Extreme ultraviolet lithography (EUVL) Equipment– Market Forces 1 | Page 3

Extreme Ultraviolet Lithography ( EUVL ) is a next generation lithography technology used in the manufacture of integrated circuits . The primary manufacturer of EUVL is ASML . The company believes there will be a surge in the number of projects in the 5 nm node region which will need a much higher numerical aperture than what is currently present in the market . Further to this , there will also be multiple patterning required which will be addressed by EUVL .
In terms of geographic contribution , the APAC region accounted for the highest share of EUVL systems and will continue to be the dominant market till well beyond the forecast period . Almost all of the semiconductor foundries and IDMs are located in the region and as such , lithography manufacturers and customers are present in this region .
The market is dominated by a few key vendors who account for more than 60 percent of the market , with the remaining being occupied by much smaller players . The market conditions in terms of the level of investment required for lithography systems and technical expertise in the field ensure that the barrier for entry for new players is high . As such , only the current vendors will be able to survive and expand in the market with very less chance for a new vendor to enter .