Derek Wallace

Derek Wallace
Vice President Strategic Sourcing & Procurement

ASML is the world market leader in advanced technical systems for the semiconductor industry. ASML offers an integrated programme of lithographical systems, principally for the fabrication of semiconductors (chips). ASML contributes to the semiconductor industry through the continual improvement of the equipment, which facilitates further miniaturisation of semiconductors. In this way, manufacturers of semiconductors can create finer details on the silicon wafers, thus increasing the computing power or memory capacity per chip, while costs remain fairly constant.

ASML’s business model is based on the outsourcing of the production of an appreciable portion of the components and modules from which our lithographical systems are assembled. For this purpose we maintain close relations with suppliers throughout the world. The company purchases system components and modules for steppers and scanners from a specific supplier or a limited group of suppliers. In this way, quality and delivery reliability are guaranteed. Together with its suppliers, ASML implements a "value sourcing" strategy based on competing performances in the areas of quality, logistics, technology and overall costs. This strategy is aimed at having a group of suppliers who are world class, are competitive at a world level and have a presence throughout the world. ASML maintains long-term relations with its suppliers and shares risks and success, so that all parties benefit. Increasingly often, ASML asks its suppliers to be involved in design and development at an early stage.

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