EUV Lithography

EUV Lithography represents a critical bottleneck in the semiconductor supply chain, as ASML holds a monopoly as the sole global supplier of Extreme Ultraviolet (EUV) lithography systems. These machines are indispensable for patterning the tiniest features on chips, enabling production at advanced nodes from 7nm down to 3nm using standard EUV with 0.33 numerical aperture (NA). The shift to High-NA EUV (0.55 NA) is now pivotal for sub-2nm nodes, offering enhanced resolution for denser transistors and more complex structures. This bottleneck arises from the extraordinary complexity of EUV technology, particularly its optical systems and light sources, which involve over 100,000 components and require unprecedented precision. Disruptions here constrain the scaling ambitions of leading foundries, directly impacting the availability of cutting-edge logic chips for AI, high-performance computing, and mobile applications.

Currently, ASML is expanding capacity with targets of 90 standard EUV units and 20 High-NA units by 2025-2026, yet persistent challenges in the supply chain for mirrors, light sources, and other subsystems result in lead times extending 12-18 months or more. Recent demonstrations, such as Imec's use of EUV lithography to fabricate solid-state nanopores on January 7, 2026, underscore the technology's versatility in enabling novel device structures, though this remains within research contexts rather than high-volume manufacturing. Broader industry updates, including TSMC's outlined 2nm production timeline as of early January 2026, highlight ongoing dependencies on EUV availability amid rising material costs and geopolitical equipment regulations.

Key players center on ASML as the source, with its suppliers like Zeiss for optics and Trumpf for light sources forming the upstream chain. Affected parties include major foundries and logic producers: TSMC, Samsung Foundry, and Intel, all reliant on EUV for their leading-edge processes in the Equipment and Foundry & Logic segments. These companies face allocation pressures, prioritizing high-value customers and delaying broader capacity ramps.

The outlook points to gradual capacity growth aligned with ASML's stated targets through 2026, though lead times are likely to remain elevated due to technical intricacies. Foundries continue to optimize existing EUV tools via multi-patterning and process tweaks, but sustained progress toward sub-2nm nodes will hinge on High-NA EUV deployment, with initial systems already shipping to early adopters like Intel.