Canon attempts to challenge ASML’s dominance in chipmaking tools

Canon attempts to challenge ASML’s dominance in chipmaking tools



Canon attempts to challenge ASML’s dominance in chipmaking tools

Chipmaking tool manufacturers usually don’t ⁣attract much attention. However, Canon caught the eye‍ of many investors ‍on⁤ October 13th with the ‌introduction​ of ‌a new device. The‌ Japanese company, known for its optical‌ equipment, claims that its “nanoimprint” lithography machine can etch⁢ the tiniest transistors‌ used‌ in⁤ advanced microchips. Until now, ⁤ASML, a Dutch lithographic tool⁣ manufacturer, has been​ the sole provider of such capabilities. Canon aims ⁣to further encroach on ASML’s‌ market by eventually producing two-nanometer chips.

The possibility ⁣of‍ breaking⁢ ASML’s monopoly on cutting-edge⁣ chip ‌supply ⁤chains is intriguing. ASML has⁢ long held ‌the largest share in the concentrated semiconductor industry. The world’s three largest chip ⁤manufacturers—Intel, Samsung, and TSMC—rely entirely on ​ASML’s extreme-ultraviolet (EUV) technology to produce state-of-the-art microprocessors for‌ smartphones and⁢ powerful data-center servers.

ASML’s EUV‌ systems use high-powered lasers to imprint electrical blueprints onto circular silicon wafers. In contrast, Canon’s alternative ⁣directly imprints chip designs onto these wafers using ‍a patterned mold. In theory, this allows for more intricate patterns. Additionally, because it⁢ involves fewer steps and eliminates the⁤ need for expensive lasers and ultra-smooth⁤ mirrors, it could be significantly cheaper than EUV lithography. ​ASML’s stock price dropped by⁢ over 2%,⁢ while Canon’s rose by nearly the same ‌amount ‌following the nanoimprint⁢ news.

2023-10-19 07:32:02
Post from www.economist.com
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