Nikon is repositioning its semiconductor lithography business by targeting ASML on price, the Japanese optics and imaging company said through remarks made by its new president and CEO, Yasuhiro Ohmura, to Nikkei News. The company aims to offer lower-cost photolithography tools while maintaining profitability in the segment.
Ohmura told Nikkei that even when systems are priced below ASML's levels, there remains meaningful profit to be earned in lithography equipment. Nikon also indicated a strategic intent to reduce reliance on large, concentrated orders from customers such as Intel and to diversify its revenue base.
Nikon has a long history in photolithography. The firm entered the market in the 1960s and by the 1980s was a global leader, during a period when Japanese companies collectively held about 70% of the worldwide lithography market. In 1982 Nikon expanded its international footprint by establishing Nikon Precision Inc. in Silicon Valley.
Market dynamics shifted in the 1990s with the rise of ASML. The Dutch company gained a dominant position by developing collaborative global supply chains, a departure from Nikon's more vertically integrated manufacturing model. ASML later advanced extreme ultraviolet, or EUV, technology more quickly than Nikon.
Despite those shifts, Nikon retains strength in areas outside the most advanced node technologies. The company continues to develop equipment aimed at high-resolution packaging and holds a solid share in segments that do not require ultra-fine geometries. Nikon's offerings in these product areas include systems using KrF lasers and i-line technology, which remain relevant for image sensors and power semiconductors.
The company’s stated approach combines lower pricing with targeted product development, positioning Nikon to compete where advanced EUV capability is not the primary requirement. Management’s comments indicate a dual focus on preserving margins while broadening customer relationships beyond a small set of large buyers.
Contextual note - ASML currently controls more than 80% of the lithography market, a position Nikon is explicitly aiming to challenge by competing on cost and focusing on specific segments of semiconductor production.