Global Lithography Equipment Market Trends: EUV & Multiple Patterning in Focus

 

The global lithography equipment market was valued at US$ 22.1 billion in 2022 and is projected to expand at a CAGR of 7.2% from 2023 to 2031, reaching nearly US$ 41.3 billion by 2031. Rapid adoption of smart devices, 5G rollout, and growing demand for advanced semiconductor integrated circuits (ICs) are fueling the market’s robust growth.

Analyst Viewpoint

The expansion of the lithography equipment market is closely tied to the semiconductor industry boom, particularly in consumer electronics and communication devices. Rising demand for miniaturized ICs capable of performing complex functions is pushing manufacturers to develop more precise and efficient lithography systems. Innovations such as extreme ultraviolet (EUV) lithography and multiple patterning are enabling the fabrication of semiconductor components at nanometer-scale precision, further boosting market growth.

Market Introduction

Lithography equipment plays a critical role in semiconductor fabrication, as it transfers intricate circuit patterns onto silicon wafers. Demand for memory devices, sensors, flat panel displays, and consumer electronics continues to expand, driving adoption of advanced lithography solutions. Excimer laser lithography (ArF and KrF) remains widely used, particularly in the production of compact and large panel displays.

However, certain limitations—such as smaller color gamut, longer turnaround times, and limited variable data printing—pose challenges. Despite these restraints, ongoing technological innovations are expected to outweigh such drawbacks.

Growing Demand for Semiconductor ICs

The proliferation of smart devices and connected technologies is one of the biggest growth drivers. According to GSMA, more than 1.1 billion people will have 5G broadband access by 2025, accounting for 34% of the global population. This massive rollout is expected to fuel demand for semiconductor ICs, thereby boosting lithography equipment adoption.

Lithography accounts for a significant share of semiconductor manufacturing costs—over 50% of fabrication expenses are tied to tools and equipment. Since lithography directly influences yield and defect rates, equipment suppliers play a central role in driving manufacturing efficiency.

Continuous Innovation in Printing Technologies

To meet rising demand for higher circuit densities and smaller feature sizes, companies are investing heavily in EUV and other advanced lithography methods. For instance, in March 2022, Nikon Corporation introduced its Gen 8 plate FPD lithography system, designed for next-generation HD panels used in premium displays.

These advancements cater not only to smartphones and consumer electronics but also to emerging applications such as robots, IoT devices, and autonomous systems, which require miniaturized ICs with high processing power.

Regional Insights

• Asia Pacific (APEJ) dominates the global market, fueled by rapid industrialization, growing electronics demand, and large-scale government support. China alone had more than 160 new semiconductor projects in 2022. India has also launched a US$ 10 billion package to strengthen domestic semiconductor production.
• North America benefits from strong government initiatives such as the CHIPS Act (US$ 280 Bn) and a US$ 50 Bn semiconductor investment package under the Biden administration.
• Europe is advancing with the European Chips Act, aiming to secure 20% global semiconductor market share by 2030 through extensive R&D funding.

Competitive Landscape

Key players in the market include ASML System BV, Nikon Corporation, Canon Inc., EV Group, Ultratech Inc., SUSS MicroTec, Shanghai Micro Electronics Equipment Co., Ltd., and Screen Holdings Co., Ltd. These companies are focusing on precision patterning, overlay accuracy, and high-resolution imaging technologies to gain a competitive edge.

Recent developments highlight the industry’s innovation push:

• Canon (2022) launched the FPA-5520iV LF2 i-line lithography stepper for 3D advanced packaging.
• EV Group (2022) introduced an upgraded EVG 200 automated resist processing system.

Conclusion

With the increasing need for miniaturized, high-performance semiconductors, the lithography equipment market is set for strong growth. Backed by government investments, R&D initiatives, and rising consumer electronics demand, the market will continue to witness significant expansion, reaching US$ 41.3 billion by 2031.