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Lithography Equipment Market Size, Share, Growth & Industry Analysis, By Type (EUV, DUV), By Technology (ArF Scanners, KrF Steppers, I-line Steppers, ArF Immersion, Others), By Applications (Advanced Packaging, LED, MEMs, Power Devices), By Packaging Platforms, and Regional Analysis, 2024-2031
Pages: 200 | Base Year: 2023 | Release: April 2025 | Author: Versha V.
The market encompasses machinery and technologies used in semiconductor fabrication, enabling precise patterning of microcircuits on silicon wafers.
It includes photolithography, extreme ultraviolet (EUV), deep ultraviolet (DUV), and nanoimprint lithography systems. The report outlines the major factors driving the market, along with key drivers and the competitive landscape shaping the growth trajectory over the forecast period.
The global lithography equipment market size was valued at USD 26.45 billion in 2023 and is projected to grow from USD 36.71 billion in 2024 to USD 398.8 billion by 2031, exhibiting a CAGR of 40.60% during the forecast period.
This market is expanding rapidly, driven by the increasing need for advanced semiconductor chips across industries like consumer electronics, AI, automotive, and telecommunications.
The rollout of 5G networks fuels the need for high-speed, low-latency chips, while AI and high-performance computing need smaller, more powerful semiconductors, boosting the adoption of EUV lithography. The rising popularity of Electric Vehicles (EVs) and autonomous driving technologies is generating the need for advanced semiconductor components, necessitating cutting-edge lithography processes.
Major companies operating in the lithography equipment industry are ASML, Nikon Corporation, Canon Inc., Applied Materials, Inc., LAM RESEARCH CORPORATION, SUSS MicroTec SE, EV Group, JEOL Group, KLA Corporation, Veeco Instruments Inc., RAITH GmbH, Mycronic, SCREEN Semiconductor Solutions Co., Ltd., Neutronix Quintel, and Onto Innovation.
The shift toward advanced packaging techniques, such as chiplet architecture and 3D stacking, requires more precise lithography solutions to improve performance and efficiency.
The increasing focus on energy-efficient and high-performance computing solutions in data centers also contributes to market growth, as companies seek lithography technologies that enable higher transistor density with lower power consumption. These factors drive innovation and investment in next-generation lithography equipment, ensuring sustained market expansion.
Market Driver
High-NA EUV Advancements and Growing Semiconductor Demand
The market is driven by continuous advancements in High-Numerical Aperture (NA) EUV lithography and the increasing demand for miniaturization and power-efficient semiconductor devices.
High-NA EUV lithography is a major breakthrough, allowing chipmakers to achieve higher precision and transistor density by enabling finer patterning and reducing feature sizes. This enhances chip performance, which is essential for applications requiring high computational efficiency, such as Artificial Intelligence (AI) and high-performance computing.
Additionally, industries are developing more compact and powerful electronics, pushing the need for miniaturization and energy efficiency in semiconductor devices. Consumer electronics, IoT devices, and AI-driven applications demand smaller chips with superior performance, compelling semiconductor manufacturers to adopt cutting-edge lithography solutions for sub-2nm process nodes.
Market Challenge
High Costs and Complexity
A major challenge in the lithography equipment market is the high cost and complexity associated with advanced lithography technologies, particularly high-NA EUV systems. The development and deployment of these cutting-edge tools require billions of dollars in investment, due to their intricate optics, precision engineering, and extreme manufacturing conditions.
Additionally, the operational costs of maintaining and calibrating these systems add to the financial burden on semiconductor manufacturers. This makes it difficult for smaller foundries and emerging players to compete, limiting access to next-generation chip fabrication.
Semiconductor manufacturers and equipment suppliers are increasingly adopting cost-sharing models, industry collaborations, and government-backed initiatives to distribute the financial burden. Companies are also focusing on optimizing process efficiency, extending the lifespan of existing lithography tools, and integrating AI-driven automation to enhance productivity while reducing costs.
Market Trend
Maskless Lithography and Panel-level Packaging
The market is evolving with the emergence of maskless lithography and the growing adoption of Panel-level Packaging (PLP) in semiconductor manufacturing.
Maskless lithography eliminates the need for physical photomasks by using digital projection techniques or direct-write methods, significantly reducing production time and mask-related costs while enhancing design flexibility. This enables rapid prototyping and customization, making it ideal for next-generation chip architectures.
Simultaneously, panel-level packaging is optimizing semiconductor fabrication by increasing efficiency and yield. Unlike traditional wafer-level packaging, which is limited by circular wafer sizes, PLP uses larger, rectangular substrates, allowing multiple chips to be processed simultaneously with improved material utilization.
This approach reduces waste, lowers costs, and enhances the electrical performance of semiconductor devices, meeting the growing need for high-performance and cost-efficient chips in AI, IoT, and high-speed computing applications.
Segmentation |
Details |
By Type |
EUV, DUV |
By Technology |
ArF Scanners, KrF Steppers, I-line Steppers, ArF Immersion, Mask Aligners, Others |
By Applications |
Advanced Packaging, LED, MEMs, Power Devices |
By Packaging Platforms |
3D IC, 2.5D Interposer, Wafer Level Chip Scale Packaging (WLCSP), FO WLP Wafer, 3D WLP, Others |
By Region |
North America: U.S., Canada, Mexico |
Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe |
|
Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific |
|
Middle East & Africa: Turkey, UAE, Saudi Arabia, South Africa, Rest of Middle East & Africa |
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South America: Brazil, Argentina, Rest of South America |
Market Segmentation
Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.
Asia Pacific accounted for 36.42% share of the lithography equipment market in 2023, with a valuation of USD 15.80 billion. The market in the region is driven by the dominance of semiconductor manufacturing hubs such as Taiwan, South Korea, China, and Japan.
Taiwan Semiconductor Manufacturing Company (TSMC) and South Korea's Samsung Electronics lead in advanced node production, heavily investing in EUV and DUV lithography equipment to maintain technological leadership. The presence of key semiconductor foundries, coupled with continuous technological advancements in fabrication processes, has fueled regional growth.
Additionally, China's increasing investments in domestic semiconductor firms and Japan’s strong position in photolithography materials, such as photoresists and mask blanks, contribute to the region's leadership in the market.
The lithography equipment industry in North America is expected to register the fastest growth in the market, with a projected CAGR of 40.51% over the forecast period. This expansion is driven by significant investments from leading semiconductor manufacturers such as Intel, GlobalFoundries, and Texas Instruments in advanced chip production.
The region benefits from a well-established ecosystem of semiconductor research institutions and technology collaborations, fostering continuous innovation in lithography processes. The increasing focus on AI, quantum computing, and high-performance computing is accelerating the need for next-generation chips, requiring more sophisticated lithography solutions.
Additionally, North America's strong expertise in developing advanced chip architectures, including chiplet-based designs and heterogeneous integration, is further boosting the need for high-precision lithography equipment.
North America is poised to emerge as a critical hub for lithography technology advancements, due to the growing emphasis on self-reliant semiconductor supply chains and the expansion of cutting-edge fabrication facilities.
The lithography equipment market is characterized by key players focusing on technological innovation, strategic partnerships, and capacity expansion to maintain market leadership.
Companies are heavily investing in research and development to enhance resolution capabilities, improve throughput, and enable cost-effective chip manufacturing at smaller nodes. The adoption of EUV lithography is a primary focus, with firms working on refining EUV source power and pellicle technology to improve efficiency.
Major lithography equipment manufacturers are forming alliances with semiconductor foundries and integrated device manufacturers (IDMs) to co-develop next-generation fabrication techniques. Some players are expanding their production facilities and optimizing supply chains to meet the rising global need for advanced semiconductor manufacturing tools.
Additionally, firms are focusing on extending the lifespan and efficiency of existing lithography systems by developing advanced upgrade kits and modular enhancements, allowing semiconductor manufacturers to optimize performance without investing in entirely new equipment.
The emphasis on enhancing overlay accuracy and reducing patterning variability through novel optical and computational lithography techniques is growing, enabling better yield control in advanced node production.
Recent Developments (Acquisition/Partnerships/Product Launches)
Frequently Asked Questions