Has the new semiconductor manufacturing equipment capable of rivaling ASML’s EUV lithography machines been shipped? Canon has announced that it will deliver its latest lithography platform, the FPA-1200NZ2C nanoimprint lithography (NIL) system for semiconductor manufacturing, to the Texas Institute for Electronics (TIE), a semiconductor consortium based in Texas, according to its press release.

It is worth noting that in October, 2023, the Japanese tech giant became the first company in the world to commercialize a semiconductor manufacturing system utilizing NIL technology, which creates circuit patterns using a different approach than traditional projection exposure technology, the press release notes. Now it has officially sealed the deal with a new client.

Canon states that with reduced power consumption and cost, NIL lithography equipment enables patterning with a minimum linewidth of 14 nm, equivalent to the 5 nm node that is required to produce most advanced logic semiconductors currently available. In addition to producing 5 nm logic chips, with further improvements, it is expected to be capable of manufacturing 2 nm products as well.

Citing an interview with Kazunori Iwamoto, Deputy General Manager of Canon’s Optical Equipment Division by Nikkei, a report by MoneyDJ notes that Canon aims to sell “a dozen units each year within 3 to 5 years”.

According to Canon’s explanation, in contrast to conventional photolithography equipment, which transfers a circuit pattern by projecting it onto the resist coated wafer, the new product does it by pressing a mask imprinted with the circuit pattern into the resist on the wafer like a stamp.

Because its circuit pattern transfer process does not go through an optical mechanism, fine circuit patterns on the mask can be faithfully reproduced on the wafer.

According to MoneyDJ, Canon has been collaborating with Japan’s major mask manufacturers, Dai Nippon Printing (DNP) and Kioxia, which was still Toshiba’s subsidiary at that time, to develop NIL technology for the past decade.

Citing Canon CEO Fujio Mitarai’s previous remarks with the Japan Times in 2023, MoneyDJ notes that Canon’s NIL technology provides small semiconductor manufacturers with the opportunity to produce advanced chips that are currently dominated by large corporations, with the price probably be “one digit less” than ASML’s extreme ultraviolet (EUV) lithography systems.

According to Mitarai, the power consumption of NIL equipment is only one-tenth that of EUV machines. While NIL may be difficult to replace EUV, he believes it will create new opportunities and demand, and many customers have already expressed interest.

Read more

• [News] Canon’s Nano-imprint Lithography Reduces Production Costs for Advanced Processes, Narrowing the Gap with ASML

(Photo credit: Canon)

According to TrendForce’s compilation and analysis of various industry data and the recent financial reports of major representative companies, it appears that China’s local equipment industry can cover the various stages required in semiconductor manufacturing processes (excluding lithography machines).

Overall, locally produced equipment in China shows relatively high localization rates in processes such as photoresist stripping, cleaning, and etching. In recent years, there has been significant progress in processes like CMP, thermal processing, and deposition. However, in equipment related to measurement, coating and developing, lithography, and ion implantation, the Chinese equipment manufacturers still face challenges.

As per SEMI data, the semiconductor equipment market, including wafer processing, fab facilities, and mask/reticle equipment, is projected to decline by 3.7% to USD 90.6 billion in 2023. Looking ahead, semiconductor manufacturing equipment is expected to rebound in 2024, driven by both front-end and back-end market demands. Sales are forecasted to reach a new high of USD 124 billion in 2025.

The growth in the equipment market is closely tied to the extensive expansion of foundries. It is reported that approximately 70%-80% of the capital expenditure for fab expansion is allocated to the purchase of semiconductor equipment.

According to statistics from TrendForce, China currently operates 44 fabs (25 of which are 12-inch fabs, 4 are 6-inch fabs, and 15 are 8-inch fabs/lines).

Additionally, there are 22 fabs under construction (15 of which are 12-inch fabs, and 8 are 8-inch fabs). Furthermore, companies including SMIC, Nexchip, and Silan Micro are planning to construct 10 additional fabs (9 of which are 12-inch fabs, and 1 is an 8-inch fab). Overall, China is expected to establish 32 large-scale fabs focused entirely on mature processes by the end of 2024.

Per TrendForce’s data, from 2023 to 2027, the global mature process (28nm and above) and advanced process (16nm and below) capacities are expected to maintain a ratio of approximately 7:3.

Due to policies promoting localization and subsidies, China has shown the most proactive expansion progress. It is estimated that the proportion of mature process capacity in China will increase from 29% in this year to 33% by 2027, with SMIC, Hua Hong Group, and Nexchip being the most active in expanding production.

Despite rapid development in China’s equipment industry in recent years, Chinese semiconductor manufacturers still have room to catch up compared to international giants like Applied Materials, Tokyo Electron, Lam Research, ASML, and KLA Corporation, which boast billion-dollar scales and diverse high-end product lines.

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Canon, one of the world’s major manufacturers of lithography equipment, announced the release of the FPA-1200NZ2C Nano-imprint Lithography (NIL) semiconductor equipment in October.

The CEO, Fujio Mitarai, recently stated that the new nano-imprint lithography technology opens up a new path for small semiconductor manufacturers to produce advanced chips.

Canon’s Semiconductor Equipment Business Manager, Kazunori Iwamoto, explained that nano-imprint lithography involves imprinting a mask with the semiconductor circuit pattern onto a wafer. With a single imprint, complex 2D or 3D circuit patterns can be formed in the appropriate locations. By improving the mask, it might even be possible to produce 2nm chips.

Reportedly, Canon’s nano-imprint lithography is capable of producing a minimum 5nm process size. In the 5nm process segment of the advanced semiconductor manufacturing equipment market, currently dominated by ASML’s EUV exposure machines, Canon’s nano-imprint lithography might have the opportunity to narrow the gap.

Regarding equipment costs, Kazunori Iwamoto stated that customer costs vary, and the estimated cost of a single imprint process can sometimes be reduced to half that of traditional exposure equipment processes. Nano-imprint lithography equipment also has a smaller footprint, making it easier to introduce.

Previously, Fujio Mitarai mentioned that the pricing of nano-imprint lithography equipment is one digit less than that of ASML’s EUV equipment. However, the final pricing has not been disclosed yet.

According to NIKKEI’s interview, Iwamoto also indicated that Canon has received numerous inquiries from semiconductor manufacturers, universities, and research institutes. There is anticipation that it could serve as an alternative to EUV, with expectations for the production of various semiconductors, including flash, DRAM for personal computer, and logic ICs.

Read more

• [News] The Battle on Advanced Processes Intensifies as ASML Plans to Produce Ten Equipment Capable of 2nm Chip Production Next Year
• [News] EUV as a Strategic Asset in the Most Advanced Processes: Progress in Intel/TSMC/Samsung’s Adoptions

(Photo credit: Canon)