Extreme Ultraviolet (EUV) Lithography

EUV Lithography market is a secondary market segment of the semiconductor industry that is required for producing chips at advanced nodes like 5nm, 3nm, and beyond. EUV lithography, with a wavelength of 13.5 nm, is used for high-resolution patterning of semiconductor wafers and is required for the development of smaller faster more efficient chips. This is key to unleashing innovations in AI, 5G, the IoT, autonomous vehicles, and consumer electronics. Mainly driven by the rising market need for high-performance chips, significant investment by industry giants such as TSMC, Samsung, and Intel, and rapid advancements in semiconductor fabrication technology. The adoption of EUV lithography worldwide is also assisted by government funding and the establishment of semiconductor supply chains by government initiatives.

The Extreme Ultraviolet Lithography Market is expected to grow at a robust CAGR of 12.8% during the forecast period, owing to the rising demand for advanced semiconductor nodes, significant investments in R&D and manufacturing, and the rapid adoption of AI, 5G, and IoT technologies. Recent mergers, acquisitions, and investments reflect the strategic importance of EUV lithography in the semiconductor market. For instance, ASML's acquisition of Berliner Glas Group in November 2020 enhanced its supply chain for optical components critical to EUV systems. Similarly, Intel’s $20-billion project to build Fab 52 and Fab 62, with general contractor Hoffman Construction Co.—which has previously built other fabs at the campus—started in 2021. Fab 52 is expected to come online in 2024, followed by Fab 62 next year. This highlights the industry's commitment to increasing domestic semiconductor production. The market has also seen the emergence of innovative startups like LithoVision and Mapper Lithography, focusing on complementary technologies for lithography systems.

The US, South Korea, and Taiwan are the fastest-growing countries in the EUV lithography market, fuelled by their strong semiconductor ecosystems and massive investments in the most advanced manufacturing technologies. With huge CHIPS Act investments and new fabs by Intel and TSMC, the U.S. is growing rapidly. Samsung and SK Hynix of South Korea have a bet on themselves expanding foundry capacity to ride global demand for advanced chips. TSMC, headquartered in Taiwan, is still leading the world in chip production because it has the most advanced abilities and the capacity of high volume make. Also, China is increasingly taking a more active role, with deep government investments to reduce reliance on foreign semiconductor technology and achieve technological self-reliance. The future of the EUV lithography market is being driven by these countries, in both fostering and scaling up innovation.

• Based on Component, the market is categorized into Light Source, Optics, Mask, and Others. Among these, Light Source is growing with a significant CAGR. Demand for high-intensity, stable, and efficient EUV light generation is the primary driver of the EUV lithography market’s Light Source segment due to a need for high-precision patterning of advanced semiconductor nodes. Exponentially, the demand for powerful and reliable light sources has grown as the industry is shifting towards smaller nodes such as 3nm or 2nm. The type of light sources most commonly used to generate these light sources, usually high-powered lasers and tin plasmas, are essential to meet the requisite wavelength precision and throughput necessary for advanced chip manufacturing. Moreover, the segment’s growth is driven by advancements in light source technology, which seeks to increase energy efficiency and decrease operational costs while improving productivity and meeting strict quality standards.
• Based on End-User, the Extreme Ultraviolet Lithography market is divided into Integrated Device Manufacturers and Foundries. The Foundries segment registered a significant CAGR during the forecast period. Demand for custom, high-performance semiconductor chips for sectors including automotive, 5G, AI, and consumer electronics is the main driver of the Foundries segment of the EUV lithography market in the EU. Key players such as TSMC, Samsung, and GlobalFoundries are shifting their attention to EUV technology adoption in foundries to meet the deployment of more and more advanced nodes like 5nm, 3nm, and beyond. To continue to keep up with the demand for faster, more energy efficient, higher capacity chips and keep up with competition, this is needed. Additionally, the arrival of fabless semiconductor companies sending their chip production to the foundries has hastened the addition of EUV lithography in this segment since it is necessary for scaling down the chip designs and meeting technological restrictions.
• For a better understanding of the market adoption of the Extreme Ultraviolet Lithography industry, the market is analyzed based on its worldwide presence in countries such as North America (U.S.A., Canada, and Rest of North America), Europe (Germany, United Kingdom, France, Spain, Italy, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, and Rest of Asia-Pacific), Rest of World. In the EUV lithography market, the Asia-Pacific (APAC) dominates, mostly due to the large number of major semiconductor manufacturers in the APAC region, including TSMC, Samsung, and SK Hynix, which play a role in manufacturing a majority of the world’s chip. Further strengthening the region’s growth is strong government support and initiatives, notably in Taiwan, South Korea, Japan, and China where advanced manufacturing capabilities were developed, and ties to foreign technology have been cut. In addition, there is also a strong demand for advanced semiconductors in the region's rapidly growing electronics, automotive, and telecommunications sectors which, in turn, drive the adoption of EUV technology. APAC continues to invest heavily in R&D, cutting-edge fabrication facilities, and strategic partnerships to lead the world in the global semiconductor and EUV lithography ecosystem.
• Some of the major players operating in the market include ASML Holding NV, NTT Advanced Technology Corporation, Canon Inc., Nikon Corporation, Intel Corporation, Taiwan Semiconductor Manufacturing Company Limited, Samsung Electronics Co. Ltd., Toppan Photomasks Inc., ZEISS Group, and Ushio, Inc.