Global extreme ultraviolet (EUV) lithography market is estimated to witness high growth, owing to rising semiconductor sales and increasing miniaturization
Global extreme ultraviolet (EUV) lithography market is estimated to be valued at US$ 9.42 Bn in 2024, exhibiting and CAGR of 17.3% over the forecast period (2024-2031). The market growth is driven by rising sales of semiconductor components across consumer electronics and automotive industries. Furthermore, ongoing trend of increasing miniaturization and design complexity can compel lithography tool manufacturers to adopt EUV lithography technology.
Market Dynamics:
Global extreme ultraviolet (EUV) lithography market growth is driven by increasing demand for miniaturized chips from consumer electronics and smartphones that compel semiconductor manufacturers to incorporate higher resolution lithography tools like EUV lithography. Growing industries like automotive, healthcare and data centers can boost demand for more powerful and energy-efficient chips. This prompt chipmakers to adopt the latest EUV lithography technology to develop smaller node sizes below 10nm. While EUV lithography is gaining popularity, its high capital and operational costs pose a challenge for widespread adoption in the near future.
Growing demand for smaller semiconductor devices
Global extreme ultraviolet (EUV) lithography market growth is driven by increasing demand for smaller semiconductor devices. As electronic devices become more advanced and compact, there has been need to shrink the size of transistors and interconnects on integrated circuits. Traditional photolithography techniques are reaching their resolution limits, making EUV lithography necessary to fabricate transistors with dimensions less than 10 nanometers. EUV lithography allows for chip designers to continue following Moore's law and pack more transistors into smaller footprints. This will improve the performance and efficiency of devices across various industries that rely on semiconductors like computers, smartphones, vehicles and more.
Continued technological advancements
Ongoing technological developments in EUV lithography equipment and processes can drive the market growth. Early EUV systems faced many challenges related to power source reliability and low throughput. However, source power has increased significantly with new laser-produced plasma technology. Equipment uptime has also improved due to developments in EUV mirror coatings that reduce attenuation. While EUV lithography is still not ready for high-volume manufacturing, technological progress in resolving these issues gives chipmakers confidence to invest in the new lithography solution. Advancements that enhance the viability and lower the costs of EUV lithography remove barriers for its adoption.
High cost of EUV lithography equipment
Global extreme ultraviolet (EUV) lithography market growth can be hampered by extremely high cost associated with the technology. An EUV lithography scanner alone can cost over US$ 120 million. When factoring in the cleanroom infrastructure and EUV optical components required, the total investment needed per EUV scanner is estimated to be over US$ 150 million. This massive upfront capital expenditure poses difficulties for chipmakers and limits the number of early adopters. The high cost also contributes to the lack of economies of scale in the industry currently. Widespread commercial use of EUV lithography depends on significant cost reductions from equipment suppliers and yield improvements that boost return on investment.
Low throughput of current systems hampers mass production
Global extreme ultraviolet (EUV) lithography market growth can be hampered by low throughput of current generation EUV systems, which hinders their use for high-volume manufacturing. Existing EUV scanners can achieve a throughput of only about 70 wafers per hour, compared to over 100 wafers per hour for immersion lithography tools. This relatively low productivity means that EUV lithography has higher costs per wafer produced. Chipmakers are reluctant to transition to EUV for mass production until throughput increases to match or exceed existing alternatives. For commercial viability, equipment suppliers must continue throughput enhancements to match the demands of high-volume fabs.
Rising demand for advanced logic chips spurs opportunity
Global extreme ultraviolet (EUV) lithography market growth can witness opportunities due to increasing worldwide demand for leading-edge logic chips used in applications like high-performance computing, artificial intelligence, 5G networks and more. The latest computing, networking and graphics processing chips require the use of EUV lithography to print ever-smaller transistors. As advanced logic chips witness huge adoption globally, there will be a corresponding need for EUV lithography to maintain Moore's law scaling. Manufacturers of logic chips present a key customer base driving initial EUV lithography adoption.
Growing foundry outsourcing models
Rise of foundry outsourcing, where chip designers outsource fabrication to specialized foundries, opens up another growth opportunity. Leading foundries like TSMC and Samsung are investing heavily in EUV lithography to meet the needs of chip designers and stay at the forefront of Moore's law. For foundries to stay competitive and attract customers, equipping fabs with the latest EUV tools is crucial. As outsourcing to specialized foundries grows with increasing semiconductor complexity, there will be huge demand for EUV lithography in foundries. This presents a sizable market potential for EUV suppliers to target the foundry customer segment.
Link - https://www.coherentmarketinsights.com/market-insight/extreme-ultraviolet-lithography-market-4537
Key Developments:
- In January 2024, ZEISS Group, a leading provider of optical systems and semiconductor manufacturing technology, unveiled its High-NA (Numerical Aperture) Extreme Ultraviolet (EUV) lithography system. This advanced system marks a significant advancement in semiconductor manufacturing, enabling the production of microchips with exceptionally fine features, surpassing the capabilities of existing EUV systems. High-NA-EUV technology will facilitate the creation of more powerful, energy-efficient, and cost-effective chips, setting the stage for the next generation of integrated circuits.
- In July 2023, Canon, a global leader in imaging and optical products, unveiled a new photomask technology specifically designed for Extreme Ultraviolet (EUV) lithography. This innovative technology aims to enhance the precision and efficiency of semiconductor manufacturing, enabling the production of smaller and more complex microchips. Canon's advancements in photomask technology are expected to play a crucial role in meeting the growing demands of the semiconductor industry, particularly as manufacturers strive for greater miniaturization and performance in their chips.
- In March 2023, TSMC (Taiwan Semiconductor Manufacturing Company), the world's largest dedicated independent semiconductor foundry, announced plans to expand its EUV (Extreme Ultraviolet) lithography capabilities at its manufacturing facilities. This expansion is part of TSMC's ongoing efforts to enhance its advanced chip production processes, allowing the company to meet the increasing demand for smaller, more powerful microchips. By investing in EUV technology, TSMC aims to maintain its competitive edge in the semiconductor industry and support the development of next-generation devices that require advanced manufacturing techniques.
- In June 2022, ASML, a leading supplier to the semiconductor industry known for its advanced lithography equipment, launched a new technology education initiative called the ASML Junior Academy in partnership with Mad Science. This program aims to provide technology education to all 271 primary schools in the Brainport Eindhoven region, enabling approximately 60,000 children to learn about technology each year. The ASML Junior Academy will kick off in September with lessons offered at fifty primary schools, focusing on engaging students in STEM (science, technology, engineering, and math) subjects.
- In December 2021, ASML, a Netherlands-based company and the world's leading provider of semiconductor manufacturing equipment, announced the release of a new version of its extreme ultraviolet (EUV) lithography systems. These cutting-edge machines are essential for etching intricate patterns onto silicon wafers, enabling the production of the most advanced CPUs. Major chipmakers like Samsung, TSMC, and Intel utilize ASML's existing EUV technology to develop the next generation of processors for PCs and smartphones. ASML's innovative EUV lithography systems are at the forefront of semiconductor manufacturing, driving the industry forward and supporting the development of increasingly powerful and energy-efficient electronic devices.
Key Player:
ASML Holding N.V., Nikon Corporation, Canon Inc., Intel Corporation, Samsung Electronics Co., Ltd., TSMC (Taiwan Semiconductor Manufacturing Company), Global Foundries, Micron Technology, Inc., Applied Materials, Inc., Lam Research Corporation, KLA Corporation, Tokyo Electron Limited, Advantest Corporation, Hitachi High-Technologies Corporation, and Teradyne, Inc.
