On July 30, 2025, Canon announced the official launch of its lithography machine factory located in Utsunomiya, north of Tokyo, Japan. This factory marks Canon's first lithography machine facility in 21 years and is an expansion of its Utsunomiya production center. The new factory represents a total investment of 50 billion yen (approximately $336 million), covering both construction and the purchase of advanced equipment. The facility, which spans an area of 67,518 square meters, is expected to increase Canon's total lithography equipment production capacity by 50% upon its commencement of operations.

The new Canon factory will focus on manufacturing i-line and KrF (Krypton Fluoride) lithography machines. These devices are primarily used for the production of mature node semiconductors and represent well-established technologies. In addition to these, the factory will also produce NIL (Nanoimprint Lithography) equipment, which is considered a next-generation lithography system. NIL technology involves etching nanoscale circuit patterns onto a special "stamp" and then "printing" them onto wafers. This method offers several advantages, including lower costs and reduced energy consumption. Canon's FPA-1200NZ2C NIL equipment has already achieved a minimum linewidth patterning of 14 nanometers, supporting the production of 5-nanometer process logic semiconductors.

Lithography Machine Market Strategy

Currently, the global lithography machine market is largely dominated by ASML, a Dutch company that holds over 90% of the market share. However, Canon still possesses unique strengths in the mature process and advanced packaging lithography machine sectors. Canon's back-end process equipment accounts for about 30% of its total sales, primarily supplying customers such as TSMC for the production of interposers and multi-chip modules. As AI chips continue to drive the growing demand for CoWoS and multi-chip packaging, Canon's technological edge in the packaging lithography machine field is expected to yield ongoing benefits. The new factory's production launch will help Canon solidify its existing advantages in the global lithography machine market and provide more flexible capacity to meet the demands of AI and advanced packaging.

Technological Advantages and Future Outlook

Canon's lithography machine technology boasts several advantages. For example, its newly released "Grade10" upgrade package can achieve high-efficiency production of 300 wafers per hour on a 300-millimeter wafer basis, while also attaining a high overlay accuracy of up to 4 nanometers. In addition, Canon is committed to advancing the development of NIL semiconductor manufacturing equipment and enabling its application in mass production. Canon aims to sell approximately 10 to 20 NIL machines per year within the next three to five years. Moving forward, Canon will continue to expand its portfolio of semiconductor lithography machines and optional features to support wafers of various sizes and materials, as well as next-generation packaging processes.

The launch of Canon's new factory is not only a significant strategic move in the lithography machine field but also brings new vitality to the global lithography machine market. With the development of AI technology and the increasing demand for high-performance semiconductor devices, Canon is well-positioned to leverage its technological strengths in mature processes and advanced packaging lithography machines to further enhance its standing in the global lithography machine market.

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