The global EUV Lithography Market was valued at USD 9.45 billion in 2023 and is anticipated to expand significantly, reaching USD 10.47 billion in 2024 and soaring to USD 23.37 billion by 2031. This growth reflects a robust CAGR of 12.15% throughout the forecast period. The increasing demand for advanced semiconductor technologies across various industries is driving this upward trend in the EUV lithography market.
The global EUV Lithography Market has experienced remarkable growth in recent years, driven by rising demand for high-performance semiconductors in cutting-edge technologies such as artificial intelligence (AI), machine learning (ML), 5G, and autonomous vehicles. According to the latest data from King’s Research, the EUV lithography market is poised to continue its upward trajectory, with significant market growth expected through the forecast period.
Market Growth and Dynamics
The EUV lithography (Extreme Ultraviolet Lithography) market has witnessed rapid growth, bolstered by the increasing miniaturization of semiconductor devices. EUV lithography is a critical technology used to fabricate semiconductors with smaller features, down to 7 nm and below. As technology trends toward higher processing power and energy efficiency, the demand for semiconductors with smaller, more powerful transistors has risen exponentially.
The semiconductor industry has reached a point where traditional photolithography techniques are insufficient for the continued scaling of transistor sizes. This has created a surge in demand for EUV lithography systems, which provide the necessary precision and capability to meet modern semiconductor manufacturing requirements. King's Research estimates that the global EUV lithography market will grow at a compound annual growth rate (CAGR) of over 24% between 2024 and 2030, reaching a market value of USD 20 billion by the end of the forecast period.
One of the major factors driving this growth is the integration of EUV lithography technology in advanced semiconductor nodes, especially in applications such as 5G chips, high-performance computing (HPC), AI processors, and automotive electronics. The increasing demand for consumer electronics and the growing adoption of Internet of Things (IoT) technologies are also contributing to market expansion.
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Market Trends and Innovation
The EUV lithography market is evolving rapidly, with several notable trends shaping its trajectory. One such trend is the shrinking size of semiconductors. As manufacturers strive to produce chips with increasingly smaller transistor sizes, EUV lithography is becoming indispensable for fabricating advanced node semiconductor devices. The 7 nm and 5 nm nodes are already commercially viable, and research and development efforts are ongoing to scale down further to 3 nm and even 2 nm technologies.
The rise of AI and machine learning applications is another key trend influencing the market. AI chips, which require immense computing power, are driving demand for more efficient semiconductor fabrication techniques. EUV lithography, with its ability to create smaller, more powerful transistors, is at the forefront of this trend, enabling manufacturers to develop next-generation processors for AI-driven applications.
Moreover, the growing adoption of electric vehicles (EVs) and autonomous driving technologies has created significant demand for automotive semiconductors, further contributing to the growth of the EUV lithography market. Semiconductor chips used in EVs require high durability, energy efficiency, and processing power, all of which are supported by EUV technology.
Another trend shaping the market is the increasing investment in research and development. Leading semiconductor manufacturers, including TSMC, Samsung, and Intel, are investing heavily in developing EUV lithography solutions to maintain their competitive edge. This has accelerated the commercialization of advanced EUV technology, allowing manufacturers to produce smaller, more efficient chips in high volumes.
Demand and Segmentation Analysis
The demand for EUV lithography technology is driven primarily by the semiconductor manufacturing industry, which uses EUV machines to fabricate chips for various applications. Based on the data from King’s Research, the EUV lithography market can be segmented into the following categories:
- By End-Use Industry:
- Consumer Electronics: The proliferation of smartphones, laptops, and other portable devices is creating sustained demand for semiconductors fabricated using EUV lithography. High-performance chips in modern electronics require advanced manufacturing techniques to enable miniaturization and improved power efficiency.
- Automotive: With the rise of electric vehicles and the development of autonomous driving systems, automotive manufacturers require sophisticated semiconductors for on-board processors, sensors, and other electronic systems. EUV lithography enables the creation of smaller, more powerful chips that are essential for automotive electronics.
- Telecommunication: The deployment of 5G networks globally has heightened demand for semiconductors that can support faster data transmission rates and improved network efficiency. EUV lithography is critical for fabricating the high-performance chips used in 5G infrastructure.
- Healthcare: The healthcare industry is increasingly reliant on advanced semiconductor technologies, especially in medical imaging and healthcare AI applications. EUV lithography facilitates the production of cutting-edge chips used in these devices, supporting the digitization of the healthcare sector.
- By Technology:
- 7nm and Below: The 7nm and below segment dominates the EUV lithography market, as these advanced nodes are in high demand across industries. King’s Research highlights that this segment is expected to maintain its leadership in the market, driven by widespread adoption in AI, 5G, and automotive electronics.
- Others: Though the focus is primarily on advanced nodes, other emerging semiconductor technologies and nodes also benefit from EUV lithography, especially as companies continue research and development to push the boundaries of chip design.
Key Companies in EUV Lithography Market
- ASML
- Nikon Corporation
- Ushio Inc.
- Photronics Inc.
- TRUMPF
- Taiwan Semiconductor Manufacturing Company Limited
- Toppan Photomasks Inc.
- Carl Zeiss AG
- KLA Corporation
- SUSS MicroTec SE
The global EUV Lithography market is segmented as:
By Equipment
- Light Source
- Optics
- Others
By End-User
- Integrated Device Manufacturers
- Foundries
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- France
- U.K.
- Spain
- Germany
- Italy
- Russia
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Rest of Asia-Pacific
- Middle East & Africa
- GCC
- North Africa
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
Regional Analysis of Market Growth
The EUV lithography market has seen growth across several regions, but Asia-Pacific stands out as the dominant market. Countries such as Taiwan, South Korea, and China have emerged as the largest markets for EUV lithography, primarily due to the presence of major semiconductor foundries such as TSMC and Samsung.
- Taiwan: As the home to TSMC, Taiwan is a critical hub for semiconductor manufacturing. TSMC’s investment in EUV technology has made Taiwan the largest consumer of EUV machines. With TSMC leading the global market for contract chip manufacturing, Taiwan is expected to remain a key market for EUV lithography through the forecast period.
- South Korea: South Korea is another significant market, driven by Samsung’s efforts to expand its semiconductor manufacturing capabilities. Samsung’s push to produce 3nm and 2nm chips using EUV technology will make South Korea a critical region for future market growth.
- China: China’s ambition to develop a self-sufficient semiconductor industry has led to increased investment in EUV lithography. However, trade restrictions have limited China’s access to advanced EUV machines, creating challenges for the country’s semiconductor manufacturers.
In addition to Asia-Pacific, North America and Europe are also important regions for the EUV lithography market. The presence of major semiconductor companies such as Intel in the United States and ASML in the Netherlands ensures that both regions play a pivotal role in the market.
Conclusion
The global EUV lithography market is poised for strong growth, driven by increasing demand for advanced semiconductors across various industries. As technology trends toward higher processing power, miniaturization, and energy efficiency, EUV lithography will remain at the forefront of semiconductor manufacturing. The market’s growth is further supported by investments from leading semiconductor manufacturers such as TSMC, Samsung, and Intel, who are using EUV technology to produce next-generation chips for AI, 5G, automotive, and other applications.
As detailed by King’s Research, the EUV lithography market is on track for rapid expansion, with opportunities for growth in key regions such as Asia-Pacific, North America, and Europe. With ongoing technological advancements and increasing demand for smaller, more powerful semiconductors, the future of EUV lithography is brighter than ever.
