In order to improve overlay capabilities for future exposure tools, it is n
ecessary to understand the contributions from various sources. The most imp
ortant contributions come from well-known sources like mask pattern placeme
nt accuracy, alignment system accuracy and from exposure tool stage perform
ance. As the allowances for overlay budget decrease, and improvements in ma
sk fabrication and stage performance are made, a number of previously less
significant contributions need to be considered. These contributions includ
e resolution, optical interference, focusing accuracy of the alignment syst
em, and wafer processing deviations. These contributions are characterized
in detail in this paper. The investigation was focused on a proven optical
alignment system (ALX(TM)) and overlay contribution as they apply to x-ray
and optical lithography. Special emphasis was made on contributions from wa
fer processing (resist coating and metallization).