Canon plans to take on ASML, to launch new 'stamping' machine to disrupt chipmaking

Japanese technology giant Canon is set to enter the competitive field of semiconductor manufacturing, aiming to disrupt the dominance of industry leader ASML. Canon’s new “nanoimprint” lithography technology, developed over 15 years, is expected to start shipments as early as this year, as reported by the Financial Times. The technology involves stamping chip designs onto silicon wafers, providing a potentially cost-effective alternative to ASML’s light-based extreme ultraviolet (EUV) technology. Canon claims that its nanoimprint lithography is significantly cheaper and consumes up to 90% less power than ASML’s EUV technology. The move comes amid efforts by European and American governments to limit China’s access to advanced semiconductor technologies, creating an opportunity for Canon to regain ground lost to competitors in South Korea, Taiwan, and China over the past decades. While ASML’s EUV machines are crucial for producing the latest generations of chips, they come with a hefty price tag of over $150 million each, allowing Canon to position its technology as a more affordable alternative. Canon plans to initially focus on producing 3D Nand memory chips before expanding to more complex microprocessors. Canon’s technology is expected to face challenges in achieving high levels of miniaturization, starting at the 5-nanometer node and aiming for 2nm. Analysts expressed scepticism about the impact Canon can make, citing concerns about the technology’s maturity and its ability to compete with ASML’s proven EUV technology. The success rate in achieving a high yield of flawless chips will be a critical factor in determining the viability of Canon’s nanoimprint lithography. While there is hope that Canon could sell its machines to China, which ASML cannot do due to US export controls, Japan’s own export controls targeting advanced semiconductor manufacturing equipment may pose challenges. Canon acknowledges the uncertainty surrounding potential sanctions and the need for careful consideration in navigating these issues. The company plans to initiate deliveries for trial periods, aiming to convince customers of the value of integrating its machines into existing fabrication plants without significant layout changes. (With inputs from agencies)