09-03-10 16.42.28
7)/QMPPMSR
2IXWEPIW 3TIVEXMRKQEVKMR
7)/QMPPMSR
FINANCIAL OVERVIEW
2008 2007 2006 2005 2004 2003 2002
Net sales, SEK million 569 523 1,204 1,276 839 428 496
Gross margin, % 28.4 29.3 54.3 54.4 55.8 38.4 47.8
Operating profit/loss, SEK million –37 – 291 123 172 126 – 194 – 90 Operating margin, % –6.6 – 55.6 10.2 13.5 15.0 – 45.3 – 18.1 Adjusted operating margin, % –15.0 – 40.2 18.2 22.3 5.2 – 86.0 – 44.2 Order intake, including service, SEK million 378 634 604 1,306 945 1,086 459 Order backlog, December 31, SEK million 224 332 200 871 794 764 231 Earnings per share, before dilution, SEK –0.78 – 5.30 2.37 3.00 2.77 – 5.59 – 3.30 Earnings per share, after dilution, SEK –0.78 – 5.30 2.37 2.99 2.70 – 5.59 – 3.30
Average number of employees 398 416 462 415 359 312 299
MICRONIC 2008 1
r/FUTBMFTSFBDIFE4&,NJMMJPO
r5IFPQFSBUJOHMPTTXBT4&,NJMMJPO
r5IFPQFSBUJOHMPTTBEKVTUFEGPSDBQJUBMJ[BUJPOBOEBNPSUJ[BUJPO
PGEFWFMPQNFOUDPTUTXBT4&,NJMMJPO
r0SEFSJOUBLFBNPVOUFEUP4&,NJMMJPO
r(SPTTNBSHJOXBTQFSDFOU
r.JDSPOJDTIJQQFEUIFàSTU1SFYJTJPO BTZTUFNUIBUFOBCMFT
QIPUPNBTLXSJUJOHGPSOFYUHFOFSBUJPOEJTQMBZNBOVGBDUVSJOH (
r0SEFSTXFSFSFDFJWFEGPSUXPTZTUFNTGSPNUIF4JHNBTFSJFT
for the production of photomasks for the semiconductor industry.
r5IF'14MBTFSQBUUFSOHFOFSBUPSXBTMBVODIFEBOEJTUBSHFUFE
for production of photomasks for advanced electronic packaging applications.
r5IFQSPQFSUZJO5ÅCZXBTTPMEBOEJTCFJOHMFBTFECBDL
Highlights of 2008
Order intake
Net sales and operating margin
Net sales in 2008 by geographical market
Net sales in 2008 by application
Japan, 50%
USA, 19%
Rest of Asia, 31%
Display, 30%
Semiconductor, 28%
After market, 42%
5IFQIPUPTIPXTUIF1SFYJTJPOTZTUFNT9DBSSJBHFHVJEFECZ
GSJDUJPOGSFFBJSCFBSJOHTBOEDBSSZJOHUIFQBUUFSOHFOFSBUPS
final optics.
5IJTBOOVBMSFQPSUJTJOBMMSFTQFDUTBUSBOTMBUJPOPGUIF4XFEJTIBOOVBMSFQPSUQSFQBSFEJOBDDPS
EBODFXJUI4XFEJTIMBXTBOESFHVMBUJPOT*OUIFFWFOUPGBOZEJGGFSFODFCFUXFFOUIJTUSBOTMBUJPOBOE
UIF4XFEJTIPSJHJOBM UIF4XFEJTIBOOVBMSFQPSUTIBMMIBWFQSFDFEFODF
ighlight s of 2 0 0 8
B0LFURQLF$ŵ5B(1*B1<
MICRONIC 2008 2
Comments by the CEO
The strength of Micronic’s business lies in its offering of advanced display, semiconductor and electronic packaging products. Our pattern generators are based on a high technical content that creates added value for our customers, and their customers – in the form of both new features and lower production costs.
For many years, technological development in the electronics industry was fuelled by a need for new and more advanced function- ality, but is today driven primarily by the push for lower costs and higher efficiency.
Micronic works in a mature market that is fundamentally stable and expanding over time, but is highly cyclical. Like all mar- kets, it has been impacted by the current climate of financial uncertainty and eco- nomic slowing.
In response to a changing market, we intensified the focus on profitability dur- ing and adjusted the management structure to optimize the business agility and efficiency. Because the after market is gaining importance, its organization was reinforced at the management level.
We believe that the need for cost-cutting among our customers will be a top priority, and therefore an incentive for new invest- ments. For Micronic, which offers some of the world’s most advanced pattern generators, this is both an adaptation to the prevailing market conditions and a confirmation of our already strong position.
Micronic already has products ready for the next generation of both display and semiconductor photomasks, products that meet demand for lower photomask production costs. Our technological lead is also enabling us to cut back our R&D spending on existing products and free up resources for the development of products in new areas where we can diversify our business.
RESULTS FOR 2008
Net sales were up somewhat from the
level and reached SEK million. The op- erating loss was SEK million, represent- ing a significant improvement over .
We have taken measures to reduce personnel
and consulting costs and at the beginning of downsized our total workforce by around compared to the previous year.
We sold the property in Täby, which gave us a strong balance despite the year’s negative earnings. Cash and cash equivalents at De- cember , , totaled SEK million.
During the autumn we benefited from for- eign exchange movements since our sales are denominated in Japanese yen and US dollars, two currencies that gained steeply against the Swedish krona.
DISPLAY MARKET
The FPD market in was character- ized by massive investment in new produc- tion facilities and a continued rapid price fall in the consumer market. For pattern generators, the investment wave we expected to reach us in the second half of
failed to materialize due to the financial crisis and resulted in production cut-backs in the industry. The orders we had antici- pated were therefore pushed forward.
However, this means that our customers have built up no additional production capacity for photomasks and that the capacity needed to meet demand remains to be delivered.
The market downturn could stimulate demand for the Prexision-, our high margin product, by shifting planned investments from Generation (G) fabs to G and G. The Prexision- enables writing of larger, more complex photo- masks with high image quality, leading to improved flexibility, better yields and a reduced number of process steps, which are critical for cost-effective production of large format displays. This autumn, according to plan, we delivered the first Prexision- system for manufacturing of displays for G.
SEMICONDUCTOR MARKET
Growth in the semiconductor market slowed during the year, partly due to economic conditions but also as a result of structural changes. Today the cost of designing chips at advanced technology nodes has accelerated sharply. One effect of this is that the industry has gone from primarily designing chips for the most advanced technology nodes to more varied IC production across an increasing range of nodes in order to achieve the lowest pro- duction costs. The photomask industry has been late in reacting to this structural change, leading to the build-up of excess production capacity for photomasks at the advanced nodes. Against this background, the pattern generator market shrank to around systems in . With the sale and delivery of two Sigma systems during the autumn, Micronic has significantly strengthened its market position.
In the future we believe that the market for pattern generators will be led more by the push for lower costs than by techno- logical advances. Micronic’s Sigma systems offer cost-efficiency combined with the best lithographical performance of any laser- based pattern generator on the market.
ELECTRONIC PACKAGING
Development in the electronic packaging market remains fast-paced, driven by pow- erful demand for wireless and portable con- sumer electronics with advanced features. In the closely related product area for manu- facturing of PCBs, a less technologically complex process than that used for electron- ic packaging, there is a clear trend toward the use of Laser Direct Imaging (LDI). LDI could also be applied in electronic packag- ing applications, where it could offer valu- able cost advantages.
B0LFURQLF$ŵ5B(1*
In we evaluated the potential use of our unique and patented technology to broaden the existing product areas into a market with larger equipment volumes, which could also give us a more even revenue flow.
Micronic has the capacity to satisfy customer demand for more advanced products at investment levels that the industry can handle.
MICRONIC 2008 3
AFTER MARKET – INCREASED PROFITABILITY
The after market, consisting of service contracts, upgrades, add-on products and consulting services, is an increasingly im- portant area of business for Micronic. Ser- vice contracts are a relatively stable source of revenue even in periods with low system sales. The availability of our systems is crit- ical for our customers, which often have very short lead times. In the past year we succeeded in enhancing the uptime and stability in our systems, and therefore also their availability performance, which has also enabled us to increase our revenue from service contracts. Overall sales in the after market rose during the year and ac- counted for percent of total sales.
To further accelerate growth in the after market, changes were made at the management level. The subsidiary presi- dent in South Korea was named SVP Customer Operation and a new subsidiary president for the important Japanese market was appointed.
IMPROVED PERFORMANCE MANAGEMENT
In we continued our efforts toward efficiency optimization and continuous improvement throughout the company and refined our steering processes and quality systems. The success of these efforts was proven when a major customer carried out an extensive quality audit of Micronic with excellent results.
Our human resources were prioritized and lifted to a strategic level through the appointment of a SVP Human Resources with global responsibility. Among other things, in the past year we strengthened the employee development process, further developed the leadership program and improved the alignment of employee goals with company objectives.
THE FUTURE
In we experienced both disappoint- ments and the emergence of new opportu- nities. As a supplier to the global electronics market, we are accustomed to seeing sudden swings in demand. And although it is difficult to predict when demand for pattern generators will recover, our market is fundamentally sound and offers good earning potential.
I see several possibilities for Micronic.
We already have technology and products in place to meet customer needs when the market revives, and are therefore able to cut back our R&D spending from a level of SEK million to around SEK
million and shift our focus to development of a new product area. We have identified interesting potential in the market for electronic packaging, where we can expand our offering into a new market that is de- manding products in larger volumes. We have a solid balance sheet and healthy li- quidity that provide scope for product de- velopment while at the same time ensuring sustainability in these uncertain times.
Given the excellent earning capacity of our products, particularly in the display pattern generators, we find no reason to change our long-term goals. Our long- term operating margin target of percent stands firm, alongside our gross margin target of at least percent.
will most likely be a year of uncer- tainty, but will also offer exciting new op- portunities for Micronic.
Sven Löfquist President and CEO
n ts b y t h e C E O
B0LFURQLF$ŵ5B(1*
MICRONIC 2008 4
The Micronic share
SHARE PRICE TREND IN 2008
The closing price of the Micronic share in
was SEK ., compared to SEK
. at year-end , a decrease of
percent. Over the same period, the SIX General Index fell by percent and the Philadelphia Semiconductor Index SOX by percent.
The year’s highest bid price was quoted at SEK . on January and the lowest at SEK . on December .
Micronic’s market capitalization at the end of was SEK million, down from SEK , million at year-end .
TRADING AND LIQUIDITY
A total of . million (.) Micronic shares were traded in for a combined value of SEK million (,). This corresponds to percent () of the total number of shares in Micronic. The average daily trading volume was , shares (,), equal to an average daily value of SEK . million (.).
OWNERSHIP STRUCTURE
The number of shareholders at the end of the year was , (,). At year-end
the largest shareholders held
. percent (.) of the total number of shares. The largest shareholders held
. (.) percent of the total number of shares.
At the end of , . percent (.) of the shares were held by Swedish private investors, while percent () were held by Swedish equity funds and institutions.
Foreign investors held percent () of the share capital and votes. The Board of Directors and executive management control a combined . percent (.) of the number of shares and votes.
The Annual General Meeting was held in Täby on April . More than
percent of the shareholders were repre- sented at the meeting.
DIVIDEND POLICY
The Board of Directors and CEO propose that no dividend be paid for , nor has the company paid dividends in earlier years. Micronic has instead reinvested the generated profits primarily to finance on- going development activities and thereby create growth for the company.
EMPLOYEE STOCK OPTION PROGRAM
The Annual General Meeting of Micronic on March , , resolved to approve an employee stock option program running from to . Under the program Micronic may issue ,, warrants for subscription to shares, whereby the maximum dilutive effect is percent. The share capital may be increased by no more than SEK ,,.
The terms of the program have been drawn up in collaboration with the company’s largest shareholders and have involved allocation to the employees in Sweden on three occasions, after the publication of the interim reports for the second, third and fourth quarters of .
The strike price is equal to percent of the average market value on the ten trading days following publication of the respective quarterly reports and amounted to SEK , SEK and SEK . The members of the executive management together hold
, stock options. The terms of the program are also described in Note .
The Micronic share has been listed on the stock exchange since March 2000 and since April 2008 on the NASDAQ OMX Nordic Exchange, Stockholm List, Small Cap, Information Technology. Micronic’s share capital amounts to SEK 39.2 million and is divided between 39,166,616 shares of the same class, each of which carries one vote.
Ownership structure at December 31, 2008
Geographical spread of ownership at December 31, 2008
Private investors, Foreign 18%
investors, 19%
USA, 8%
UK, 3%
Norway, 2%
Others, 8%
Swedish equity funds, 35%
Sweden, 79%
Swedish institutions, 28%
B0LFURQLF$ŵ5B(1*
ANALYSTS THAT CONTINUOUSLY MONITOR MICRONIC Investment bank/Research company Analysts
Carnegie Daniel Djurberg
Handelsbanken Capital Markets Fredrik Agardh
Kaupthing Bank Mikael Laséen
Nordea Mats Bergström
Redeye Greger Johansson
Swedbank Håkan Wranne
SHARE DATA
Listing NASDAQ OMX, Nordic Exchange
Industry classification Small Cap, Information Technology Sector Electronic Equipment & Instruments
Ticker symbol MICR
ISIN code SE0000375115
Number of shares 39,166,616
Trading block 100 shares
MICRONIC’S TEN LARGEST SHAREHOLDERS AT DEC. 31, 2008
Shareholder No. of shares Holding, %
Catella Fonder 4,907,916 12.5
AMF Pension and Fonder 3,906,100 10.0
Fjärde AP-fonden 3,524,400 9.0
Alecta 3,175,000 8.1
Swedbank Robur Fonder 2,867,212 7.3
Morgan Stanley Fonder 1,933,704 4.9
Banco Fonder 1,144,000 2.9
Skandia Fonder 670,637 1.7
Skandia Liv 654,080 1.7
Pharos Invest 596,018 1.5
Total, ten largest shareholders 23,379,067 59.7
Others 15,787,549 40.3
Total number of shares outstanding 39,166,616 100.0
OWNERSHIP STRUCTURE AT DEC. 31, 2008
Holding by size No. of shareholders No. of shares %
1–500 3,380 673,156 1.7
501–1,000 1,001 880,443 2.2
1,001–5,000 894 2,239,869 5.7
5,001–10,000 162 1,263,718 3.2
10,001–50,000 139 3,114,629 8.0
50,001–100,000 23 1,606,214 4.1
100,001– 58 29,388,587 75.0
Total 5,657 39,166,616 100.0
2,000 4,000 6,000 8,000
2000 2001 2002 2003 2004 2005 2006 2007 2008
5 50 100 150 200 250
No. of shares traded, 1,000’s Micronic share
SIX General Index
© NASDAQ OMX
MICRONIC 2008 5
MICRONIC SHARE
icr onic sh ar e
B0LFURQLF$ŵ5B(1*B1<
MICRONIC 2008 6
Micronic remains the market-leading supplier of pattern generators for display photomasks, and in the past year delivered the first Prexision-10 for next generation display manufacturing. In addition, the status of the Sigma7500 was confirmed as the laser-based tool of choice for the semiconductor industry. In the electronic packaging market, Micronic launched the new FPS5300 pattern generator and evaluated the potential to develop laser- based systems for direct writing.
Micronic’s markets
In the flat panel display (FPD) market was characterized by massive investment in new production facilities and a continued rapid price fall in the consumer market.
The main display application is the TV followed by desktop monitors, notebook PC and mobile phones. Looking forward, public displays for so-called digital signage and mini note PC displays are expected to be among fast growing applications.
Though CRT TVs still account for a large portion of the TV market in the number of units, FPDs now represent over
percent of the overall display market in terms of revenue. The sharp decline in FPD pricing will soon also make the FPD TV the preferred choice in developing countries.
FLAT PANEL DISPLAY PRODUCTION TECHNOLOGIES
Flat panels are divided into different categories based on the technology they represent. The predominant FPD technology is liquid crystal display (LCD), currently accounting for around
percent of total FPD revenue.
In an LCD, a single so-called backlight unit is used to light up all pixels. Each pixel consists of three sub-pixels (red, green and blue) that can be individually modulated to produce virtually any color.
Most LCD manufacturers use around
photomasks when producing a liquid crystal display. Virtually all LCD photo- masks worldwide are produced using pattern generators from Micronic.
Plasma Display Panels (PDP) account for around percent of the FPD market.
PDPs are offered as an alternative to LCD- TV for large sizes (> inch).
In a PDP, each individual pixel generates its own light and color, but the PDP requires a relatively large amount of energy to emit light. Another issue with PDP technology is that it does not offer the resolution required for many applications. No advanced photo- masks are needed when producing a PDP.
A display category that has gained considerable attention lately is the organic light emitting diode (OLED). An OLED display requires no backlight or color filter since each pixel generates light and color on demand. This makes the OLED panel relatively “green” in that it consumes much less energy than an LCD or PDP display.
Another benefit of this technology is the ability to produce FPDs only a couple of millimeters thick with high image con- trast.
Although the technology has been around for many years, mass-production of OLED displays is currently used only for handheld applications. Producing large displays and reaching the desired lifetime has proven more difficult than previously expected. Both issues are linked to the materials used in the OLED panel, and large investments in R&D are currently being made to overcome these hurdles.
The OLED has the potential to become the super thin, low energy and low cost display of the future. Large high-precision photomasks will most probably be re- quired to produce large OLED displays.
Possible future applications include flexible FPDs that are only a couple milli- meters thick and have a relatively low production and material cost.
MARKET DRIVERS
Lower prices are key to stimulating demand and further expanding the total market in terms of units. The price decline is also
Display market
History and possible long-term future development of the display
Source: Display Bank, 2008
B0LFURQLF$ŵ5B(1*
97(FMPPMSR
Others Plasma TV Notebook PC Mobile Phone Desktop Monitor LCD TV
97(FMPPMSR
Revenues Growth
2006–2009 FPD revenue by application
Display equipment spending – history and forecast for the coming three years
MICRONIC 2008 7 7
fewer production steps is therefore positive for Micronic.
The large capacity investments among display makers during failed to filter down to the market for pattern generators as anticipated in the second half of the year and were pushed forward due to production cuts and postponed production starts in the wake of the global economic down- turn. However, this means that no addi- tional capacity for production of photo- masks has been built up by the mask shops.
The investments required to build new facilities has led to a restructuring process among the panel makers as they aim to share cost. One such example is Sony, which manufactures LCD TVs in cooperation with Samsung. During , Sony has also signed an agreement with Sharp to jointly operate the G factory currently under construction. In addition, Toshiba has signed an agreement to purchase around percent of its LCD TV panels from Sharp.
Geographically, South Korea and Taiwan continue to dominate FPD production.
THE MARKET FOR DISPLAY MANUFACTURING EQUIPMENT
was a record year for investments in display capital equipment and a total of USD . billion was spent, representing an increase of percent compared to
helping to shift demand toward larger panel sizes. In response to the worldwide economic downturn, most leading panel makers have cut back volumes on their existing production lines in order to avoid building up excess panel stock. Due to weaker demand and falling panel prices, the size of the LCD display panel market has been revised downwards to USD .
billion in and USD . billion in
(DisplaySearch, December ).
There is a continuing trend toward new generations of production facilities with larger glass substrates. An important mile- stone will be reached with Sharp’s antici- pated start-up of mass production on the world’s first Generation (G) produc- tion line in . Previously, the trend to- wards new display generations was fueled mainly by the increasing panel size, but lately production cost-efficiency has emerged as the main driver.
Display panel makers are also seeking other ways to lower their production costs, such as redesign of the most expensive components, programs to improve facility yields and a reduction in the number of production steps. This is stimulating demand for new and more advanced photomasks as new designs are introduced.
Fewer production steps require fewer photo- masks, but instead demand significantly more complex photomasks with longer write times. On the whole, the trend towards
Trend Effect on Micronic
> Volume growth > Increased basic demand for photomasks
> Price pressure > Redesigns lead to demand for fewer, but more advanced photomasks (Prexision-8)
> The new generation of production facilities requires larger and more advanced photomasks (Prexision-10)
> Better image quality > Demand for high resolution pattern generators (Prexision-8 and 10)
> Higher production yield > Demand for more complex pattern generators (Prexision-8 and 10)
cr on ic ’s ma rk et s
B0LFURQLF$ŵ5B(1*
MICRONIC 2008 8
(DisplaySearch, January ). Most panel makers have announced further plans for investment in new facilities, but given the current weak economic environment a number of these projects are being pushed forward in time.
MICRONIC IN THE DISPLAY MARKET
Micronic manufactures pattern generators that are used by mask shops to produce photomasks for delivery to display panel makers. Micronic’s superior technology has earned its pattern generators a position as the industry standard for display appli- cations. Micronic also manufactures measurement systems for advanced display mask metrology. At present, there are no competing systems for advanced LCD photomask production.
Micronic’s range of display products is well positioned to benefit from a recovery in the market. The Prexision- is optimized for production of advanced photomasks through G, while the Prexision- is designed to meet market requirements for high writing accuracy and productivity for the manufacturing of photomasks through G. The Prexision platform offers signifi- cantly higher throughput than earlier pattern generators, and therefore also shorter delivery times to photomask users and increased capacity for photomask makers. In Micronic delivered the first Prexision- system to a customer.
MARKET OUTLOOK
Total spending on display capital equipment in is predicted to fall sharply to USD
. billion and then bounce back to USD
. billion in (DisplaySearch, January
). This dramatic anticipated drop in investment should be seen in light of the explosive capacity buildup in and the worldwide economic downturn in the second half of the year. Investments in display pattern generators were very low in but are expected to pick up at a relatively early stage of a market upswing, since the existing production capacity is operating at full capacity. The current
market downturn could also stimulate demand for Micronic’s Prexision- system as planned investments in older generation fabs are upgraded to more cost-effective Generation and (G, G) facilities.
Semiconductor market
Growth in the semiconductor market slowed markedly in the second half of the year. Sales of integrated circuits amounted to USD billion in , down by .
percent for the full year compared to
(VLSI Research, December ). Semi- conductor equipment spending fell by
percent in and reached USD
. billion.
The semiconductor industry has evolved through many technology generations, referred to as nodes. Follow- ing a trend known as Moore’s Law, each node has led to a doubling in the number of transistors on a silicon chip every two years. However, in recent years the cost of designing chips at advanced technology nodes, i.e. nm and below, has acceler- ated sharply, resulting in the release of fewer designs. One effect of this is that the industry has gone from primarily designing
chips for the most advanced technology nodes to more varied IC production across an increasing range of nodes in order to optimize production costs for the respective application.
PHOTOMASK MARKET
While the photomask market was expected to contract by percent in , dropping to USD . billion (VLSI Research, December ), merchant mask shops had anticipated increased demand for advanced photomasks and expanded their capacity accordingly. However, a lower than expected volume of sub- nm chip designs has resulted in overcapacity at the leading edge and therefore also shrinking margins. In contrast, captive mask shops have not built up excess capacity to the same extent and can more easily capitalize on the superior cost-efficiency of laser pattern generators compared to electron- beam systems.
MICRONIC IN THE SEMICONDUCTOR MARKET
Because of the overcapacity situation in the merchant photomask market and limited demand from chip makers with captive mask shops, the pattern generator market has continued to shrink. Micronic’s assess- ment is that the market in decreased
Trend Effect on Micronic
> Decreasing margins on advanced semiconductor chips
> Driving cost-effective use of DUV mask patterning at the 90nm and 65nm technology nodes (Sigma7500)
> Specifications for non-critical layers evolving beyond capabilty of mask writers currently in use
> Emerging opportunities for DUV mask writing at the 45nm, 32nm and 22nm technology nodes
(Sigma7500)
> Retirement of e-beam pattern generators
> Increased volume available for pattern generators that write simpler photomasks (Omega)
> Rapid increase in number of chips requiring advanced electronic packaging
> Demand for cost-effective lithographic tools
B0LFURQLF$ŵ5B(1*
MICRONIC 2008 9
to around systems. was the best year to date for Micronic’s Sigma, with two systems ordered and shipped in the second half of the year.
Electron-beam systems are used to write the most critical layers in a mask set, while the Sigma can write the majority of layers much more cost-effectively.
NuFlare and JEOL manufacture e-beam tools, while Applied Materials continues to offer its existing laser products.
Due to the broadening of the semicon- ductor industry, there is a long “tail” of mature technology that is creating oppor- tunities for Micronic’s Omega series of pattern generators.
MARKET OUTLOOK
Due to an anticipated drop in demand for consumer electronics in , the semi- conductor market is set to decrease by
percent. Spending on semiconductor capital equipment fell steeply in , by
percent, and is projected to decline by a further percent in , although a recovery is awaited in (VLSI Research, December ). The photomask market was forecast to contract by percent to USD . billion in (VLSI Research, December ). As a result, the market for pattern generators is expected to weaken during and the installed base to shrink as older equipment is successively phased out of production without being replaced.
The market for electronic packaging
Demand for portable wireless products with advanced features is the drivers behind continued growth in consumer electronics. A rising level of semiconductor complexity is generating a need for innova- tive technical solutions within electronic packaging. The challenge for the industry is to meet these technological requirements for miniaturization in electronic packaging without raising the costs for manufacturing and materials.
Electronic packaging is currently carried out in two stages. The first of these, known as Wafer Level Packaging (WLP) is performed on a silicon wafer before it is cut into individual components, and the second step on a microcircuit board, or so-called substrate. Today the interconnect patterns for packaging are created via traditional lithography using photomasks and exposure tools (aligners and steppers), consisting of older generation process equipment for semiconductors and printed circuit boards (PCBs). The trend toward shrinking features and increasing com- plexities will create stronger pressure on the current exposure tools.
EQUIPMENT MARKET FOR ELECTRONIC PACKAGING
The exposure tool market for electronic packaging is predicted to surpass USD
million annually. The market is divided between substrate manufacturing, with a market value of around USD –
million (Micronic’s assessment based on IC Package Report , Japan Marketing Survey Co., LTD, ), and WLP, which is expected to exceed USD million in (Yole Developpement, February,
).
In the manufacturing of printed circuit boards, a less technologically complex process than that used for electronic packaging, there is a clear trend toward the use of Laser Direct Imaging (LDI), i.e.
direct imaging of interconnect patterns.
Direct imaging can also be applied to electronic packaging, where it offers valuable cost advantages.
MICRONIC IN THE MARKET FOR ELECTRONIC PACKAGING
Through extensive market and technical studies in , Micronic evaluated the possibilities for using its unique and patented technology to develop Laser Direct Imaging tools, LDI, for electronic packaging. Micronic sees clear potential in this market area and good opportunities to broaden the product offering into a new market that is demanding products in larger volumes.
In addition, Micronic will continue supporting the photomask sector for this market. In October Micronic introduced the FPS pattern generator for packaging photomasks as a successor to the FPS. The FPS is well positioned to meet future technology requirements and remains the most advanced system on the market.
Semiconductor chips mounted on a substrate.
cr on ic ’s ma rk et s
B0LFURQLF$ŵ5B(1*
MICRONIC 2008 10
The foundational elements of Micronic’s operations are the vision, the mission and the long-term goal. The company’s values, Lean Thinking principles and leadership profile govern the actions of the employees and the way their work is led and implemented in order to realize the established goals. The annual business planning process is shaped by these elements and is also based on the company’s long-term assessments and plans.
See Micronic’s strategic model on page .
BUSINESS PLANNING PROCESS
To meet its business objectives, Micronic uses a planning process based on five per- spectives: customers, operations, products, employees and finances. Every year, the strategic focus is reviewed and new goals are formulated for each perspective.
External demands on the products and services from customers and the market are balanced against the internal capacity to develop, produce and deliver these.
CUSTOMERS
Micronic has an explicit customer focus and strives to meet the high expectations of its customers through disciplined execution at the highest operational speed. Fast time- to-market is essential in enabling customers to meet their own launch schedules.
OPER ATIONS
Continuous improvement programs are car- ried out in development, purchasing, admin- istration, production, installation and service to optimize efficiency and quality through- out the company. These improvements are ultimately aimed at increasing customer ben- efit and shareholder value.
PRODUCTS
Technological innovation is not only the
backbone of Micronic’s business but is also critical in satisfying customer needs and requirements. This innovative climate is fostered by close partnership with custom- ers and an integrated approach to product development that spans across all func- tions in the company.
EMPLOYEES
Micronic is characterized by a high level of innovation and knowledge in a wide range of areas. Continuous development of em- ployee expertise, in both breadth and depth, is decisive for the company’s ability to meet customer requirements.
FINANCES
To ensure attainment of the company’s long-term financial targets, all commercial opportunities must be weighed against the technical, market-based and financial risks. Through a high level of conscien- tiousness in financial control, continuous improvements are pursued to achieve high- er efficiency and lower costs in products and execution.
MICRONIC’S VALUES
Micronic’s values serve to strengthen the organization by providing guidelines for the conduct of all employees. Because Micronic is a global company with units in geograph- ically widespread locations, it is vital that its work is steered by common values and that decisions are made on consistent grounds.
Aside from creating a uniform identity, the values contribute to greater efficiency and support the decision-making process.
PROCESS FOR NEW BUSINESS OPPORTUNITIES
In order to meet the market’s high demands on technological development, Micronic
Micronic’s long-term strategic model is designed to steer the company’s business toward technological innovations offering strong growth and profitability. The focus in Micronic’s offering is on meeting customer needs and the market’s requirements on precision, quality, productivity and service.
Micronic’s long-term strategic model
RESPECTFUL INTER ACTION
We respect each other independent of gender, cultural or ethnic back- ground.
PUSHING THE LIMITS
We are always pushing the limits of current technolo- gies. We are exploring new ideas for the future. In daily operation, we challenge our limit in every aspect and outperform where we were yesterday.
CAPTURING THE HEART OF THE CUSTOMER
We meet each customer’s unique needs through lasting win-win partner- ships that combine technology, teamwork and innovation.
TEAMWORK AND CLARITY
We build success through the contribution of each employee and collabo- rate with clear roles and responsibilities.
Micronic has defined four corporate values:
Micronic’s values
B0LFURQLF$ŵ5B(1*
ROADMAPS
Navigation maps with estimates for markets, products, technology,
employees and operations.
ANNUAL BUSINESS PLANNING PROCESS
Customers Operations Products Employees
Finance
INPUT FORFEEDBACK TO
GUIDE STRENGTHEN
INPUT FOCUS
L O N G - T E R M G O A L S Extend our leadership in lithography products for the display market. Be the leader in the semiconductor
pattern generator market. Company growth through new business outside the current markets. Generate
an operating margin of 15% over a business cycle.
Equity/asset ratio of 60%.
M I S S I O N
Generating shareholder value by optimizing customer value in the existing business and creating
growth in new markets with short product series where Micronic plays an active role in the development
of new manufacturing processes.
V I S I O N
Leading the way for tomorrow’s innovations in imaging technology and electronics.
VA L U E S Pushing the limits Capturing the heart of the customer
Teamwork and clarity Respectful interaction
L E A N T H I N K I N G P R I N C I P L E S Visualization
Standardize Pull workflow Cross-functional team
Continuous improvements Go and see
Learning Right from me
L E A D E R S H I P Coach, goal-oriented, team player.
Driving/open to change.
Integrity and good judgment.
Self-awareness and reliance
MICRONIC 2008 11
works according to Business Opportunity Pipeline, a process used to assess whether or not a product has realizable potential.
In this way, developed technologies can be used both in existing products and as a platform for new products.
LEAN THINKING PRINCIPLES
Lean Thinking defines a set of principles and tools used by Micronic to develop and improve its competitiveness and profit- ability. Lean Thinking is a highly customer- driven approach that maximizes customer value while at the same time ensuring the use of effective methods and processes.
All of the principles relate to the customer relationship in different ways, such as:
Pull workflow – means that there must be a customer who demands, requires and is dependent on a certain result.
Go and see – means that an employee working in a certain process physically goes and studies the situation, for example by visiting the customer’s environment or using benchmarking against operations similar to Micronic’s in order to adopt best practice.
Cross-functional team – reduce the number of handovers, which saves time and resources in a workflow. One such
example is development of the Prexision-, where the lead time was shortened by
percent compared to the Prexision-.
Lean Thinking also provides a number of methods based on principles to optimize efficiency throughout Micronic’s organiza- tion. One such method is value stream mapping, which is used to identify which steps in a process add value, and which do not. The method is based on the principles of cross-functional teams, go and see, visualization and learning. Another method is Project Experience Review, which is aimed at capturing experience from one project and using it in another.
Micronic’s
strategic model
cr on ic ’s long-term str a tegi c model
B0LFURQLF$ŵ5B(1*
MICRONIC 2008 12
MARKET AND SALES
Micronic’s customers are found in a narrow group of high-tech companies. Because the products represent a sizeable investment for the customer, sales involve a large degree of personal customer contact.
In addition to direct customer meetings, the products are marketed at a number of conferences and industry trade shows where it is also possible to reach photo- mask end-users.
This target group, the customers of Micronic’s customers, is of major impor- tance for marketing and future product needs.
In the past autumn, for the fourth consec- utive year, Micronic held technical semi- nars in Japan, Taiwan, South Korea and China. At the seminars, Micronic presented its entire product portfolio and updated its customers and their customers about the latest technological advances. A new feature for the year was “round table meetings” with the participants for a joint discussion of challenges in the industry.
CUSTOMER-DRIVEN PRODUCT DEVELOPMENT
Close partnership with customers has always been a hallmark of Micronic’s
product development strategy. “Business Opportunity Pipeline” is a process used to ensure that the company is focused on developing the products and services demanded by customers, and that this is done with a reasonable level of risk that allows both short- and long-term profit- ability. Through this process, Micronic selects the products and services to be produced and sold.
When the company decides to realize a new product, this sets in motion an intensive process that relies on close collaboration between many different fields of expertise. The schedule is often
Micronic’s operations and products
The manufacturing industry served by Micronic demands innovative products at the leading edge of technology, with high quality for stable and reliable production. Micronic’s operations are also characterized by responsive- ness to meet sudden changes in the market and satisfy strict customer requirements of short delivery times and reliable service.
RE W A RDE D C O N T RIB U T ION S
Best practice
In 2008 Micronic established a global program to acknowledge valuable contributions in the orga- nization. As part of this initiative the company held a “Micronic Day” in September, an annual internal event to highlight the employees and their work. Awards for the best practice work methods were presented to four different teams that were represented by the following individuals.
Mats Ekberg
Successful writing of 3-dimensional structures
“Through in-depth and far-reaching knowledge of pattern generation, photoresist and data manipulation, and with valuable assistance from our partners, we succeeded in writing a 3-dimensional photomask on a Micronic pattern generator that is designed for 2-dimensional fabrication.”
Magnus Marthinsson
Preventive service led to dramatically improved uptime
“By prioritizing and visualizing problems, continuously building up the local expertise
and underlining the value of preventive service at the customer site, we increased the uptime of the pattern generators by 14 percent in the span of six months.”
Johan Colling
Faster development of loading module for the Prexision-10
“By employing cross-functional teamwork, better reuse of earlier designs and closer cooperation with our subcontractors, we were able to shorten the development cycle for the loading module in the Prexision-10.”
Nina Skanse
Program to improve the quality and service life of lasers in the Sigma systems
“By using visualization charts to show the status of lasers on customer sites, increased knowledge sharing and understanding through cross-functional teamwork and shorter decision-making paths, we managed to increase the uptime of the pattern generators, optimize production planning and extend the service life of the lasers by 180 percent.”
B0LFURQLF$ŵ5B(1*
13 MICRONIC 2008
aggressive, at the same time that many complex problems must be solved. In
Micronic manufactured the first Prexision-
laser pattern generator, an undertaking in which the key tactic was to work cross- functionally across different disciplines such as design, purchasing, production and service. The project flow was structured by systematically working through the product and design requirements. The project team used integration-driven development, structured verification and visualization for effective steering and communication. Above all, this strategy speeded up the process and resulted in higher precision in quality and delivery.
PRODUCTION OF COMPLEX SYSTEMS IN SMALL VOLUMES WITH HIGH QUALITY
When an order is received it is followed by production, which is broken down into planning, purchasing, assembly and setup.
The manufacture of pattern generators, carried out at Micronic’s facility in Täby, places stringent demands on the skill, precision and technical expertise of those who build and calibrate the systems. A pattern generator must be placed in a cleanroom during assembly of critical optics, calibration of sub-systems and testing of finished systems.
In the next phase, the installation department takes over responsibility for setup, calibration and acceptance testing.
Once a system has been approved it is shipped to the customer, first by climate- controlled truck and then by airplane.
Vibration, position and temperature sensors are enclosed within the shipment to ensure that the system is not exposed to potentially damaging conditions.
This is followed by setup at the customer’s site, where the system is fine-tuned and
An estimated 1.8 billion cell phone displays were manufactured in 2008.
The photomasks needed to produce cell phone displays can be written using pattern generators from Micronic.
Source: DisplaySearch January, 2009
Patents and licensing
For a high-tech manufacturer like Micronic, it is of particular importance to protect the use of innovative new solutions in application areas and markets of expected future importance through patents and licensing agreements.
A decisive and long-term strategy for early identification and protection of innovations through a combination of patent applications and analysis of the intellectual property potential of its business models enables the company to steer its operations in the right direction.
At the end of 2008 Micronic had 186 patents registered in the USA, Asia and Europe, whereof 50 patents were granted during the year.
Organization
Micronic’s operations are structured in a functional organization with joint R&D, man- ufacturing, marketing and sales for all prod- ucts.
Micronic has its head office and depart- ments for R&D, production and marketing in Taby, just outside Stockholm, and a strategic development unit in Gothenburg. Micronic has subsidiaries in Japan, South Korea and the USA whose role, aside from providing customer service and support, is to work closely with the Parent Company in activities such as marketing, sales and installation.
Micronic has a small subsidiary in Taiwan and a local office in China. In both of these coun- tries, Micronic also works via an agent.
In Japan Micronic has also opened the Asia Technical and Application Center – ATAC – to serve the entire Asian region.
cr on ic ’s oper a ti o ns an d pr oduc ts
B0LFURQLF$ŵ5B(1*
Sigma7500 Omega6080 FPS5300
MICRONIC 2008 14
Micronic implemented an improved workflow model that is supported by a new case handling system. The anticipated results are faster customer response times and decreased administration. Additional workflow improvements will be made during .
OPTIMIZED GLOBAL SPARE PARTS HANDLING
A fast supply of spare parts is extremely important for the customers, and very costly for the company. In Micronic there- fore initiated a project, to be continued in
, to optimize spare parts inventories and ultimately reduce working capital.
Access to spare parts will be improved and delivery times shortened.
CUSTOMER SUPPORT
In order to promote continuous improve- ment, Micronic’s customer support activities are conducted according to three main objectives; Slim, Simple and Speed.
Slim – A new director for after market activities, based in Asia, was appointed in the spring to stimulate and accelerate business development and bring the management closer to the company’s main markets in Asia. The organization and workflow have been adapted to best meet customer requirements. In the past year the customer support staff was reduced by
percent in response to the new market situation.
Simple – Customer focus, stronger profit- ability, increased sales of after market products and motivated employees are all strategic goals for customer support that will be achieved by striving for simplicity throughout the company. Simplicity is a key objective regardless of whether it
applies to high quality service, the develop- ment and provision of system upgrades or continuous efficiency improvements in Micronic’s operations. This is facilitated by organizing customer support in three main areas; service, sales of after market products and operational support.
Speed – Greater responsibility for customer support will be assigned to the regional offices at the same time that regional expertise is reinforced. The global support processes have been updated and rede- ployed for additional speed and efficiency and systems aimed at optimizing customer support are now also in place. All of these factors will contribute to greater speed in operations.
AFTER MARKET OUTLOOK
Market development is relatively easy to predict, since the number of new service contracts corresponds to new system sales delayed by the warranty period, which is typically one year. Service contracts are a comparatively stable source of revenue even in periods with weaker system sales. Sales of add-on products, upgrades and consult- ing services are expected to grow in pace with a rising number of products and ser- vices, although these have been affected by a weak photomask market.
final acceptance testing is carried out.
After this, the system is integrated into the customer’s production.
AFTER MARKET
The industry in which Micronic operates is highly demanding and its customers depend on a very high level of availability from their production systems. Close co- operation with the customers is vital in or- der to provide effective service but also to offer add-on products such as new features and/or enhanced performance.
The after market, consisting of service contracts, upgrades, add-on products and consulting services, is becoming an in- creasingly important part of Micronic’s business in pace with growth in the in- stalled base, which is leading to increased revenue from after market sales. Today the useful life of a Micronic system exceeds
years.
During the year Micronic continued to enhance efficiency in the service organization through a new concept, the “five success factors for service”. This is based on several years of determined efforts in the service teams that have resulted in improved performance and received a very positive response from the customers. One trend is a continuous increase in uptimes by a rolling average of . percent. The new concept gives customers better service at the same time that Micronic can take a proactive approach, plan its activities and balance its resources more efficiently. It has also resulted in better methods for handling complex system problems. On the whole, the concept is a more cost- effective way of working.
MICRONIC GLOBAL COOPER ATION
In order to facilitate global cooperation, in
B0LFURQLF$ŵ5B(1*
Prexision-10 LRS15000 MMS15000
15 DISPLAY PRODUCTS
System Application Resolution/Generation
Prexision-10 TFT-LCD 0.75 μm/G11
Prexision-8 TFT-LCD 0.75 μm/G8
LRS15000-TFT3 TFT-LCD 0.75 μm/G8
LRS15000-TFT2 TFT-LCD 1.5 μm/G8
MMS15000 Registration measurement
of display photomasks
PRODUCTS FOR ELECTRONIC PACKAGING
System Application Max. photomask size
FPS5300 Electronic packaging 1100 x 1100 mm
SEMICONDUCTOR PRODUCTS
System Application Technology node
Sigma7500-II Semiconductor ≥ 45 nanometer
Sigma7500HA Semiconductor ≥ 65 nanometer
Sigma7500HT Semiconductor ≥ 90 nanometer
Omega6800 Semiconductor ≥ 130 nanometer
Omega6080 Semiconductor ≥ 250 nanometer
MICRONIC 2008 15
MICRONIC’S PRODUCT PORTFOLIO
Micronic’s product portfolio consists of pattern generators for photomasks in three application areas: displays, semiconductors and electronic packaging. The product range also includes a metrology system for display photomasks.
PATTERN GENERATORS FOR DISPLAY PHOTOMASKS
PRE XISION AND LRS150 0 0
The systems in the Prexision and LRS series are used to produce photomasks for flat panel TFT-LCD displays and color filters for these. Micronic’s latest system, the Prexision-, is capable of exposing photomasks up to mm with a . μm resolution for production up to Generation
(G), which is used primarily for LCD TV. The Prexision- is designed for photo- masks up to Generation- (G). The systems based on the Prexision platform have a higher image quality than the earlier LRS series. The LRS systems can write photomasks up to and including G.
METROLOGY SYSTEMS FOR TFT-LCD PHOTOMASKS
MMS150 0 0
The MMS system is used to verify pattern placement accuracy (registration) on large area TFT-LCD photomasks. The system has a registration measurement accuracy of nm, which makes it the most accurate on the market by far. The maximum photomask size is x mm.
PATTERN GENERATORS FOR SEMICONDUCTOR PHOTOMASKS
SIGMA750 0
The Sigma series consists of Deep Ultra Violet (DUV) optical pattern generators that are based on SLM technology, and
offer a unique combination of high resolu- tion and short write time. The system is designed for production of semiconductor photomasks at the advanced technology nodes. There are three system types, SigmaHT, SigmaHA and Sigma-II, which target the , and
nm nodes respectively. The Sigma
is also used to manufacture the most advanced image sensors (CCD) and phase shifting photomasks.
OMEGA68 0 0 AND OMEGA60 8 0
The Omega is a raster scan pattern generator with a very flexible architecture, enabling photomask manufacturers to achieve optimal quality and writing speed.
The Omega is designed for volume production of semiconductor photomasks for the nm technology node and above.
Another application is production of photo-
masks for the image sensors found in camera phones and most digital cameras.
The Omega is based on the same platform, but offers even higher productivity for lower end photomasks, at the nm technology node and above, and for less advanced phase shifting photomasks.
PATTERN GENERATORS FOR ELECTRONIC PACKAGING PHOTOMASKS
