smee's lithography breakthrough: a potential asml challenger?
Ottawa, Sunday, 11 May 2025.
techinsights reports that smee’s ssa800 193-immersion tool shows promise in 28nm manufacturing. this could disrupt the lithography equipment market, currently dominated by asml. the ssa800, while potentially capable, needs to be significantly cheaper to compete with asml. some estimate it would need to be sold at a fraction of the cost, even as low as ten percent, to achieve similar value for customers. this development arrives after reports of huawei’s 7nm chips made by smic.
asml’s market dominance
ASML, founded in 1984, has established itself as a leader in lithography [1]. The company’s TWINSCAN® platform, initially codenamed Atlas, marked a significant advancement [1]. ASML’s platforms have evolved, with the ‘XT’ platform developed for immersion technology and the ‘EXE’ platform for extreme ultraviolet (EUV) lithography [1]. These innovations have solidified ASML’s position, making it a critical player in semiconductor manufacturing. Any potential competition from SMEE will be closely watched by investors and industry analysts [alert! ‘impact on market share uncertain’].
potential impact on asml’s stock
SMEE’s potential entry into the 28nm market could affect ASML’s stock (ASML:AMS). If SMEE can produce lithography tools at a significantly lower cost, it could pressure ASML’s pricing [1]. Investors might be concerned about potential market share erosion, impacting ASML’s revenue and profitability. However, ASML’s technological lead in more advanced nodes, like EUV, provides a buffer [1]. The actual impact will depend on the performance, reliability, and cost-effectiveness of SMEE’s SSA800 tool [alert! ‘need more information on SMEE tool performance’].
broader market trends
The semiconductor industry is experiencing growth, partly driven by advancements in AI, IoT, and 5G [2]. This growth increases the demand for precision tool cleaning, with the market projected to reach approximately $2.5 billion by 2034, growing at a CAGR of 8.1% from 2025 [2]. Asia-Pacific is expected to hold the largest market share in precision tool cleaning, at around 45% [2]. ASML’s expansion plans at the Brainport Industries Campus (BIC) near Eindhoven Airport, supported by a €2.5 billion investment from the Dutch government, signal confidence in future growth [3].
asml expansion and future outlook
ASML’s potential expansion at the Brainport Industries Campus (BIC) indicates a strategic focus on maintaining its leadership [3]. The proposed investment and creation of approximately 20,000 new jobs reflect ASML’s commitment to innovation and meeting future demand [3]. Stijn Steenbakkers, the Alderman for Brainport, emphasized the importance of investing in strategic autonomy and the new economy [3]. ASML and Steenbakkers are scheduled to present proposals to Eindhoven city councillors in September [3].