Global EUV Lithography Market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2031

EUV Lithography Market Analysis

EUV (Extreme Ultraviolet) lithography market is experiencing significant growth due to advancements in semiconductor manufacturing technologies. The latest method involves the use of 13.5 nm wavelength light to create intricate patterns on silicon wafers, enabling the production of smaller and more efficient chips. Recent developments include improved mask technologies, which enhance the precision of pattern transfers, and advancements in light source technologies that increase throughput while maintaining high resolution.

The market is driven by the demand for higher performance in electronic devices, especially in the production of cutting-edge processors for applications such as AI and 5G. Companies such as ASML are leading the way, with their cutting-edge EUV systems being adopted by major semiconductor manufacturers, including TSMC and Samsung.

Moreover, the growth of the electric vehicle (EV) market and the Internet of Things (IoT) are pushing the demand for more advanced semiconductors, further fueling the EUV lithography market. As manufacturers scale up production, investment in EUV technology is expected to continue rising, contributing to the overall growth and efficiency of the semiconductor industry in the coming years.

EUV Lithography Market Size

The global EUV lithography market size was valued at USD 9.38 billion in 2023 and is projected to reach USD 40.60 billion by 2031, with a CAGR of 20.10% during the forecast period of 2024 to 2031. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.

EUV Lithography Market Trends

“Increasing Demand for Advanced Semiconductor Nodes”

The growth of the EUV (Extreme Ultraviolet) lithography market is significantly driven by the rising demand for advanced semiconductor nodes, particularly in the production of 5nm and below chips. As tech giants such as TSMC and Samsung ramp up their production capabilities for cutting-edge processors, EUV lithography has become essential for achieving the high resolution needed for these nodes. For instance, TSMC’s collaboration with ASML to expand EUV capacity highlights this trend, ensuring they meet the growing requirements of applications such as artificial intelligence and 5G technology. This increasing focus on miniaturization and performance is a key factor propelling the EUV lithography market forward.

Report Scope and EUV Lithography Market Segmentation    

EUV Lithography Market Definition

Extreme Ultraviolet (EUV) lithography is a cutting-edge technology used in semiconductor manufacturing to produce smaller, more powerful microchips. It employs light with a wavelength of approximately 13.5 nanometers, significantly shorter than that used in traditional photolithography. This allows for the creation of finer features on silicon wafers, enabling higher transistor density and improved performance. EUV lithography is crucial for advancing Moore's Law, as it facilitates the production of chips with dimensions below 7 nanometers. High costs and technical complexities have challenged its adoption, but it remains a key driver in the evolution of modern electronics.

EUV Lithography Market Dynamics

Drivers

• Growing Demand in the Automotive Industry

The surging demand within the automotive industry stands as a significant driver for the global extreme ultraviolet (EUV) lithography market. With automotive manufacturers pushing boundaries to introduce cutting-edge technologies in vehicles, the need for highly sophisticated semiconductor chips has intensified. EUV lithography's unique capability to produce smaller, intricate chip designs is critical in meeting these demands. It allows for the creation of high-resolution semiconductor components, ensuring improved performance, enhanced safety features, and increased efficiency in automotive systems. As the automotive sector continues its rapid technological evolution, the role of EUV lithography in manufacturing the next generation of smart, efficient, and high-performance vehicles becomes increasingly pivotal. For instance, in March 2022, Canon Inc. unveiled its Extreme Ultraviolet Lithography (EUV) system, the FPA-1200NZ2C, designed for 5-nanometer chip production. This state-of-the-art technology enhances semiconductor manufacturing, enabling the creation of more powerful and efficient chips essential for smartphones and laptops. With EUV lithography, Canon aims to position itself at the forefront of advanced semiconductor fabrication, meeting the growing demand for cutting-edge electronic devices.

• Increasing Demand for Data Centers

The escalating demand for data centers has emerged as a significant driver for the global extreme ultraviolet (EUV) lithography market. The exponential growth in digitalization, cloud computing, and data-driven technologies, there's an unprecedented need for higher computational power and storage capacity. EUV lithography, known for its ability to achieve finer chip designs and intricate patterns essential for advanced semiconductor manufacturing, plays a pivotal role in catering to this demand. As data centers evolve to handle vast amounts of data, there's a parallel need for more powerful and efficient semiconductor chips. EUV lithography offers superior capabilities in producing these high-performance chips, enabling enhanced processing power, reduced power consumption, and compact design elements. The increasing reliance on data centers for diverse applications is, therefore, propelling the adoption of EUV lithography technology, positioning it as a crucial enabler in meeting the ever-growing demands of the data-centric landscape. For instance, in January 2022, Intel announced plans to implement ASML's High-NA Twinscan EXE scanners for high-volume manufacturing starting in 2025. This initiative is part of Intel's strategy to adopt its 18A (1.8 nm) production technique, which represents the next generation of extreme ultraviolet (EUV) lithography technology. Despite trailing competitors such as TSMC and Samsung, Intel aims to leverage these advanced tools to regain leadership in semiconductor innovation.

Opportunities

• Rising Government Investments

The global extreme ultraviolet (EUV) lithography market is witnessing a significant boost due to rising government investments in semiconductor manufacturing and research. The support extends to funding for EUV lithography advancements specifically, acknowledging its crucial role in advancing semiconductor miniaturization and supporting the production of high-performance chips for diverse applications. These investments aim to accelerate the adoption of EUV lithography, enabling manufacturers to produce more sophisticated and high-density semiconductor chips, fueling innovation across various sectors, and strengthening a nation's technological competitiveness on the global stage. For instance, in June 2022, ASML launched the ASL Junior Academy in partnership with Mad Science, a technology education initiative targeting 271 primary schools in the Brainport-Eindhoven region. This program aims to educate approximately 60,000 children annually about technology and its applications. Beginning in September, the academy will engage students in hands-on learning experiences, fostering interest in STEM fields and nurturing the next generation of innovators in technology.

• Increasing Advanced Semiconductor Manufacturing

EUV lithography presents significant growth opportunities as semiconductor manufacturers strive for smaller, more efficient chips. As technology nodes shrink to 5nm and below, the demand for EUV systems increases, enabling the production of advanced devices that enhance computing power and energy efficiency. For instance, in January 2024, ZEISS Group launched its High-NA (Numerical Aperture) Extreme Ultraviolet (EUV) lithography system, representing a groundbreaking advancement in semiconductor manufacturing. This innovative system allows the production of microchips with exceptionally fine features, surpassing current EUV technology capabilities. By enhancing precision in chip design, ZEISS aims to support the next generation of semiconductor devices, further pushing the boundaries of technology in the industry.

Restraints/Challenges

• High Cost of Implementation

The high cost of EUV lithography systems, exceeding USD 100 million per unit, significantly hinders market adoption, particularly among smaller semiconductor manufacturers and foundries. This financial barrier arises from the intricate design and engineering required for EUV technology, which necessitates advanced materials and precision components. Additionally, the limited number of suppliers exacerbates the situation, creating a monopolistic environment that drives prices higher. As a result, many smaller players are unable to invest in such costly equipment, leading to a concentration of technology among larger firms and stifling competition and innovation within the semiconductor industry.

• Limited Supply of EUV Sources

The limited supply of extreme ultraviolet (EUV) light sources significantly hinders the EUV lithography market. These sources are crucial for generating the short-wavelength light needed for high-precision semiconductor patterning. Currently, only a few manufacturers, such as ASML, provide these advanced light sources, leading to supply constraints. This scarcity restricts the ability of semiconductor companies to adopt EUV lithography at scale, ultimately slowing down advancements in chip production. Additionally, the high cost of developing and maintaining EUV light source technology further limits the number of players in the market, exacerbating supply issues and constraining overall market growth.

This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

EUV Lithography Market Scope

The market is segmented on the basis of light source, equipment, and end user. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Light Source

• Laser Produced Plasmas (LPP)
• Vacuum Sparks
• Gas Discharge

Equipment

• Light Source
• Optics
• Mask
• Others

End User

• Integrated Device Manufacturer (IDM)
• Memory
• Foundry
• Others

EUV Lithography Market Regional Analysis

The market is analyzed and market size insights and trends are provided by light source, equipment, and end user as referenced above.

The countries covered in the market report are U.S., Canada, Mexico in North America, Germany, Sweden, Poland, Denmark, Italy, U.K., France, Spain, Netherland, Belgium, Switzerland, Turkey, Russia, Rest of Europe in Europe, Japan, China, India, South Korea, New Zealand, Vietnam, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in Asia-Pacific (APAC), Brazil, Argentina, Rest of South America as a part of South America, U.A.E, Saudi Arabia, Oman, Qatar, Kuwait, South Africa, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA).

North America is expected to dominate the market because some of the world's leading semiconductor equipment manufacturers, including ASML, are based in North America. ASML, a Dutch company, has a substantial presence in the U.S. and is a key player in the EUV lithography equipment market. Its research and development activities and production facilities in the U.S. contribute to the region's leadership in EUV lithography.

Asia-Pacific is the fastest-growing region in the market due to Asia-Pacific region, particularly countries such as Taiwan, South Korea, and China, has experienced significant growth in the semiconductor industry. Many leading semiconductor manufacturers and foundries are based in this region. As the demand for smaller, more advanced semiconductor devices has increased, so has the adoption of EUV lithography technology to meet these demands.

The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.

EUV Lithography Market Share

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.

EUV Lithography Market Leaders Operating in the Market Are:

• Cannon Inc. (Japan)
• ASML (Netherlands)
• Nuflare Technology Inc. (Japan)
• SAMSUNG (South Korea)
• Intel Corporation (U.S.)
• Nikon Corporation (Japan)
• SUSS Microtec SE (Germany)
• Taiwan Semiconductor Manufacturing Company Limited (Taiwan)
• Ultratech Inc. (U.S.)
• Vistec Electron Beam GmbH (Germany)
• Zeiss International (Germany)
• Toppan Printing Co. Ltd. (Japan)
• NTT Advanced Technology Corporation (Japan)
• Toshiba India Pvt. Ltd. (India)
• Global Foundries (U.S.)

Latest Developments in EUV Lithography Market

• In March 2022, Intel announced the commencement of high-volume production using EUV lithography machines at its new $18.5 billion facility in Ireland. This development marks a significant achievement for Intel, showcasing its capability to manufacture advanced semiconductors at scale with EUV technology. This milestone is crucial for Intel as it strives to regain its competitive edge in the semiconductor market against rivals such as TSMC and Samsung
• In January 2022, ASML and Intel Corporation announced a new phase in their long-standing partnership to advance semiconductor lithography technology. This collaboration focuses on enhancing the capabilities of cutting-edge lithography systems essential for manufacturing increasingly complex microchips. Both companies aim to leverage their expertise to accelerate innovation in the semiconductor field, addressing the growing demands for smaller, more efficient chips across various applications
• In October 2021, Samsung Electronics began mass production of 14-nanometer DRAM chips using extreme ultraviolet (EUV) lithography technology. This advancement signifies a major step forward compared to traditional Arf laser lithography, allowing for finer circuit designs on semiconductor wafers. By adopting EUV technology, Samsung enhances its manufacturing capabilities, positioning itself as a leader in the production of advanced memory solutions crucial for modern electronic devices
• In March 2021, Samsung Electronics intensified its efforts to produce EUV scanners, enhancing its competitive edge against the leading foundry, TSMC. These advanced scanners streamline the chip fabrication process by reducing the number of photolithography steps required for intricate circuit designs. This move underscores Samsung's commitment to adopting next-generation technologies, which are critical for keeping pace in the highly competitive semiconductor landscape

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