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ASML and Nikon enter back-end lithography market to challenge Canon dominance in advanced packaging
Tuesday, January 20, 2026 at 08:52 AM
As the focus of semiconductor performance improvement shifts from front-end miniaturization to back-end high-density advanced packaging, ASML and Nikon are entering the lithography equipment market for back-end processes. This space is currently dominated by Canon, but the increasing demand for generative AI chips is driving competition in advanced packaging equipment.
Context
ASML is expanding its semiconductor dominance by entering the advanced packaging and assembly market with its new XT260 i-line scanner, scheduled for initial delivery in 2025. This move marks a strategic entry into the "back-end" process, directly challenging the long-standing stronghold of Japanese rivals Canon and Nikon. By targeting this segment, ASML aims to capture the explosive demand for AI chip architectures that rely on sophisticated packaging, such as interposers and 3D stacking, to sustain performance gains as traditional scaling slows.
The entry disrupts a sector where Canon currently holds a dominant 60% share of i-line shipments. ASML’s new system offers a wide-field exposure area and an industry-leading productivity of 350 wafers per hour, specifically optimized for high-volume AI accelerator production. With the global advanced packaging market projected to grow from $46 billion in 2024 to over $79.4 billion by 2030, ASML is positioning itself to own the entire lithography value chain from front-end fabrication to final chip assembly.
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