CNBC AI News – August 5 – Canon (7751.T) is set to officially commence operations at its newly expanded lithography equipment factory in Utsunomiya, Japan, this September, according to media reports.
This marks the first expansion of the facility in 21 years, since its initial establishment in 2004. The move is aimed at ramping up production of lithography systems as Canon seeks to capitalize on the burgeoning artificial intelligence (AI) industry and challenge the dominance of Dutch giant ASML (ASML.AS) in the semiconductor manufacturing equipment market.
In response to surging global demand for semiconductors fueled by the AI boom, Canon invested 50 billion yen (approximately $345 million USD) in the new facility, spanning over 67,000 square meters.
The core innovation lies in a dual-track technological approach: continuing production of traditional UV lithography equipment while simultaneously introducing a pioneering nanoimprint lithography (NIL) system. This groundbreaking technology directly imprints circuit patterns onto wafers, streamlining the manufacturing process.
NIL offers significant advantages in production cost and energy consumption compared to conventional lithography, providing Canon with a crucial technological foothold to challenge ASML’s market leadership. Industry analysts suggest NIL’s simplified approach could disrupt certain segments, particularly those less reliant on the extreme precision of EUV.
Projected production figures indicate the new facility will reach full capacity by 2027. Combined with existing facilities in Utsunomiya and Abiko, Canon’s total annual lithography equipment output is projected to exceed 300 units – a nearly 30% increase from the 233 units shipped in 2024.
While Canon currently holds the second-largest global market share at 30%, it still faces a generational gap with ASML in the crucial extreme ultraviolet (EUV) lithography sector, which is paramount for manufacturing the most advanced microchips.
The World Semiconductor Trade Statistics (WSTS) forecasts the global semiconductor market will reach $760.7 billion by 2026, with an annual growth rate of 8.5%. Some organizations predict the market will surpass the $1 trillion mark by 2030. While ASML reaps the benefits of EUV technology in high-end chip manufacturing, Canon is betting on a differentiated strategy with nanoimprint technology, aiming to carve out a new battlefield in the rapidly expanding AI infrastructure race. The move highlights the ongoing technological tug-of-war shaping the future of semiconductor manufacturing.
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