Global Semiconductor Lithography Equipment Market Grows at a Staggering CAGR of 5.10%

Introduction

Many electrical parts and devices, such as memory chips and computer microprocessors, contain electrical circuits that are patterned using semiconductor lithography at the nanometer scale. Semiconductor lithography equipment is essential when developing new technological products incorporating semiconductor circuits.

Market Dynamics

Growing Innovation by Top-Tier Semiconductor Suppliers and Vendors Drives the Global Market

Leading semiconductor equipment suppliers, including ASML, Nikon, and Canon, strongly support the creation of new lithography tools. In December 2020, Canon USA Inc. disclosed that the FPA-3030i5a might be made available for purchase by Canon Inc. in March 2021. In addition, the FPA-3030i5a has been added to the company's lineup of i-line1 semiconductor lithography systems that support the manufacturing of devices, including compound semiconductors. The FPA-3030i5a is also designed to help reduce the cost of ownership (CoO), a metric for the total costs associated with semiconductor manufacturing. It is anticipated that such rapid manufacturer changes will grab consumers' attention during the forecast period and speed up market expansion.

Growing Demand in Various End-User Industries Creates Tremendous Opportunities

The semiconductor lithography equipment market is anticipated to grow in the coming years due to the exponential growth of semiconductors in many end-user industries. EUV systems, which support high-volume manufacturing of memory and logic, saw a 60% increase in sales at ASML in 2020. Revenue from DUV systems surpassed that of EUV equipment in 2020 by almost USD 1 billion. Some vendors are creating next-generation semiconductor manufacturing machinery to miniaturize circuit patterns and lower manufacturing costs. In order to meet the demand for better performance, lower power consumption, and smaller geometries in mobile and automotive applications, the semiconductor market is seeing an increase in advanced packaging technologies like FO/FI WLP, Flip Chip, 3D stacking, interposers, and embedded die. These elements will strengthen the market over the forecast period.

Regional Analysis

Asia-Pacific is the most significant shareholder in the global semiconductor lithography equipment market and is expected to grow at a CAGR of 10.13% during the forecast period. Chinese semiconductor producers use old chipmaking machines to produce domestic goods amid US-Sino trade tensions, driving up equipment prices in Japan's secondary market. Japan's used equipment dealers say prices are up 20% year-over-year. Chinese players have full access to older machines exempt from U.S. sanctions. Another factor is the rise in stay-at-home behavior brought on by the coronavirus pandemic. Even less modern equipment is selling quickly as chip demand increases globally. As a result, the shortage of semiconductors used in automobiles may continue.

North America is expected to grow at a CAGR of 9.22%, generating USD 9.77 billion during the forecast period. Strong U.S. capabilities and R&D dominance are advantageous for all semiconductor market segments. However, it lacks companies in some important subsectors, particularly photolithography tools (the most expensive and complex form of SME). Due to this, the United States is innovating in semiconductor manufacturing, design, and research. The US, a world leader in innovative semiconductor packaging, has 80 wafer fabrication facilities across 19 states. Additionally, technological advancements in consumer electronics, such as smartphones, tablets, smart home appliances, and wearables, drive the demand for small integrated circuits. As a consequence of this, lithography equipment is significantly more critical.

Key Highlights

• The global semiconductor lithography equipment market was valued at USD 4,491.30 million in 2021. It is expected to reach USD 7,027.43 million by 2030, growing at a CAGR of 5.10% during the forecast period (2022–2030).
• Based on type, the global semiconductor lithography equipment market is bifurcated into deep ultraviolet Lithography (DUV) and extreme ultraviolet lithography (EUV). The deep ultraviolet lithography (DUV) segment is the highest contributor to the market and is expected to grow at a CAGR of 8.84% during the forecast period.
• Based on application, the global semiconductor lithography equipment market is bifurcated into advanced packaging, MEMS devices, and LED devices. The MEMS devices segment owns the highest market share and is expected to grow at a CAGR of 9.03% during the forecast period.
• Asia-Pacific is the most significant shareholder in the global semiconductor lithography equipment market and is expected to grow at a CAGR of 10.13% during the forecast period.

Competitive Players

Competitive Players

The global semiconductor lithography equipment market’s major key players are Canon Inc., Nikon Corporation, ASML Holding NV, Veeco Instruments Inc., SÜSS MicroTec SE, Shanghai Micro Electronics Equipment (Group) Co. Ltd, EV Group (EVG), JEOL Ltd, Onto Innovation (Rudolph Technologies Inc.), and Neutronix Quintel Inc (NXQ).

Recent Developments

Market News

• In September 2022, According to a press release from Canon Inc., the business will soon start selling the "Lithography Plus1" solution platform for semiconductor lithography systems. To maximize support efficiency and suggest and implement optimized system processes, the system uses Canon's more than 50 years of experience in semiconductor lithography system support.
• In May 2022, The merger of its subsidiary SUSS MicroTec Lithography GmbH into SUSS MicroTec Photomask Equipment GmbH & Co. KG was completed by SÜSS MicroTec SE, a leading provider of machinery and process solutions for the semiconductor industry. SUSS MicroTec Photomask Equipment GmbH & Co. KG becomes SUSS MicroTec Solutions GmbH & Co. KG due to the merger.

Segmentation

Global Semiconductor Lithography Equipment Market: Segmentation

By Type

• Deep Ultraviolet Lithography (DUV)
• Extreme Ultraviolet Lithography (EUV)

By Applications

• Advanced Packaging
• MEMS Devices
• LED Devices

By Regions

• North America
• Europe
• Asia-Pacific
• Rest of the World