TITEL

Developing electronics with virtually integrated suppliers  

SPREKER

Ton Nabben, ASML 

ABSTRACT

ASML is driving towards increased supplier involvement in development and production of new products. The main reason is the desire to keep product development up to speed with the requirements of our customers in the semiconductor industry. This offers interesting opportunities for our suppliers. A significant part of the electronics development at ASML is carried out by suppliers, either as flex employees or as farmed-out activities. Balancing internal versus external developments requires taking into account many factors. The well known core versus non-core model is insufficient to guide the decisions. As ASML is a lithography supplier, why would we design electronics at all? It turns out there are many factors that play a role, some of which will be discussed. Increasing supplier involvement is not a step-wise event; rather we look at it as an adventure that takes time and effort. To be successful in the area of electronics, we considered the entire product life cycle from specification to end-of-life. We tried to find ways to change and improve the way we cooperate with suppliers. We also identified ways our suppliers can go to grow with ASML. Together with several suppliers we are making steps and learn as we go. The result of this adventure should be a situation where ASML and suppliers have seamless interfaces, in other words suppliers are virtually integrated in the ASML organization. This will allow suppliers to take more responsibility for larger ASML machine functions. ASML development will be focusing more and more on critical activities. Together we are able to deliver what ASML customers desire. The reward is the perspective of a growing business, a win-win for both suppliers and ASML.