Industry Report Analysis: What New Opportunities Lie Behind the Expansion of the i-Line Lithography Machine Market?

Global Info Research (GIR) recently released the "Global i-Line Lithography Machine Market Report 2026: Comprehensive Analysis of Size, Key Players, Regions, Products, and Applications." Supported by in-depth research data and combined with industry development patterns and technological trends, the report provides a comprehensive and multi-dimensional systematic analysis of the global i-Line lithography machine industry. This 83-page professional report not only clearly presents the overall size, regional distribution characteristics, and competitive landscape of the global i-Line lithography machine market but also delves into the market potential of product segmentation and downstream application scenarios. By analyzing historical data from 2021 to 2025, the report offers a scientific forecast of market trends from 2026 to 2032, providing industry investors, manufacturers, downstream application companies, and policymakers with professional and practical decision-making references.

1. Core Size and Growth Trends of the Global i-Line Lithography Machine Market

As a key equipment in the mature process field of semiconductors, the market performance of i-Line lithography machines is closely related to the structural adjustments in the global semiconductor industry. According to GIR research data, in terms of revenue, the global i-Line lithography machine market reached $944 million in 2025, demonstrating a solid market foundation. Although the report does not specify the exact market size for 2032 or the compound annual growth rate (CAGR) from 2026 to 2032, industry logic suggests that with the rising demand for mature process chips in areas such as automotive electrification, 5G/6G network deployment, industrial automation, and the Internet of Things (IoT), the i-Line lithography machine market is expected to maintain steady growth.

From the perspective of sales volume and unit price, global i-Line lithography machine sales in 2024 were approximately 223 units, with an average unit price of $3.83 million. This price level reflects both the technical complexity of the equipment and its core value in mature process production lines. Notably, the overall gross profit margin of the i-Line lithography machine industry remains in the range of 45%-55%, significantly higher than that of ordinary mechanical equipment industries, highlighting the strong profitability of this field and explaining why leading equipment manufacturers and emerging players continue to focus on this market.

2. Technical Characteristics and Application Scenarios of i-Line Lithography Machines

1. Core Technologies and Equipment Composition

i-Line lithography machines belong to the "step-and-repeat" lithography system, with their technical core being the use of a mercury lamp's 365nm i-line spectrum (or equivalent 365nm light source), which accurately transfers circuit patterns from the mask to the photoresist-coated wafer surface. In terms of performance indicators, modern i-Line lithography machines generally feature a resolution of about 0.35μm and a numerical aperture of 0.45, compatible with 200mm wafer production lines. Some high-end models can even support 300mm wafer processing, achieving an excellent balance between resolution, depth of focus, and cost of ownership (CoO).

From the perspective of equipment composition, the key components of i-Line lithography machines include the exposure system, alignment system, grating system, and objective lens system. The precision and coordination of these components directly determine the lithography performance. For example, the stability of the exposure system's light source affects the clarity of pattern transfer, while the accuracy of the alignment system determines the matching degree between the wafer and the mask. Technical shortcomings in any of these components may lead to a decline in lithography yield.

2. Diversified Application Fields

The application scenarios of i-Line lithography machines are highly focused on semiconductor mature processes and specialized technologies, which can be divided into three main categories:

Front-end and back-end lithography processes: In mature process chip manufacturing, i-Line lithography machines are widely used in various lithography layers of front-end and back-end processes, covering part of the manufacturing processes of logic chips and memory chips.
Specialized device production: For power devices (such as SiC/GaN devices), CMOS image sensors (CIS), micro-electro-mechanical systems (MEMS), and compound semiconductors, the large depth of focus and high warpage tolerance of i-Line lithography machines can meet the processing requirements of special substrates.
Advanced packaging and special substrate processing: With the development of advanced packaging technologies (such as fan-out packaging, wafer-level packaging, and panel-level packaging), the application demand for i-Line lithography machines in this field is growing rapidly. Their flexible wafer/panel handling capabilities enable high-quality imaging of warped silicon wafers, glass substrates, and organic substrates, with costs significantly lower than more advanced DUV (deep ultraviolet) lithography machines.

From the perspective of downstream customers, the core user groups of i-Line lithography machines include two types: one is global mainstream IDMs (integrated device manufacturers) and foundries such as TSMC, Samsung, Intel, Micron, SK Hynix, SMIC, and Hua Hong; the other is analog/power chip and specialized process wafer fabs running 200mm and 300mm mature process production lines. The expansion of these customers' production lines directly drives the demand growth for i-Line lithography machines.

3. Competitive Landscape of the Global i-Line Lithography Machine Market

1. Key Players and Product Layouts

Currently, the global i-Line lithography machine market exhibits a competitive landscape characterized by "concentration among leading players with regional supplementation." The main manufacturers include:

Canon: With next-generation platforms such as the FPA-5550iZ2 series, Canon focuses on low-CoO "hybrid lithography" solutions that can simultaneously support 200mm/300mm wafer processing in logic, memory, and CIS fields. Some models can even handle larger substrates, achieving "multi-purpose use."
Nikon: Centered on the NSR-2205iL1 model, Nikon's i-Line lithography machines cover diverse applications such as logic, memory, SiC/GaN power devices, and MEMS, emphasizing high throughput and wide process windows, making them suitable for large-scale production scenarios.
ASML: Although ASML is renowned for its EUV (extreme ultraviolet) and high-end DUV lithography machines, it has also increased its focus on the i-Line market in recent years, launching models such as the TWINSCAN XT:260, which targets large-field exposure needs in advanced packaging, with production efficiency four times higher than traditional solutions.
Veeco: As a niche market player, Veeco's i-Line lithography machines primarily focus on specific segments, leveraging differentiated technologies to serve specialized process wafer fabs.
Shanghai Micro Electronics Equipment (SMEE): As the only domestic lithography machine manufacturer in China, SMEE's i-Line lithography machines have achieved mass production, mainly serving domestic mature process production lines and acting as a core force in promoting the autonomy and controllability of China's semiconductor equipment.

In terms of market share, Canon, Nikon, and ASML dominate the global i-Line lithography machine market, while emerging manufacturers like SMEE are gradually expanding their influence in regional markets (such as China). Against the backdrop of countries promoting semiconductor supply chain localization, the market share of domestic manufacturers is expected to further increase.

2. Regional Market Distribution

The global i-Line lithography machine market can be divided into five core regions, each with distinct market characteristics:

Asia-Pacific: Including China, Japan, South Korea, India, and Southeast Asia, this is the largest i-Line lithography machine market globally. China's demand is growing most rapidly due to the expansion of mature process production lines by domestic wafer fabs (e.g., SMIC, Hua Hong). Japan and South Korea, home to companies like Canon, Nikon, Samsung, and SK Hynix, are both production and consumption hubs.
North America: Centered on the U.S. and Canada, the main demand comes from mature process production lines of IDMs like Intel and Micron. The North American market also has higher technical specifications for equipment, preferring high-end i-Line models.
Europe: Countries such as Germany, France, and the U.K. have stable demand for i-Line lithography machines from automotive and industrial semiconductor production lines. ASML, as a European company, has a natural competitive advantage in this region.
Latin America, Middle East, and Africa: These regions have relatively smaller market sizes, with demand mainly coming from a few specialized process wafer fabs and electronics manufacturers, resulting in slower market growth.

4. Market Drivers and Challenges

1. Core Drivers

Structural expansion of mature process capacity: With the surging demand for mature process chips (e.g., 0.35μm and above) in automotive electronics, IoT, and industrial automation, global wafer fabs are increasing investments in 200mm and 300mm mature process production lines, directly driving demand for i-Line lithography machines.
Semiconductor supply chain localization policies: Countries and regions such as China, the U.S., and the EU are promoting the autonomy and controllability of semiconductor supply chains, viewing i-Line lithography machines as "low-risk, high-practicality" key equipment. Policy support for domestic equipment manufacturers' R&D and procurement provides policy-driven growth opportunities for the market.
Rise of advanced packaging technologies: 3D integration and advanced packaging are core paths for chip performance improvement in the post-Moore era. The large-field exposure and high-yield characteristics of i-Line lithography machines in advanced packaging make them important equipment in this segment, injecting new growth momentum into the market.

2. Key Challenges and Risks

Limitations of generational technology gaps: Compared to ArF immersion lithography machines (193nm light source) and EUV lithography machines (13.5nm light source), the 365nm light source of i-Line lithography machines has inherent disadvantages in resolution, making it unable to meet the needs of advanced processes below 7nm. The market is "marginalized" in mature process fields, where price sensitivity is higher, squeezing manufacturers' profit margins.
Impact of second-hand and refurbished equipment: The global i-Line lithography machine market has formed a sizable second-hand equipment circulation system. Refurbishment projects by original manufacturers and third-party dealers reintroduce large quantities of old equipment into the market, extending equipment lifecycles while continuously suppressing new machine prices and intensifying competition in services, upgrades, and spare parts.
Geopolitical and export control impacts: Countries like the U.S. and the Netherlands continue to strengthen export controls on semiconductor equipment. Although the focus is on advanced DUV and EUV lithography machines, related licensing risks, delivery uncertainties, and compliance costs spill over into the i-Line lithography machine field, particularly affecting equipment supply in markets like China.
High downstream customer requirements for cost and efficiency: Wafer fabs are increasingly stringent about cost of ownership (CoO), equipment utilization rates, and sustainability indicators (e.g., energy consumption), forcing equipment manufacturers to continuously invest in R&D to optimize automation, remote diagnostics, and energy-saving technologies while facing price competition from domestic manufacturers and refurbished equipment, creating a dual pressure of R&D investment and profitability.

5. Future Trends in the i-Line Lithography Machine Market

1. Technological Evolution Directions

Future technological developments in i-Line lithography machines will revolve around four main directions:

Performance upgrades and multi-scenario compatibility: Leading manufacturers will continue to launch new-generation platforms, further improving equipment throughput, overlay accuracy, and wafer warpage tolerance while expanding wafer size compatibility to achieve "front-end + packaging + specialized devices" multi-scenario coverage. For example, some Canon models can handle larger substrates to meet panel-level packaging needs.
Cost and sustainability optimization: By optimizing optical paths, wafer stage motion trajectories, and automation processes, manufacturers aim to reduce unit energy consumption and production cycle times. Additionally, the adoption of long-life light sources and predictive maintenance technologies minimizes downtime and service costs, further lowering customers' CoO.
Deep integration with specialized processes: To address the special needs of SiC/GaN power devices, MEMS, and advanced packaging, customized alignment modes and exposure solutions will be developed to enhance equipment capabilities for processing thick wafers and compound substrates, meeting the manufacturing demands of "More than Moore" devices.
Localized technological breakthroughs: In response to export controls and supply chain autonomy requirements, equipment manufacturers in emerging markets like China and India will increase investments in localized designs, including developing alternative 365nm light sources, achieving local supply of optical components and control electronics, and creating simplified architectures for specific mature processes, gradually broadening the market supply landscape.

2. Market Structure Change Predictions

From a product perspective, i-Line lithography machines will further differentiate toward "high resolution + wide compatibility." The demand share for models with ≦280nm resolution may gradually increase to meet higher-precision mature process and specialized device production. From an application perspective, demand for 300mm wafer models will grow faster than 200mm and 150mm models, primarily benefiting from the expansion of 300mm mature process production lines. Regionally, the Asia-Pacific (especially China) will become the core engine of global i-Line lithography machine market growth, with the market share of domestic manufacturers expected to rise from single digits to 15%-20%.

6. Core Chapters and Value of the Report

GIR's "Global i-Line Lithography Machine Market Report 2026" is divided into 15 chapters, with coherent logic and progressive depth, forming a complete market analysis system:

Chapters 1-3: Focus on industry fundamentals and the competitive landscape, clarifying the definition, statistical scope, and product classification of i-Line lithography machines while analyzing the operational data and competitive strategies of core companies to help readers quickly grasp the industry overview.
Chapters 4-11: Conduct market analysis from the "global-regional-national" three-tier perspective, presenting the overall trends in core regions such as North America, Europe, and Asia-Pacific while delving into segmented demand in national markets. Data is also broken down by product type and application field to provide precise references for regional layouts and product planning.
Chapters 12-15: Focus on market dynamics and strategic recommendations, sorting out drivers, challenges, and trends, analyzing industry chain structures and sales channel models, and finally extracting core conclusions and actionable strategic advice to help companies seize market opportunities.

For industry participants, the value of this report lies not only in providing data support but also in revealing market laws through professional analysis—for example, how to balance technology investment and cost control, how to adjust market strategies based on regional policies, and how to capture emerging demand from advanced packaging. These insights will provide important guidance for long-term corporate development.