Foundry Remains Top Application Area
EUV lithography is primarily implemented by Integrated Device Manufacturers (IDM), foundries, and in the manufacturing fabless and memory integrated circuits/memory chips, and foundries account for nearly half the revenue share of the global market. In 2019, more than 5 in 10 units of EUV lithography devices sold were employed in foundries, and stakeholders in the market are expected to further enhance the technology to suit end user requirements better.
For instance, in October 2019, Taiwan Semiconductor Manufacturing Company (TSMC) announced that its 7nm plus node has become the industry’s first commercially available EUV lithography technology.
Asia Pacific Leading the Way
EUV lithography market in Asia Pacific accounted for nearly three-fourth revenue share of the global market in 2019, and the region is expected to maintain its lead on the regional platform in the coming years. Growing presence of fabless players at a mounting number of foundries in the region is among the primary driving engines for the EUV lithography market in APAC. Furthermore, a mounting number of IDMs are sprouting up in Asia countries, such as Taiwan, South Korea, and Japan is expected to create lucrative environment in the market.
Market Characterized by Monopoly
ASML Holding N.V., a leading manufacturer of chip making equipment and headquartered in the Netherlands, is also the world’s only manufacturer of EUV lithography systems. More than 25% of the company’s revenues are generated by sales of EUV lithography systems, which reflects the company’s monopoly in manufacturing and commercialization of EUV lithography systems.
Up from 11 EUV lithography systems shipped in 2017, the company sold 18 systems in the year 2018, to semiconductor and foundry businesses from across the world. To expand its expertise in the EUV lithography technology landscape, the company is focused on augmenting R&D investments.
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How Growth will Unfold
Asia Pacific continues to hold the largest revenue share in the global market for EUV lithography, and Taiwan is expected to have the edge in the region, in the coming years. TSMC’s expansion in the country and its increasing investments in the EUV lithography technology are among the most important factors instrumental in the growth of the EUV lithography market in Taiwan.
The country accounts for nearly 40% revenue share of the market for EUV lithography in APA, while Singapore is expected to witness rapid expansion at the highest CAGR through 2019 and 2029. Apart from Taiwan, the EUV lithography markets in Japan and China are also expected to create profitable opportunities for stakeholders in the coming years.
FREQUENTLY ASKED QUESTIONS ABOUT EUV LITHOGRAPHY MARKET
What will be the market value of EUV lithography by the end of 2029?
Demand for EUV lithography is set to grow 7x by 2029, accounting for revenue worth around US$ 22 Bn.
What are the key factors affecting the development of EUV lithography technology?
Elevated wafer production and miniaturization of integrated circuits & microchips to incorporate them into semiconductors are the major factors that are impacting the growth of the EUV lithography market.
How is foundry contributing to the growth of the EUV lithography market?
An increase in the demand for advanced packaging for miniaturized devices and significant technological advancements are leading to increased application of EUV lithography in foundry, thereby significantly contributing to market growth.
What is the major restraint of the EUV lithography market?
One of the major challenges in the EUV lithography market is complexities in bringing the EUV technology from drawing boards to actual foundries. Complexities in manufacturing and subsequent delays in adoption are also emerging as key challenges for market players.
What key strategies are adopted by market players to stay ahead of the pack?
Key players in the EUV lithography market are focusing on R&D activities to further improve EUV technology and strengthening collaboration with technology providers. For instance, ASML Holding N.V invested US$ 1 Bn in the R&D activities in 2019.
How is the emergence of 5G and AI impacting the EUV lithography market growth?
The emergence of LTE and 5G and Artificial Intelligence systems is expected to ramp up the production of suitable microchips and processors using EUV lithography systems. Both technologies will have a high impact on the growth of the target market.
EUV LITHOGRAPHY MARKET TAXONOMY
The global EUV lithography market is segmented into end use and region.
- Integrated Device Manufacturers (IDM)
- Memory, Fabless & Others
- EMEA (Europe, Middle East and Africa)
- Asia Pacific