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Extreme Ultraviolet Lithography Market

Extreme Ultraviolet Lithography Market: Information by Product Type (Light Sources, Mirrors, and Masks), Type (Foundry and Integrated Device Manufacturer), and Regions—Forecast Till 2031

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Market Overview

The global extreme ultraviolet lithography market size was valued at USD 9,998.41 million in 2022. It is expected to reach USD 40,356.4 million by 2031, growing at a CAGR of 16.77% during the forecast period (2023–2031).

One of the top next-generation lithography (NGL) techniques used to print lines as thin as 30 nm and create microprocessors and microchips is extreme ultraviolet lithography (EUVL). This method might take the place of optical lithography, which is currently used to design microcircuits. Ultraviolet solid light beams that are reflected off a silicon wafer are burned into the silicon wafer by the EUVL system.

Market Snapshot

market snapshot
Base Year
: 2022
Study Period
: 2021-2031
: 16.77 %
Fastest Growing Market
: South Korea
Largest Market
: Taiwan
Market Size
: USD 40,356.4 million by 2031
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Market Dynamics

Global Extreme Ultraviolet Lithography Market Drivers

Growing Demand for Microchips

The need for semiconductors has become a growing issue for many industries, particularly those producing electronic and automotive products. With the 5G boom in Europe and parts of Asia, including China and Singapore, the demand for microchips is also likely to increase. In 2022, 5G usage will likely increase, benefiting the semiconductor industry. The increase in microchip production will impact the growing need for EUV lithography technology across the industry. The United States, China, and some European nations are beginning to show signs of change as their microchip research and development investments rise.

In addition, major US technology corporations like Amazon, Google, Microsoft, and others are following suit with assets worth hundreds of millions of dollars. The industry will become more resilient by spreading capability across more businesses and to more low- and middle-income nations. Additionally, the development of autonomous vehicles, 5G communications, and AI will be powered by more affordable and effective microchips, which is a fantastic opportunity for the company. The demand for AI chips will increase, propelling some businesses' evolutionary features and allowing others to disrupt the market.

Manufacturers Streamlining the Process to Increase Efficiency

AI also contributes significantly to risk assessment by enabling businesses to anticipate market trends and seize available opportunities. It lowers the risk brought on by changes in the market and logistics. The final component of a flawless semiconductor supply chain process is the continuous real-time scanning for defects made possible by AI and predictive systems. Identifying defective materials enables manufacturers to raise the quality of their products significantly, increase yield to meet demand, and avoid material and financial waste. Outside the semiconductor industry, the market for chip design has been expanding. Chip manufacturers are streamlining their production methods to increase productivity. Some businesses have created chip designs for their unique use cases in consumer electronics (CE), aerospace, and vertical automotive industries. This strategy gives them more control over cost, features, performance, and time to market, frequently resulting in market differentiation and competitive advantage.

Global Extreme Ultraviolet Lithography Market Restraints

Existence of a Monopoly in the Market

According to Seeking Alpha, ASML dominates the semiconductor lithography industry with a market share of about 100% in EUV and 88% in DUV Immersion. In terms of e-beam patterned wafer inspection, ASML holds a 74% market share in the semiconductor metrology/inspection sector. With no immediate or future competition and only Intel and TSMC as rivals, ASML enjoys a monopolistic market monopoly in the EUV and DUV sectors. Due to the high cost of EUV and DUV equipment, ASML will continue to have a larger revenue share than the overall lithography sector. The market will expand considerably more slowly since consumers will have less negotiating power due to this monopoly. Customers cannot choose another supplier to meet their needs, and suppliers who need EUV lithography systems from ASML also depend on ASML. This limits the potential for future technological development.

Global Extreme Ultraviolet Lithography Market Opportunity

Impact of 5G technology

Extreme-ultraviolet lithography technology is anticipated to continue to be in demand in the future due to the continued emergence of opportunities for semiconductors such as 5G, the internet of things (IoT), and autonomous driving. As a result, semiconductor manufacturing companies will likely focus on incorporating advanced manufacturing technologies. Once 5G technology becomes widely used, it is anticipated to significantly impact the global semiconductor industry. The 5G chipset allows for quicker data processing and transfer. These aspirational integrated chipsets should transmit data ten times faster than 4G. In this distinct ecosystem, semiconductors might meet new requirements.

Segmental Analysis

Based on the product, the global extreme ultraviolet lithography market is bifurcated into light sources, mirrors, and masks.

The global market is segmented by product and type.

The masks segment is the highest contributor to the market and is expected to grow at a CAGR of 16.56% during the forecast period. An opaque plate or film with transparent regions letting the light shine through it in a specific pattern is a typical mask. Masks are frequently used in the photolithography method used to produce semiconductor chips. They are available in various sizes. Masks come in a variety of varieties, including optical and EUV masks. The growth of flat-panel displays (FPD) due to the increased use of operational amplifiers and the surge in automated systems across various industry verticals is anticipated to present significant opportunities for developing photomasks.

Despite facing difficulties in almost every area of EUVL technology since its inception, extreme ultraviolet lithography (EUVL) has emerged as one of the most promising next-generation lithography methods. Commercial step-and-scan preproduction tools are now installed and fully functional in the field. Light with a wavelength of 13.5 nanometers is used in EUV lithography, which is more than 14 times shorter than DUV light. It is possible to employ a small numerical aperture and avoid the problem of self-vignetting in all-reflective optics because of the extremely short wavelength. The technology to create EUV light sources using the laser-produced plasma (LPP) technique has been developed by ASML, one of the top suppliers of EUV systems.

Based on type, the global market is bifurcated into the foundry and integrated device manufacturers (IDMS).

The foundry segment owns the highest market and is expected to grow at a CAGR of 17.19% during the forecast period. The market for extreme ultraviolet (EUV) lithography is expanding due to the adoption of this technology for chip manufacturing and wafer fabrication by various foundries, including Samsung, Taiwan Semiconductor Manufacturing Company (TSMC), and others. By beginning high-volume production of 3-nm products by the end of 2022, TSMC Taiwan intends to dominate the international foundry market. Samsung Electronics Co. Ltd. plans to surpass TSMC in 2030 using its ultraviolet (EUV) lithography technology. In 2024, the company plans to start producing items using a 2-nm process. To meet the growing demand, TSMC and Sony Semiconductor Solutions Co. Ltd (SSS) also partnered to create a subsidiary in Kumamoto, Japan, called Japan Advanced Semiconductor Manufacturing Co. Ltd (JASM) to offer foundry services for the 22/28 nanometer process.

An integrated device manufacturer is a semiconductor business that produces, designs, and sells integrated circuits (ICs). A traditional IDM owns its own locally branded chips, designs its ICs internally, and has a fabrication facility to produce them. However, the advancement of the market can be attributed to the growing investments made by integrated device manufacturer (IDM) companies to improve their research and development (R&D) activities and create technically advanced semiconductor ICs, sensors, RFID circuits, and systems on chips. To increase their IC production capacities, these players frequently work with suppliers of semiconductor manufacturing equipment. The industry's participants strongly emphasize improving their IC manufacturing facilities. Due to this circumstance, the market's demand for machinery manufacturing semiconductors is predicted to increase.

Regional Analysis

By region, the global extreme ultraviolet lithography market is segmented into South Korea, Taiwan, The United States, and Other Countries.

Taiwan Dominates the Global Market

Taiwan is the most significant revenue contributor and is expected to grow at a CAGR of 18.44% during the forecast period. Taiwan has an advantage in the international market. The extreme ultraviolet (EUV) lithography market in Taiwan is expanding due to factors including TSMC's expansion into Taiwan and increasing investments in EUV lithography technology. This nation has the largest revenue share in EUV lithography in the Asia-Pacific region. Taiwan is also making significant investments in EUV lithography technology. For instance, Micron Technology decided to install NXE:3600D, the most recent lithography equipment from ASML, in September 2021. Additionally, Micron Technology will set up the same EUV lithography machinery at its Taiwanese DRAM manufacturing facility. Taiwan will be the location of Micron Technology's first EUV DRAM production, and the company plans to increase its investment there over the coming years.

South Korea is expected to grow at a CAGR of 16.98% during the forecast period. South Korea has realized the importance of adopting EUV lithography technology as semiconductor geometries tend to shrink. It offers an ideal and effective option for next-generation applications, such as AI, 5G, and automotive, enabling the scaling down of complex patterns on wafers. A contract to establish a lithography cluster in South Korea by investing SKW 240 billion (USD 202 million) by 2024 was signed in November 2021 by ASML Holding, a Dutch producer of chip-making machinery. Many South Korean semiconductor companies have received deep ultraviolet and extreme ultraviolet lithography systems from ASML.

The United States is a significant market for EUV lithography systems because of the nation's ongoing technological advancements. The demand for microchips is increasing along with the requirements for artificial intelligence (AI), 5G connectivity, augmented reality, and many other systems. This creates significant opportunities for players in the country's EUV lithography market. Manufacturers want to offer procedures or solutions to customers who use the most recent technologies, like 5G, as demand for autonomous vehicles rises in the US.

Countries like the Netherlands, China, Germany, and Japan are in these other regions. The world market will benefit from ASML's new training facility. Although the company is the biggest name in European semiconductor machinery, its biggest client is the most well-known Taiwanese manufacturer. According to the Asian Nikkei Review, TSMC received 20 of the 35 EUV systems that ASML shipped in 2021. The Dutch company is laying the groundwork for future sales by introducing the chipmaker's staff to its tools. By 2023, ASML expects more than 500 employees to work locally, thanks to opening a new R&D facility in Taiwan. Amid trade tensions with the United States, Chinese semiconductor manufacturers use chip-making machines to produce domestic goods quickly. This situation is driving up the cost of various pieces of equipment on the secondary market in Japan. The used equipment dealers in Japan claim that in just one year, prices have gone up by 20%. The US sanctions against China do not apply to older machines, allowing Chinese players full access. As a result, in the upcoming years, critical opportunities for stakeholders will be generated by the extreme ultraviolet lithography market in China and Japan.

Extreme Ultraviolet Lithography Market Regional Analysis
Regional Growth Insights Download Free Sample

Top Key Players of Extreme Ultraviolet Lithography Market

  1. ASML Holding NV
  2. NTT Advanced Technology Corporation
  3. Intel Corporation
  4. Taiwan Semiconductor Manufacturing Company Limited
  5. Samsung Electronics Co. Ltd
  6. Toppan Photomasks Inc.
  7. Ushio Inc.

Report Scope

Report Metric Details
CAGR 16.77%
Forecast Period 2023-2031
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
Segments Covered
  1. By Product Type
    1. Light Sources
    2. Mirrors
    3. Masks
  2. By Type
    1. Foundry
    2. Integrated Device Manufacturers (IDMS)
Geographies Covered
  • North America
  • Europe
  • APAC
  • Middle East and Africa

Recent Developments

  • June 2022- Along with Mad Science, ASML introduced a new technology education program. All 271 primary schools in the Brainport-Eindhoven region will receive technology instruction through the program known as the ASML Junior Academy. This implies that Mad Science will instruct roughly 60,000 kids in technology each year through the program. In September, fifty primary schools will be the starting point for the ASML Junior Academy.
  • June 2022- IITG and NTT-AT signed a Memorandum of Understanding (MOU) to advance industry-academia collaboration on advanced technologies through information sharing, collaborative research, and resource exchanges.

Extreme Ultraviolet Lithography Market Segmentation

By Product Type

  • Light Sources
  • Mirrors
  • Masks

By Type

  • Foundry
  • Integrated Device Manufacturers (IDMS)

By Regions

  • Taiwan
  • South Korea
  • The United States
  • Other Countries

Frequently Asked Questions (FAQs)

What is the market size of extreme ultraviolet lithography in 2031?
The global extreme ultraviolet lithography market size was valued at USD 40,356.4 million in 2031.
masks is the leading segment for the market during forecast period
Key verticals adopting extreme ultraviolet lithography market include: -ASML Holding NV, NTT Advanced Technology Corporation, Intel Corporation, Taiwan Semiconductor Manufacturing Company Limited, Samsung Electronics Co. Ltd, Toppan Photomasks Inc., Ushio Inc.
Impact of 5G technology is one of the key trends in market.
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