Could Canon Become the Next ASML?
ASML Holding (NASDAQ: ASML) is often considered a linchpin of the semiconductor market for two reasons. First, the Dutch company is the world's largest manufacturer of lithography systems, which are used to optically etch circuit patterns onto silicon wafers. Second, it's the only producer of extreme ultraviolet (EUV) lithography systems, which are required to manufacture the world's smallest, densest, and most power-efficient chips.
That's why ASML controls more than 90% of the global lithography market. It also took ASML more than three decades to perfect its EUV technology. To many investors, ASML's early mover's advantage and market dominance suggest it only needs to worry about macro and regulatory headwinds instead of competitive challenges.
However, (NYSE: CAJ) -- the Japanese company best known for its cameras, printers, optical products, and medical equipment -- recently challenged that notion with a new "nanoimprint" semiconductor manufacturing system called the FPA-1200NZ2C. It claims this new system can produce the equivalent of 5nm to 2nm chips by imprinting circuit patterns like a stamp instead of etching them with lasers. Could this new chipmaking system turn Canon into the next ASML?
Source Fool.com
