Photolithography Market

Photolithography Market Outlook (2023 to 2033)

The global photolithography market is valued at US$ 9.05 billion in 2023 and is forecasted to reach US$ 14 billion by 2033, expanding at a CAGR of 4.3% over the next ten years.

Photolithography is the method of casting geometric patterns using optical radiations onto a substrate. In some contexts, it is referred to as optical lithography or ultraviolet lithography. Some critical steps in photolithography include wafer dusting, developing wall layers, aligning photoresists, and performing hard baking.

Effective use of the complex technique of photolithography requires an extremely clean surface for the etched patterns and precise temperature settings. This technology is used in the production of various applications, including integrated circuits, plates, printed circuit boards, and printing plates.

In recent years, photolithography has been utilized to create nanoparticles and miniature structures. Growing demand for photolithography equipment has been aided by the steady growth of the consumer electronics sector. Manufacturers' tendency to promote the use of smart devices has also given rise to numerous opportunities in the industry that are anticipated to fuel sales of photolithography equipment globally.

High demand for small-sized electronics, increased use of the Internet of Things, and the growth of the semiconductor industry have contributed to high sales of photolithography equipment. Advancements in photolithography methods are also expected to create profitable opportunities for market players around the world.

• Nikon's announcement of the FX-6AS in October 2021, a new photolithography technology capable of producing OLED and LCD panels for the latest electronic devices such as smartphones, laptops, and other gadgets, is a recent technological advancement that is anticipated to contribute to high demand for photolithography equipment.

Report Attributes	Details
Photolithography Market Size in 2022	US$ 8.68 Billion
Estimated Market Value (2023)	US$ 9.05 Billion
Forecasted Market Value (2033)	US$ 14 Billion
Global Market Growth Rate (2023 to 2033)	4.3% CAGR
North America Market Growth Rate (2023 to 2023)	8.3% CAGR
Companies Profiled	Samsung Electronics Carl Zeiss AG ASML Holdings NV Rudolph Technologies NIL TECHNOLOGY EV Group (EVG) JEOL Ltd Applied Materials

Why are We Seeing Rapidly Rising Demand for Photolithography Equipment in the Electronics Industry?

“Increasing Government Funding for Electronics Manufacturing”

Growth of the electronics industry and the introduction of high-end electronic products by multinational corporations are contributing to the high demand for photolithography equipment. Experts in the field predict that the demand for photolithography in the manufacturing of printed chips and integrated circuits, along with the escalating global photonic packaging sector, will fuel the growth of the photolithography market in the foreseeable future.

The numerous advantages of photolithography technology, such as its high resolution, exceptional bonding capabilities, sensitive light, and ability to encapsulate cells in hydrogels in 3D, have contributed significantly to this market expansion.

The introduction of cutting-edge manufacturing techniques for semiconductor devices and increased government funding for research & development are anticipated to open up several opportunities and fuel the expansion of the photolithography market from 2023 to 2033.

“Rising Investments in Advanced Wafer Fabrication Technology”

The photolithography industry is anticipated to grow in the coming years as a result of the increased investments in wafer fabrication supplies and machinery.

Due to the global chip scarcity, the semiconductor sector is presently concentrating on boosting its production capacity. The development of novel fabrication methods and the enlargement of existing facilities are priorities for the industry's major players. Increasing investments in advanced equipment and the adoption of fabrication technologies are fueling the global market for photolithography equipment.

• For instance, TSMC, a leading pure-play foundry in Taiwan, has allocated 80% of its capital to expand its capacity for sophisticated chip production, including deeper UV lithography.

What are the Major Hindrances to the Wide Adoption of Photolithography?

“High Operational and Maintenance Costs of Photolithography Devices”

Although demand for photolithography devices is expected to grow, there are several significant obstacles hindering its expansion. These include functional flaws in photolithography devices, unreliable exposure instruments, and the complexity of the manufacturing process.

The high operational and maintenance costs of the expensive equipment required for photolithography, as well as limitations in its ability to process bent surfaces, are also constraints to its growth.

Country-wise Insights

What Makes China and India Lucrative Markets for Manufacturers of Photolithography Equipment?

“Low Manufacturing and Labor Costs Boosting Production of Photolithography Equipment”

Throughout the projection period, sales of photolithography equipment in China are anticipated to increase significantly due to rising investments in the expansion of electronics manufacturing facilities. The country has a large number of well-known semiconductor factories, which is contributing to the growing demand for photolithography equipment. The demand for semiconductor products is supported by the existence of prominent enterprises in the country's consumer electronics and mobile device industries.

The market in India is expected to hold a substantial share of the market due to the availability of several high-voltage power stations, rising demand for power modules, and low manufacturing and labor costs in the country.

• As per the Department of Electronics and Information Technology (DEITY), around 2,000 chips are designed each year in India, and more than 20,000 engineers are working on various facets of chip design and verification.
• In July 2020, Taiwan Semiconductor Manufacturing Co. (TSMC) announced a 50% discount on all semiconductor photolithography machines installed and operating globally. This move by TSMC, along with the strong presence of other major companies, is expected to have a positive impact on the outlook for the sales of semiconductor photolithography equipment.

Why Does the United States Account for High Sales of Photolithography?

“Increasing Adoption of AI and IoT Fueling Demand for Photolithography Equipment”

The use of advanced technologies in semiconductor manufacturing, such as AI and IoT, is expected to speed up the adoption of semiconductor lithography equipment in the United States. Companies dealing in semiconductor manufacturing equipment are expected to experience favorable growth prospects due to various factors. These include the growth of chip businesses in emerging countries, an increase in the number of data centers and servers, and the proliferation of IoT devices.

This growth is due to the rapid acceptance of power devices and apps as well as a sharp increase in the number of electronic applications, such as IoT devices. This is a result of the presence of significant key players in the photolithography market.

Category-wise Insights

How Does EUV Lithography Help Manufacturers Reduce Operational Costs?

“Increasing Adoption of EUV Lithography Employing Single-step Wafer Fabrication Technique Reducing Electronics Manufacturing Costs”

During the forecast period, extreme ultraviolet (EUV) lithography is expected to occupy a leading share of the market. Advancements in semiconductor lithography equipment, such as the development of large lenses with high numerical apertures and the use of light as the source of light for specific wavelengths, are just a few examples of the numerous improvements made over time.

As the semiconductor industry expands, adoption of intense ultraviolet (UV) lithography methods for the manufacturing of electronic components is anticipated to increase. To build semiconductor devices, manufacturing companies should expose individual wafers to UV light for each layer of the device to be created. Because EUV photolithography exposes the critical step in a single layer and lowers the cost of production, the technique proves to be cost-effective for manufacturers.

The EUV method uses a plasma lighting source created by a laser, which lowers maintenance and operational costs. The industry is making progress as manufacturers focus on the extreme ultraviolet photolithography process.

What is the Impact of Increased Investments in Wireless Technologies on the Demand for Photolithography Equipment?

“Growing Demand for High-performance and Multifunctional ICs Necessitating Wide Adoption of Photolithography”

Growth of the photolithography market is driven by the increasing demand for this technology in the production of semiconductor ICs for various applications such as consumer electronics, communication devices, sensor devices, and memory devices. This demand is fueled by the growing integration of photolithography in the global integrated circuit industry.

The capabilities of augmented reality (AR), diminished reality (DR), virtual reality (VR), and live video streaming technologies have become more accessible to smartphone makers due to increasing investments in wireless technologies such as 5G. As a result, high-performance, multifunctional ICs are being created. The need for photolithography equipment to manufacture these high-density integrated circuits is increasing along with transistor density in ICs.

Competitive Landscape

Manufacturers are focusing on expanding their fabricating and etching capabilities to remain competitive in the industry. To achieve this, they are dedicated to producing photolithography devices that meet the needs of every industrial sector. They attract a broad range of clients and strengthen their local presence, gaining a competitive advantage in the global photolithography market. In addition, these companies employ inorganic growth techniques as part of their market expansion strategy.

Key manufacturers are introducing precise and dependable photolithography techniques, such as accurate light beam procedures and advanced instruction sets. These companies are using strategies such as mergers and collaborations to expand their market share in addition to organic techniques like introducing new products.

• In August 2019, SCHOTT and EV Group collaborated to showcase the readiness of 12-inch nanoimprint lithography for high-volume patterning of high-refractive-index glass wafers, which are used in manufacturing waveguides and light guides for augmented and mixed reality headsets.
• In July 2020, Canon Inc. launched its first semiconductor lithography equipment called FPA-8000iW, which enables the production of semiconductor devices using large panels commonly used in back-end processing.
• In January 2022, ASML and Intel Corporation announced the extension of their partnership to advance semiconductor photolithography technology, which is expected to contribute to the growth of the market.

Key Segments of Photolithography Industry

• By Process :

  • Extreme Ultraviolet (EUV)
  • Deep Ultraviolet (DUV)
  • I-Line
  • Krypton Fluoride (KrF)
  • Argon Fluoride Dry (ArF Dry)
  • Others

• By Application :

  • IC Patterning Process
  • Printed Circuit Board Fabrication
  • Microprocessor Fabrication
  • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East & Africa