Market Trends of Semiconductor Lithography Equipment Industry
Deep Ultraviolet Lithography (DUV) to Hold Major Market Share
- Deep UV lithography (DUV) is an optical projection lithography technique where the pattern on the mask is projected to the wafer surface through a 4X or 5X optical system. The wavelengths used for this type of lithography are 248 nm or 193 nm. This lithography is a high-speed lithographic technology ideal for large-area masters of discrete components that are not bigger than 22 mm x 22 mm, the typical wafer-level exposure field size of a DUV tool.
- The DUV lithography type is one of the leading lithography technologies of the next generation. The technology is cost-effective and has increased resolving power. The adoption of DUV lithography is driven primarily by the miniaturization trend. Lithography is used for printing complex patterns that characterize integrated circuits (ICs) on semiconductor wafers.
- Using DUV lithography, lightweight electronic chips with lower power demands are easy to achieve. The platform features enhanced power resolution and is cost-effective. These structures together form an IC, which is known as a chip. The semiconductor industry's search for even more efficient microchips means chipmakers have to study more structures onto a chip, making the chip faster and more efficient while also reducing production costs. This is expected to boost the market's growth over the forecast period.
- According to ASML, a transition to EUV may only boost demand for DUV. Chip manufacturers deploy EUV in the early stages of chip fabrication to apply the minor structures: transistors, smallest vias (the contacts that connect the source, gate, and drain to the complex interconnect layers), and possibly the connecting layer.
- The market is witnessing various investments as the companies are seeking a technology that can produce chips down to 7nm nodes. For instance, in Oct 2022, Canon announced the development of a new semiconductor equipment plant in eastern Japan which will produce semiconductor lithography systems and other devices. The facilities are expected to commence operation by the first half of 2025.
- Such developments by the major vendors, along with the initiatives taken by the government to boost their semiconductor production, are expected to drive market growth over the forecast period.
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United States to Witness Significant Share
- The United States boasts robust semiconductor R&D capabilities, significant investments catering to the expansion of semiconductor manufacturing capabilities, and rapid adoption of advanced technologies.
- Further, the United States is witnessing an increasing demand for semiconductors. For instance, in September 2021, according to the world semiconductor trade statistics (WSTS), semiconductor industry sales increased significantly to USD 527 billion in 2021, an upward revision from the 2020 forecast for 2021 due mainly to the strong demand growth in the overall market 2020. In 2022, WSTS forecasted global sales totaled to USD 573 billion.
- Additionally, in April 2022, according to Semiconductor Equipment and Materials International, North America's spending on semiconductor equipment reached USD 7.61 billion in 2021 compared to 2020, which was USD 6.53 billion.
- Also, the semiconductor industry association stated that the US semiconductor industry is a leader in chip design. The United States fabless firms account for roughly 60 percent of all global fabless firm sales, and some of the largest IDMs, which make their arrangement, are also US firms.
- According to the state of the US semiconductors industry, the connected devices that run on semiconductor chips (i.e., the Internet of Things (IoT)) registered USD 22.6 billion in 2019 and are expected to reach USD 75 billion by 2025. Semiconductors are also fundamental to innovations, such as 3D printing, machine learning, and artificial intelligence (AI) that enhance healthcare, reduce building costs, strengthen food supply, and enable advancements in science. The region’s robust semiconductor demand is likely to boost the adoption of semiconductor lithography equipment during the forecast period.
- Additionally, in September 2022, the Biden administration announced that it would invest USD 50 billion in building up the domestic semiconductor industry to counter dependency on China, as the US produces zero and consumes 25 percent of the world's leading-edge chips vital for its national security. President Joe Biden signed a USD 280 billion CHIPS bill in August 2022 to boost domestic high-tech manufacturing, part of his administration's push to boost US competitiveness over China. Such robust investments in the semiconductor sector in the region would offer lucrative opportunities for the growth of the studied market.
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