EUV Lithography Market Expected to Surpass US$ 22.98 Billion by 2029

The global EUV Lithography Market for 2022 to 2029 is set to witness significant growth, with the market projected to increase from US$ 5,879.6 million in 2022 to US$ 22,978.6 million by 2029, according to recent market analysis. This remarkable growth, at a compound annual growth rate (CAGR) of 21.5%, highlights the rapid adoption of EUV lithography technology in advanced semiconductor manufacturing.

Extreme ultraviolet (EUV) lithography is an advanced technology that uses a short wavelength of light (13.5 nanometers) to create intricate microchip patterns with greater precision than previous lithography methods. As the demand for smaller, faster, and more efficient microchips grows, EUV lithography is becoming essential to keep up with Moore’s Law and meet the requirements of modern electronics.

Key Takeaways from Market Study

• The EUV lithography market is projected to grow to US$ 22,978.6 million by 2029.
• The market is expected to expand at a 21.5% CAGR between 2022 and 2029.
• The top 3 markets hold a collective market share of over 60.8% in 2022, reflecting concentrated demand in key regions.
• Growth is primarily driven by the rising demand for advanced semiconductor chips used in consumer electronics, automotive, and telecommunications industries.

Drivers and Opportunities
The increasing need for high-performance and energy-efficient semiconductors in consumer electronics, 5G infrastructure, and automotive technologies is fueling the demand for EUV lithography systems. The ongoing advancements in artificial intelligence (AI), the Internet of Things (IoT), and quantum computing are also creating new opportunities for market growth.

Moreover, the push towards smaller transistor nodes (sub-7 nanometer) by semiconductor manufacturers has made EUV lithography indispensable for chip fabrication. Companies that invest in EUV technology are gaining a competitive edge by producing chips with higher performance and lower power consumption.

Components Insights
The EUV lithography market is primarily segmented into light sources, mirrors, masks, and equipment. Among these, the light source component holds the largest share due to its critical role in generating the extreme ultraviolet light required for the lithography process. Equipment for EUV lithography, such as stepper systems and wafer handling tools, is also expected to experience significant growth as manufacturers ramp up production capacity.

Application Insights
EUV lithography is predominantly used in semiconductor manufacturing, specifically in the production of logic chips, DRAM, and NAND flash memory. The demand for EUV lithography is expected to be the highest in the logic chip segment, driven by the rising need for advanced processors and GPUs in smartphones, PCs, and data centers. Memory chip manufacturers are also increasingly adopting EUV technology to create smaller, denser storage solutions.

Deployment Insights
The market is seeing strong growth in both high-volume semiconductor manufacturing facilities and research institutions. High-volume manufacturing facilities, particularly in regions like Asia-Pacific and North America, are expected to dominate the market due to the presence of large semiconductor manufacturers. Research institutions are also investing in EUV systems to explore future applications and enhance lithographic precision.

Key Companies & Market Share Insights
Leading companies in the EUV lithography market include ASML Holding N.V., Intel Corporation, Samsung Electronics, Taiwan Semiconductor Manufacturing Company (TSMC), and Nikon Corporation. ASML is the dominant player in the market, providing cutting-edge EUV lithography systems to major semiconductor manufacturers worldwide. The company’s continued innovations and strategic partnerships with semiconductor giants such as Intel and TSMC have solidified its position as a market leader.

Recent Developments

• ASML Holding N.V. announced the development of a next-generation EUV lithography system capable of further enhancing transistor density, enabling chip manufacturers to continue shrinking process nodes.
• Intel Corporation revealed plans to expand its semiconductor fabrication plants, with a focus on integrating EUV lithography for its next-generation processors.
• TSMC increased its capital expenditure in 2023 to accelerate the adoption of EUV lithography in the production of advanced 3-nanometer and 2-nanometer chips.

As the demand for more powerful and efficient chips continues to rise, the EUV lithography market is positioned for rapid growth through 2029. Technological advancements and increasing investments in semiconductor manufacturing capacity will play a crucial role in shaping the future of this high-growth market.