Nikon to be top 2003 litho supplier, says researcher

NEW TRIPOLI, Pennsylvania -- A strong performance by Japan's Nikon Corp. in an otherwise "catastrophic year" for the semiconductor equipment industry will move the company ahead of ASML Holding NV and back to the top of a $2.8 billion lithography market, according to a report from The Information Network market research company.

In the first half of 2003 Nikon shipped 80 new tools against ASML's 55 and Canon's 35, the market researcher asserted.

Looking forward the company said it anticipates that ASML's share of the number of lithography tools sold in 2003 would drop to 33.6 percent in 2003, from 45.3 percent in 2002, while Nikon's share would increase to 44.6 percent in 2003 from 32.4 percent in 2002. Canon would also gain market share in 2003 rising from 21.0% in 2002 to 21.8 percent in 2003.

Ultratech, which had 1.2 percent of the chip lithography business in 2002 left the market and had zero share in 2003, according to The Information Network.

Nikon had been the leader in the lithography market for more than a decade before being dethroned by ASML in 2002, The Information Network said.

"The mix of tools sold plays a big factor in rankings," said Robert Castellano, president of The Information Network, in a statement. "DUV [deep ultra violet] tools at 193-nm [wavelength] can be priced as high as $10 million versus a low of $2 million for an i-line tool. Exchange rates also play a role, the top three suppliers are foreign based. Market share based on revenue will play itself out later as we get a clearer picture of the product mix of each company."

"Both Canon and Nikon introduced new lithography tools with faster throughputs in 2003 that negates ASML's throughput advantage with its TwinScan product line. The upturn in the Japanese market, where ASML is essentially locked out, is also a factor," added Castellano.