Global Next-Generation Lithography Materials Market 2021
The global market for next-generation lithography materials is projected to reach $1,005 million by 2031, growing at a compound annual growth rate (CAGR) of 29.46% during the forecast period of 2022-2031. This growth is driven by the increasing demand for advanced microchips and semiconductors in smartphones and wearable technology.
Smartphone shipments have seen a 7.7% increase in 2021 compared to the previous year, according to the International Data Corporation. Smartphone manufacturers are continuously incorporating new technologies to make their devices lighter and more feature-rich, creating a demand for next-generation lithography materials and technologies.
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USD 1005.3 Mn incremental growth between 2021 and 2026
Application, Material, Region
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Moreover, advancements in technology and increased investment in nanotechnology and nanodevices have fueled the demand for nanolithography, which requires materials that can create structures on the nanometer scale. The U.S. government, through initiatives like the National Nanotechnology Initiative (NNI), has been investing in nanotechnology research, development, and commercialization, further supporting the demand for next-generation lithography materials.
Lithography is a process used to transfer patterns from a photomask to a substrate. Over time, the wavelength of light sources used in lithography has decreased to reduce the critical dimension of features. Next-generation lithography techniques, such as EUV lithography, X-Ray lithography, electron beam lithography, and nano-imprint lithography, utilize wavelengths below 193 nm. These techniques require materials like photoresist, developer, antireflective coatings, and removers.
The demand for next-generation lithography techniques is driven by transitions like the miniaturization of node and wafer sizes. Additionally, the growing demand for cutting-edge microchips and semiconductors in smartphones and wearable technology, as well as the increasing number of smartphone users and smart homes, further contribute to the demand for next-generation lithography materials.
However, the high cost of next-generation lithography scanners and materials poses a significant barrier to widespread adoption. Currently, Advanced Semiconductor Materials Lithography (ASML) is the leading provider of EUV lithography machinery, but with more players entering the market, the industry is expected to expand.
With the global emphasis on digital technologies like 5G networks, artificial intelligence, and IoT, the trend towards device miniaturization and enhanced features presents substantial sales and financing opportunities. This shift has been particularly evident in regions like North America, Europe, and some Asian countries.
The COVID-19 pandemic caused disruptions in manufacturing and supply networks in 2020. However, the increased demand for semiconductors driven by remote work and distance learning prompted semiconductor fabricators to resume production to meet the growing demand for chips used in consumer electronics. As digitization continues to expand, the demand for semiconductors surpasses global supply capacity, creating a need for expanding production and improving semiconductor features, thus driving the demand for advanced semiconductor materials, including next-generation lithography materials.
The demand drivers for the next-generation lithography materials market include the rising proliferation of feature phones and tablets, as well as increasing R&D activities on next-generation lithography materials. However, the market may face limitations due to challenges such as the high cost of raw materials and a limited number of players offering next-generation lithography machinery.
The market is segmented based on various factors, including application, material, and region.
Segmentation by Application
IT & Telecommunications
Segmentation by Material
Segmentation by Region
North America – U.S., Canada, and Mexico
Europe – Germany, France, Sweden, Spain, and Rest-of-Europe
Asia-Pacific and Japan – Japan, South Korea, Taiwan, India and Rest-of-Asia-Pacific
The consumer electronics sector emerged as the dominant segment in the next-generation lithography materials market in terms of both value and volume in 2021. This dominance is expected to continue until 2031. The projected growth can be attributed to the increasing adoption of high-performance mobile devices, including 5G smartphones, and the rising demand for advanced semiconductors and chips fueled by cutting-edge technologies like artificial intelligence and high-performance computing. In January 2022, China saw a significant increase in shipments of 5G-compatible smartphones, further emphasizing the importance of 5G deployment and its impact on the demand for next-generation lithography materials.
The consumer electronics sector is one of the largest and rapidly expanding industries globally, driven by changing lifestyles, particularly in developing countries. The use of smart technologies and the rapid development of next-generation mobile communication standards like LTE and 5G are contributing to the growing demand for advanced semiconductors and, subsequently, next-generation lithography materials.
The global next-generation lithography materials market is segmented based on materials into photoresist and ancillary materials. Among these, extreme ultraviolet lithography (EUV) photoresist dominated the market in 2021 and is expected to maintain its dominance until 2031. EUV lithography is an advanced method that utilizes light with short wavelengths (13.5 nanometers) to print intricate patterns on integrated circuits. The use of laser-produced plasma illumination sources in EUV lithography reduces maintenance and operating costs, making it an attractive option for manufacturers. As a result, the focus is shifting towards EUV lithography, driving the growth of the next-generation lithography materials market.
The Asia Pacific and Japan region led the next-generation lithography materials market in 2021, and this leadership is expected to continue throughout the forecast period (2022-2031). The presence of major semiconductor players like TSMC and Samsung, along with government investments and incentives in countries like Taiwan and South Korea, contributes to the region’s dominance. For example, the South Korean government announced a significant investment in tax breaks to boost chip manufacturing in the country in May 2021. These trends are expected to further stimulate the growth of the next-generation lithography materials market in the region.
China began its journey towards self-sufficiency in the integrated circuit (IC) industry in 2014 with the release of the National Guidelines for Development and Promotion of the IC Industry by the Chinese State Council. The launch of Made in China 2025 in 2015, a comprehensive strategic plan, aimed to reduce the country’s dependence on foreign technology imports. The trade war between the U.S. and China, starting in 2018, and the blacklisting of Huawei Technologies Co., Ltd., have accelerated China’s push towards self-sufficiency. However, the export restrictions imposed on extreme ultraviolet (EUV) lithography by the U.S. limit the growth of the next-generation lithography materials market in China. To maintain its position in the semiconductor industry, the Chinese government is implementing strategic initiatives and providing financial support. For instance, the National Integrated Circuits Industry Development Investment Fund (Big Fund) was renewed in 2019 with more than $35 billion in state financing. Additionally, China has announced over $25 billion in local government IC funds to support Chinese semiconductor companies. These government efforts to promote domestic production may create growth opportunities for the next-generation lithography materials market.
The selection of the profiled companies is based on inputs received from primary experts and an analysis of their company coverage, product portfolio, and market penetration.
Key companies profiled in this report include Tokyo Ohka Kogyo Co., Ltd (TOK), JSR Corporation, DuPont de Nemours, Inc., Shin-Etsu Chemical Co., Ltd, Fujifilm Corporation., Sumitomo Chemical Co., Ltd., Allresist GmbH, micro resist technology GmbH, Merck KGaA, Dongjin Semichem Co. Ltd., Brewer Science, Inc., SACHEM, INC., Kayaku Advanced Materials, Inc., Avantor Performance Materials Inc., Irresistible Materials Ltd, Weifang Startech Microelectronic Materials Co., Ltd., KemLab Inc., Jiangsu Nanda Photoelectric Materials Co., Ltd, Shenzhen Didao Microelectronics Technology Co., Ltd.
Recent Industry Developments
In August 2022, JSR Corporation entered into an investment agreement with the Lingang Special Area Government to establish a subsidiary in Shanghai, China. This strategic move aims to expand JSR Group’s presence in the Chinese market specifically focused on semiconductor materials. The subsidiary is set to commence operations tentatively in December 2022.
In January 2021, the Industrial Technology Research Institute (ITRI) and DuPont de Nemours, Inc. jointly established a semiconductor materials laboratory in Hsinchu, Taiwan. This collaboration enables DuPont to engage in research, development, and enhancement of semiconductor materials in partnership with ITRI. The laboratory also facilitates expediting pilot testing and commercial viability, supporting DuPont’s customers in their pursuit of next-generation semiconductors within Taiwan.
In October 2020, Shin-Etsu Chemical Co., Ltd. invested approximately $278 million (¥30 billion) in the expansion of photoresist manufacturing facilities in Japan and Taiwan. This substantial investment demonstrates Shin-Etsu’s commitment to meeting the growing demand for photoresists, which play a critical role in cutting-edge semiconductor manufacturing processes and technological advancements. Shin-Etsu remains dedicated to making further facility investments to keep pace with this increasing demand.
Key Questions Answered
What are the major factors and trends influencing the adoption and consumption of next-generation lithography materials?
What are some key initiatives taken by existing market players to improve their market positioning, and what strategies are new players adopting as they enter the market space?
Which material currently leads the market, and what promising applications exist? How do these materials and applications evolve in the coming years?
What are the latest developments in various countries worldwide regarding the development of next-generation lithography materials, and what are the consumption patterns observed?
How has the global next-generation lithography materials market been impacted by the COVID-19 pandemic?
What are the bottlenecks hindering the adoption of next-generation lithography materials in different regions and countries? Are there any government regulations globally that affect the next-generation lithography materials market?
How has the Russia-Ukraine war influenced the global next-generation lithography materials market?
How is the ongoing semiconductor war between the U.S. and China expected to impact the next-generation lithography materials market?