Market Trends of EUV Lithography Industry
This section covers the major market trends shaping the EUV Lithography Market according to our research experts:
Foundry is Expected to Hold Major Share
- TSMC is planning to dominate the global foundry market by starting the volume production of 3-nm products in 2022. Samsung Electronics Co, Ltd, the runner-up in the market, is aiming to overtake TSMC in 2030 with its extreme ultraviolet (EUV) lithography technology. TSMC announced in December 2019 that the company would start to supply 5-nm process-based chips in the first half of 2020 and start the mass production of 3-nm process chips in 2022. The company also expects o produce 2-nm process products in 2024.
- Samsung is facing a series of challenges in the market. For instance, the supply of photoresists for EUV lithography purposes can be subject to Japan's export restrictions. Besides, a significant number of companies are trying to compete with Samsung Electronics. Chinese and Taiwanese semiconductor companies are increasingly collaborating. Samsung Electronics has unveiled a series of new microfabrication techniques such as FinFET, gate-all-around, and multi-bridge-channel FET to compete with the increasing competitors.
- In February 2021, Samsung Foundry filed documents with authorities in Arizona, New York, and Texas seeking to build a leading-edge semiconductor manufacturing facility in the United States. The potential fab near Austin, Texas, is expected to cost over USD 17 billion and create 1,800 jobs. If everything goes as planned, the foundry will go online by the fourth quarter of 2023. There is an intrigue about the new fab, though the company did not state which process node it will be designed for.
- Vendors, such as Taiwan Semiconductor Manufacturing Co. (TSMC) and United Microelectronics Corp. (UMC), announced that they have been focusing on relocating their production to meet the demand from automakers, such as Volkswagen and Toyota, among others. In addition, the demand coming from companies, such as Qualcomm and Apple, has been creating delays in the supply of semiconductors. According to a new survey by Automotive News (April 2021), 53% of the respondents suggested that they source their chips from outside the United States, and 55% of the manufacturers have been looking for alternative chip sources outside the country.
- Such factors have been leading to the entry of new companies into the market studied. For instance, recently, Intel announced the launch of a new business Intel Foundry Services, to meet the demand for automotive manufacturers. Similarly, in March 2021, Global Foundries announced that it has been planning to invest USD 1.4 billion for capacity expansion in different parts of the world to support automakers cutting output, such as Ford, Volkswagen, and General Motors.
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Asia Pacific is Expected to Hold Major Share
- The Asia Pacific continues to hold the largest revenue share in the global market for Extreme Ultraviolet (EUV) lithography. Taiwan is expected to have an edge in the region over the forecast period. TSMC's expansion in Taiwan and its increasing investments in the EUV lithography technology is among the most critical factors instrumental in the growth of the Extreme Ultraviolet lithography market in Taiwan. The country accounts for the majority revenue share of the market for EUV lithography in the Asia Pacific region. Apart from Taiwan, the Extreme Ultraviolet lithography markets in Japan, China, and South Korea are expected to create significant opportunities for stakeholders in the coming years.
- Chinese semiconductor makers are also utilizing used chipmaking machines as they rush to produce homegrown products amid US-Sino trade tensions, driving up equipment prices in Japan's secondary market. Japanese used equipment dealers say prices are up by 20% from last year. Older-generation machines are not restricted by the United States sanctions on China, giving Chinese players unfettered access.
- The stay-at-home trend spurred by the coronavirus pandemic is also a factor. As chip demand rises worldwide, even equipment that is not the most up-to-date is selling at a brisk pace. This, in turn, could prolong the shortage of semiconductors used in automobiles.
- ASML's new training complex will likely be beneficial to both companies. While the firm is Europe's largest semiconductor machinery brand, the Taiwanese manufacturer is its biggest customer. Asian Nikkei Review states that 20 of the 35 EUV systems ASML intends to ship this year are going to TSMC. The Dutch concern is setting up future sales by familiarizing more of the chipmaker's staff with its tools. ASML also plans on opening a new research and development facility in Taiwan, which will bring its local headcount over 500 by 2023.
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