Semiconductor Lithography Equipment Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Market Size (2025) | USD 27.80 Billion |
| Market Size (2030) | USD 43.70 Billion |
| Growth Rate (2025 - 2030) | 9.47% CAGR |
| Fastest Growing Market | Middle East and Africa |
| Largest Market | Asia Pacific |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
|
Semiconductor Lithography Equipment Market Analysis by Mordor Intelligence
The semiconductor lithography equipment market size is USD 27.8 billion in 2025 and is forecast to reach USD 43.70 billion by 2030, reflecting a 9.47% CAGR. Momentum stems from the shift toward extreme ultraviolet (EUV) and forthcoming High-NA EUV platforms, the surge in artificial-intelligence servers, and multi-trillion-transistor graphics accelerators that demand denser patterning precision. Asia-Pacific remains the fulcrum of manufacturing capacity expansions, led by Taiwan’s foundry dominance and South Korea’s USD 471 billion mega-cluster program. Deep-ultraviolet (DUV) tools still anchor mature nodes, but the pipeline of High-NA EUV orders shows how quickly the ecosystem is pivoting toward sub-1 nm production. Capital-expenditure intensity and export-control compliance are the main brakes on diffusion, yet government subsidies, packaging innovations, and energy-efficient tool designs together widen the addressable base for advanced exposure systems.
Key Report Takeaways
- By lithography type, DUV retained 56.80% of 2024 revenue, while High-NA EUV is expanding at a 10.70% CAGR through 2030.
- By application, advanced packaging led with a 38.20% share in 2024; power and compound semiconductors are progressing at a 10.90% CAGR to 2030.
- By end-user, pure-play foundries captured 49.70% of 2024 demand and are accelerating at a 12.30% CAGR through 2030.
- Geographically, Asia-Pacific commanded 68.30% of 2024 sales; the Middle East and Africa represent the quickest climb with a 12.69% CAGR to 2030.
Global Semiconductor Lithography Equipment Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Shrinking process nodes drive EUV adoption | +2.80% | Global, with concentration in Taiwan, South Korea, and advanced U.S. fabs | Medium term (2-4 years) |
| AI and data-center demand for leading-edge chips | +2.10% | Global, with primary impact in Asia-Pacific and North America | Short term (≤ 2 years) |
| Government fab subsidies (e.g., CHIPS Act) | +1.60% | North America, Europe, and emerging Middle East markets | Long term (≥ 4 years) |
| Advanced-packaging boom (2.5D/3D IC) | +1.40% | Global, with leadership in Taiwan and advanced packaging hubs | Medium term (2-4 years) |
| High-NA EUV refresh accelerates tool cycles | +0.90% | Leading-edge fabs in Taiwan, South Korea, and select U.S. facilities | Long term (≥ 4 years) |
| Compound-semiconductor lithography demand | +0.70% | Global, with concentration in power electronics and automotive markets | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Shrinking Process Nodes Drive EUV Adoption
Growing transistor density forces sub-7 nm geometries that only EUV can achieve. TSMC recorded first light on a High-NA tool in Hsinchu as it prepares 1 nm mass output by 2030.[1]Elaine Huang, “Taiwan Enters Angstrom Era with ASML's High-NA EUV,” CommonWealth Magazine, english.cw.com.tw ASML’s EXE platform reaches 8 nm resolution with anamorphic optics, a 40% imaging-contrast jump over prior NXE models. Research teams demonstrated 5 nm line-space interference printing, confirming far-below-roadmap capability. Server-class processors are projected to double to 200 billion transistors, magnifying lithography throughput needs. These milestones underline a rapid cadence toward angstrom dimensions that places High-NA tools at the center of capex priorities.
AI and Data-Center Demand for Leading-Edge Chips
Artificial-intelligence servers require multi-chiplet GPUs pushing past 2 trillion transistors. Semiconductor revenue is modeled to top USD 1 trillion by 2030, with AI accelerators and high-bandwidth memory as primary growth engines.[2]Editors, “Latest Technology Trends in the Semiconductor Industry,” Tokyo Electron Blog, tel.com Advanced packaging formats such as CoWoS intensify lithography overlay accuracy for redistribution layers. Samsung’s heterogeneous-integration roadmap and TSMC’s CoWoS capacity ramp have driven rush orders for large-panel exposure tools. Abu Dhabi’s 1-5 GW AI compute cluster, featuring hundreds of thousands of GPUs, signals new geographies entering the capex cycle.
Government Fab Subsidies Drive Equipment Investment
The U.S. CHIPS and Science Act unlocked USD 8.5 billion in direct grants for Intel and USD 6.6 billion for TSMC Arizona projects, each bundled with multibillion-dollar loan packages. Europe’s EUR 2.5 billion (USD 2.7 billion) Project Beethoven and ASML’s EUR 1 billion (USD 1.09 billion) Zeiss stake deepen regional technology self-reliance.[3]Editors, “ASML invests €1 billion in Zeiss to boost EUV lithography,” Electro Optics, electrooptics.com Saudi Arabia’s SAR 1 billion (USD 266 million) National Semiconductor Hub shows an emerging-market template backed by sovereign venture capital. Subsidies also fund workforce initiatives; Tokyo Electron is adding 10,000 employees and lifting entry salaries by 40%.
Advanced-Packaging Boom Accelerates Equipment Demand
Heterogeneous integration, chiplets, and hybrid bonding require sub-micron overlay across panels exceeding 500 mm. Nikon unveiled digital-litho tools delivering 1.0 µm L/S accuracy for panel-level packaging, diversifying a segment long dominated by projection steppers. Power-device migration to SiC and GaN widens the equipment mix; Infineon’s 200 mm SiC line and Wolfspeed’s Mohawk Valley fab both mandate new mask sizing and stepper configurations. Tokyo Electron’s AI-assisted cryogenic etch process shortens cycle time 2.5-fold and lowers power 40%, illustrating supplier efforts to lift total-cost-of-ownership efficiency.[4]Editors, “Latest Technology Trends in the Semiconductor Industry,” Tokyo Electron Blog, tel.com
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Ultra-high capex of EUV scanners | -1.80% | Global, with particular impact on emerging markets and smaller fabs | Short term (≤ 2 years) |
| Sub-system supply-chain bottlenecks | -1.20% | Global, with concentration in European and Asian supply networks | Medium term (2-4 years) |
| Sustainability and energy-use pressures | -0.90% | Global, with emphasis in Europe and environmentally conscious markets | Long term (≥ 4 years) |
| Export-control restrictions to China | -1.40% | China and related supply chains, with spillover effects globally | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Ultra-High Capex of EUV Scanners
ASML’s High-NA units list at USD 380 million each, double the cost of early EUV platforms[5]Editors, “ASML invests €1 billion in Zeiss to boost EUV lithography,” Electro Optics, electrooptics.com. Total cost of ownership multiplies after clean-room reconfiguration, vibration isolation, and megawatt-class power-and-cooling utilities. Fewer than 20 High-NA machines are likely installed worldwide by end-2025, leaving mid-tier fabs locked out of the angstrom race. Research at the Okinawa Institute proposes a two-mirror projector and a 20-W source that could shrink power draw by 90%, hinting at future capex relief.
Export-Control Restrictions to China
U.S. trade rules have blocked EUV and most immersion DUV shipments to China since 2019, eliminating a potential EUR 10.2 billion revenue line for ASML in 2024. October 2023 revisions tightened service and spare-part flows, clouding KLA’s 43% China revenue share outlook[6]KLA Investor Relations, “KLA Corporation Reports Fiscal 2025 Fourth Quarter and Full Year Results,” KLA, kla.com. Domestic efforts respond in kind: Shanghai Institute of Optics reached 3.42% conversion efficiency in a solid-state plasma EUV source, narrowing the gap to commercial benchmarks. Tool vendors are balancing compliance with long-term customer retention; Tokyo Electron is expanding domestic Japanese capacity to offset potential licensing delays.
Segment Analysis
By Lithography Type: High-NA EUV Drives Next-Generation Scaling
In 2024, DUV platforms maintained 56.80% semiconductor lithography equipment market share, underlining their role in mature-node and cost-sensitive lines. High-NA EUV, although a smaller slice of the semiconductor lithography equipment market size today, is forecast to grow 10.70% CAGR through 2030 as single-exposure 1 nm imaging becomes a production reality. The 0.55 NA anamorphic projection inside ASML’s EXE series improves depth-of-focus, enabling defect-density targets previously unattainable without quadruple patterning. Imec’s 90% electrical yield on 20 nm pitch metal lines corroborates readiness for volume runs.
Conventional EUV remains indispensable for 5 nm logic, NAND flash, and DRAM refreshes, where 0.33 NA offers acceptable overlay with multi-patterning. Deep-UV immersion, already fully depreciated at many fabs, keeps the cost-per-die edge for analog, RF, and MEMS flows. Canon’s nano-imprint pilot lines and Nikon’s immersion enhancements signal niche competitive threats, yet ecosystem lock-in around ASML reticle formats sustains its platform moat.
Note: Segment shares of all individual segments available upon report purchase
By Application: Power Semiconductors Accelerate Fastest Growth
Advanced packaging secured 38.20% of 2024 revenue as foundries adopted 2.5D silicon interposers and 3D stacked HBMs to boost AI chip bandwidth. Panel-level steppers offering 1.0 µm overlay have become standard purchase orders among OSATs. Power and compound semiconductors, however, lead growth at 10.90% CAGR, expanding the semiconductor lithography equipment market size for this category through higher-voltage SiC MOSFETs and GaN HEMTs used in electric vehicles and solar inverters.
MEMS microphone and LiDAR arrays, plus micro-LED display backplanes, round out specialty flows but require unique etch-litho co-design. As 300 mm MEMS adoption rises, stepper makers must tackle thicker resist stacks and non-planar topographies, broadening serviceable revenue streams. Innovations such as Tokyo Electron’s AI-controlled plasma etcher shorten advanced package cycle times, reinforcing lithography-adjacent pull-through across toolsets.
By End-User: Foundries Lead Investment and Growth
Pure-play foundries commanded 49.70% semiconductor lithography equipment market share in 2024 and posted the fastest 12.30% CAGR through 2030, driven by risk-sharing models and multi-customer volume leverage. Their early-adopter status for High-NA accelerates learning curves and improves tool utilization.
Integrated Device Manufacturers (IDMs) balance captive production with strategic external sourcing, focusing lithography capex on memory or strategic compute products where vertical control adds differentiation. OSATs, while the smallest buyers, are key in back-end EUV and maskless e-beam niches as heterogeneous integration blurs the front-to-back-end boundary. SkyWater Technology’s multibeam system illustrates OSAT-driven lithography innovation beyond traditional wafer-fab walls.
Note: Segment shares of all individual segments available upon report purchase
Geography Analysis
Asia-Pacific’s 68.30% share in 2024 reflects the agglomeration of logic and memory megafabs across Taiwan, South Korea, Japan, and mainland China. South Korea’s USD 471 billion cluster will add multiple EUV suites, while Japan’s government incentives lure TSMC into second-phase Kumamoto construction. China, despite export curbs, still spent USD 49 billion on overall fab tools in 2024 as domestic lithography projects scale.
North America ranks second, fueled by CHIPS Act co-funding that pushes combined Intel, TSMC, and Samsung U.S. projects past USD 200 billion. Arizona’s twin-fab campus alone will deploy more than 25 EUV scanners over the forecast horizon. Fab clusters in Oregon, Ohio, and Texas broaden geographic redundancy and strengthen regional tool-service demand.
The Middle East and Africa, though small today, show a 12.69% CAGR. Saudi Arabia’s SAR 1 billion venture fund underpins the National Semiconductor Hub, while UAE data-center projects necessitate local advanced-packaging capacity. Government-to-government technology-transfer accords expedite timeline compression, but workforce and supply-chain depth remain developmental bottlenecks.
Competitive Landscape
Market concentration is exceptional: ASML owns the entire commercial EUV install base and 90% of immersion DUV sales. Its EUR 1 billion (USD 1.09 billion) Zeiss stake secures optics roadmaps beyond 0.55 NA, reinforcing a platform lock-in effect. Tokyo Electron dominates EUV resist-coat tracks, cementing captive share via co-development agreements. KLA leads process control with 43% of shipments going to China, yet faces friction with export licenses.
Competitive tension surfaces from Nikon’s DUV upgrades, Canon’s nano-imprint pathway for memory, and EV Group’s wafer-level optics in packaging steppers. Research-driven entrants are exploring low-power EUV projectors that promise to disrupt the cost curve by reducing power-wall constraints.
Strategic themes center on sustainability, cycle-time reduction, and geographic redundancy. Tool makers invest in smart factories. Tokyo Electron’s USD 700 million Miyagi plant is built as a net-zero energy site and deepens university alliances for talent pipelines. ASML funds photonics research at Eindhoven University of Technology to diversify its knowledge of light sources and secure long-term technological sovereignty.
Semiconductor Lithography Equipment Industry Leaders
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ASML Holding N.V.
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Nikon Corporation
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Canon Inc.
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Veeco Instruments Inc.
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SÜSS MicroTec SE
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- May 2025: ASML invested EUR 1 billion (USD 1.09 billion) for a 24.9% Carl Zeiss SMT stake to accelerate >0.55 NA optics-securing exclusive supply and lowering development risk while extending its technology moat.
- April 2025: Shanghai Institute of Optics achieved 3.42% conversion efficiency in a solid-state plasma EUV source, positioning China closer to domestic scanner independence and reshaping long-term supply-chain bargaining power.
- February 2025: Imec reported 90% electrical yield at 20 nm pitch using High-NA single patterning, validating readiness for sub-2 nm volume logic and giving tool vendors proof points for fab adoption roadmaps.
- February 2025: Tokyo Electron broke ground on a JPY 104 billion (USD 700 million) Miyagi plant to scale plasma etch capacity, aligning supply with projected High-NA EUV layer growth and embedding smart-production logistics for cost efficiency.
Global Semiconductor Lithography Equipment Market Report Scope
A semiconductor lithography system at its core is a projection system. This equipment is used to draw highly complex circuit patterns on a photomask that is usually made of large glass plates. To do this, these types of equipment reduce the size of the circuit pattern using ultra-high-performance lenses and expose them onto a silicon substrate called a wafer. The lithography equipment is broadly categorized into dry and immersion types, and the EUV lithography machine is considered the most advanced.
The market for semiconductor lithography equipment was evaluated by analyzing separate market sizes for deep ultraviolet lithography (DUV) (ArFi, ArF dry, KrF, i-line) and extreme ultraviolet lithography (EUV) for different applications, including advanced packaging, MEMS devices, and LED devices in multiple geographies, including North America, Europe, Asia-Pacific, and the Rest of the World. The study also examines the impact of macroeconomic trends on the market and impacted segments. The study also discusses the drivers and restraints likely to influence the market's evolution in the near future. The market sizes and forecasts are provided in terms of USD value for all the above segments.
| Deep Ultraviolet (DUV) |
| Extreme Ultraviolet (EUV) |
| High-NA EUV |
| Advanced Packaging |
| MEMS Devices |
| LED Devices |
| Power and Compound Semiconductors |
| Pure-play Foundries |
| Integrated Device Manufacturers (IDMs) |
| Outsourced Semiconductor Assembly and Test (OSAT) |
| North America | United States | |
| Canada | ||
| Mexico | ||
| South America | Brazil | |
| Argentina | ||
| Rest of South America | ||
| Europe | Germany | |
| United Kingdom | ||
| France | ||
| Italy | ||
| Spain | ||
| Russia | ||
| Rest of Europe | ||
| Asia Pacific | China | |
| Japan | ||
| India | ||
| South Korea | ||
| South East Asia | ||
| Rest of Asia Pacific | ||
| Middle East and Africa | Middle East | Saudi Arabia |
| United Arab Emirates | ||
| Turkey | ||
| Rest of Middle East | ||
| Africa | South Africa | |
| Nigeria | ||
| Rest of Africa | ||
| By Lithography Type | Deep Ultraviolet (DUV) | ||
| Extreme Ultraviolet (EUV) | |||
| High-NA EUV | |||
| By Application | Advanced Packaging | ||
| MEMS Devices | |||
| LED Devices | |||
| Power and Compound Semiconductors | |||
| By End-User | Pure-play Foundries | ||
| Integrated Device Manufacturers (IDMs) | |||
| Outsourced Semiconductor Assembly and Test (OSAT) | |||
| By Geography | North America | United States | |
| Canada | |||
| Mexico | |||
| South America | Brazil | ||
| Argentina | |||
| Rest of South America | |||
| Europe | Germany | ||
| United Kingdom | |||
| France | |||
| Italy | |||
| Spain | |||
| Russia | |||
| Rest of Europe | |||
| Asia Pacific | China | ||
| Japan | |||
| India | |||
| South Korea | |||
| South East Asia | |||
| Rest of Asia Pacific | |||
| Middle East and Africa | Middle East | Saudi Arabia | |
| United Arab Emirates | |||
| Turkey | |||
| Rest of Middle East | |||
| Africa | South Africa | ||
| Nigeria | |||
| Rest of Africa | |||
Key Questions Answered in the Report
How big is the semiconductor lithography equipment market in 2025?
The value stands at USD 27.8 billion and is projected to reach USD 43.70 billion by 2030 at a 9.47% CAGR.
What is semiconductor lithography equipment used for?
It exposes photo-resist patterns on silicon wafers so transistors and interconnects are etched with nanometer-level accuracy.
Which region leads demand for semiconductor lithography tools?
Asia-Pacific holds 68.30% of 2024 revenue, driven by Taiwan's foundries and South Korea's mega-cluster buildout.
What is the main barrier to adopting EUV systems?
The upfront price is around USD 380 million per scanner, plus facility upgrades that double total ownership cost.
How fast is the Middle East and Africa segment growing?
It records a 12.69% CAGR through 2030, helped by Saudi Arabia's National Semiconductor Hub and UAE AI datacenter projects.
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