Lithography Equipment Market - By Technology (ArF, KrF, i-line, ArF Immersion, Extreme Ultraviolet (EUV) Lithography), By Equipment, By Application (Advanced Packaging, MEMS Devices, LED Devices), By End-use Industry & Forecast, 2023 - 2032

Lithography Equipment Market Size

Lithography Equipment Market was valued at over USD 39.1 billion in 2022 and is anticipated to grow at a CAGR of around 8.1% between 2023 and 2032. The automotive industry is undergoing a significant shift toward electrification. According to the IEA report, the share of electric cars in total sales increased to over 14% in 2022 with over 10 million sales as compared to over 4% in 2020. Major automakers are investing heavily in Electric Vehicle (EV) technology, contributing to the overall rise in demand for semiconductor devices and, consequently, lithography equipment. EVs often incorporate Advanced Driver Assistance Systems (ADAS), which rely on sophisticated sensors and semiconductor components. Lithography equipment is crucial for manufacturing the miniaturized and high-performance sensors and chips used in ADAS, thereby contributing to market growth.
 

Lithography equipment is a vital tool in microfabrication, utilizing light or electron beams to transfer patterns from a mask onto a substrate. Essential in semiconductor manufacturing, it precisely creates intricate structures on a microscopic scale, facilitating the production of advanced electronic components and devices in various industries.
 

The lithography equipment industry requires substantial initial capital investment, particularly for advanced systems such as Extreme Ultraviolet (EUV) lithography. The significant capital investment required for the purchase and installation of lithography equipment can be a barrier for smaller semiconductor manufacturers and may slow down the adoption of cutting-edge lithography equipment.
 

COVID-19 Impact

The COVID-19 pandemic had notable impacts on the lithography equipment market. The semiconductor industry relies on complex global supply chains, with many components sourced from different regions. The pandemic disrupted these supply chains, leading to delays in the production and delivery of lithography equipment components. Lockdowns, factory closures, and transportation restrictions contributed to supply chain challenges. Many semiconductor manufacturers faced economic uncertainties and reduced demand for certain products during the pandemic. This economic uncertainty led some companies to delay or postpone their capital expenditures including investments in new lithography equipment. This, in turn, affected the demand for lithography equipment during the early stages of the pandemic.
 

Lithography Equipment Market Trends

Extreme Ultraviolet (EUV) lithography is gaining traction as a key technology for advanced semiconductor manufacturing. Lithography equipment leveraging EUV technology enables more precise patterning of semiconductor wafers, reducing the complexity associated with multiple patterning techniques. The adoption of EUV lithography is seen as a significant step toward achieving smaller nodes and higher chip densities.
 

Beyond traditional lithography for transistor formation, there is a growing emphasis on advanced packaging technologies. Lithography equipment that supports 2.5D and 3D IC packaging is in demand, enabling the creation of more complex and tightly integrated semiconductor structures. This trend addresses the increasing demand for performance and functionality in a smaller footprint.
 

The integration of AI and ML into lithography equipment is a forward-looking trend. These technologies are being explored to optimize lithography processes, predict potential issues, and improve overall manufacturing efficiency. The use of AI and ML in lithography is aimed at enhancing pattern recognition, reducing defects, and increasing yield.
 

Lithography Equipment Market Analysis

Based on the application, the market is segmented into advanced packaging, MEMS devices, LED devices, and others. The MEMS segment dominated the global market with a share of over 35% in 2022.
 

• The integration of MEMS devices into smart devices and systems continues to grow. MEMS sensors, such as accelerometers and gyroscopes, are integral to features including motion sensing and image stabilization in smartphones and cameras. The demand for MEMS devices with high precision and performance fuels the growth of lithography equipment usage.
   
• Ongoing advancements in MEMS technology including the development of new sensor types and innovative applications fuel the need for advanced lithography equipment. As MEMS devices become more sophisticated, lithography processes enable the fabrication of smaller and more intricate structures.
   

Based on technology, the market is divided into ArF, KrF, i-line, ArF immersion, and Extreme Ultraviolet (EUV) lithography. The Extreme Ultraviolet (EUV) lithography segment is anticipated to register a CAGR of over 10% through 2032. The segment growth is credited to various factors:
 

• EUV lithography offers significantly improved resolution compared to traditional lithography methods. With shorter wavelengths in the extreme ultraviolet spectrum, EUV allows for finer details in the patterning process. This improved precision is essential for manufacturing semiconductor devices with densely packed components.
   
• One of the significant advantages of EUV lithography is its ability to perform single-exposure patterning for certain critical layers. Traditional lithography methods, especially at smaller nodes, often require multiple exposures and complex multi-patterning techniques. EUV's single-exposure capability simplifies the manufacturing process, reducing production time and complexity.
   

Asia Pacific dominated the global lithography equipment market with a share of over 35% in 2022. Asia Pacific is home to some of the world's leading semiconductor manufacturing hubs, including Taiwan, South Korea, China, and Japan. These countries host major semiconductor fabrication facilities and are key players in the global electronics supply chain. The growth of semiconductor manufacturing activities directly correlates with the demand for advanced lithography equipment. The electronics industry in Asia Pacific has experienced significant growth, driven by consumer demand, industrial applications, and technological advancements. The production of electronic devices, ranging from smartphones and tablets to automotive electronics, requires advanced lithography equipment for semiconductor fabrication. The increasing adoption of electronic components in various sectors contributes to the demand for lithography solutions.
 

Lithography Equipment Market Share

The players operating in the market focus on implementing different growth strategies to strengthen their offerings and expand their market reach. These strategies involve new product development & launches, partnerships & collaborations, mergers & acquisitions, and customer retention. The major players operating in the lithography equipment industry are:

• ASML Holding N.V.
• Nikon Corporation
• Canon Inc.
• Veeco Instruments Inc.
• SUSS MicroTec AG
• Onto Innovation Inc.
• JEOL Ltd
   

Lithography Equipment Industry News

• In March 2022, Nikon Corporation launched FX-88S, new Gen 8 plate FPD lithography system to enhance the production of various high-definition panels. In order to produce high-definition panels in large quantities, the FX-88S integrates the i-line projection lens, which was first created for the G6 plate FPD lithography system FX-68SH/68S. With the FX-88S, the i-line projection lens was fully improved, allowing for a high resolution of 1.5 μm for Gen 8 plates.
   

The lithography equipment market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD billion) from 2018 to 2032 for the following segments:

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Market, By Technology

• ArF
• KrF
• i-line
• ArF immersion
• Extreme Ultraviolet (EUV) lithography

Market, By Equipment

• Optical lithography/photolithography
• Mask aligners
• Electron beam lithography
• Ion lithography
• X-Ray lithography
• Nanoimprint lithography
• Others

Market, By Application

• Advanced packaging
• MEMS devices
• LED devices
• Others

Market, By End-use Industry

• Electronics manufacturing
• Healthcare & life sciences
• Automotive industry
• Telecommunications
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA