Ushio's Breakthrough In The Niche Extreme Ultraviolet Lithography market

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A trivial company in Nihon by the name of Ushio (TYO:6925) had not fabricated a splash with its declaration in July that they had perfected and received the first acceptance (that had been delivered to an inspection equipment manufacturer and performed well for inspection tool development) for their method to examination EUV chip designs with ultra-precise lighting (SN LDP) based on "evaporating the tin on the electrode with laster trigger and exciting the evaporated can with the discharge-produced plasma". This technique co-ordinate to the visitor'south statement is "college intensity" and "space-saving" compared to the alternatives - LPP/SN and DPP. This is very good news for the semiconductor fabrication manufacture.

EUV refers to the process that is soon to enter mainstream adoption (once all developmental impediments are cleared) as the means whereby the adjacent generation of semiconductor chips will be fabricated - at nodes lower than 7nm. EUV has been in the development pipeline for decades and last month Samsung (KRX:005930) announced information technology would utilise the technique to manufacture the SOC powering its latest and greatest Galaxy Note 10 - the Exynos 9825.

Autonomously from Samsung, Intel (NASDAQ:INTC) and TSMC (TPE:2330) are known to have plans to use EUV to go to 7nm and beyond. Nevertheless, they will be obtaining lithography machines fit for the purpose of ASML Belongings NV and not specialist suppliers like Ushio (who are contributing essential pre-requisites and complementary technologies to enable EUV mass-production).

Ushio's Breakthrough and Market Monopoly

Ushio has perfected the low-cal source to test patterned EUV masks ( Squares fabricated out of drinking glass that is used every bit stencils for designing chips). These stencils have an extremely depression tolerance production meaning even tiny microscopic defects will introduce deformities into the design rendering the product useless for its intended marketplace, this is where Ushio has managed to change the game by producing a viable calorie-free source for testing the templates for defects.

Co-ordinate to a company release on its website in July "Ushio has been conducting research and development of the loftier-brightness EUV light source and has improved the performance and reliability past providing research and evaluation service using Ushio'southward high-effulgence laser-assisted belch-produced plasma EUP light source in the EUV exposure and assay facility of the Netherlands organization for Practical Scientific Inquiry (TNO) from March 2017". This refers to a prior agreement between the two entities whereby TNO in the Netherlands has sought and applied Ushio's technology in conducting EUV research. Ushio says "major manufacturers" are verifying EUV lithography for practical utilize and Ushio's light source for mask (the EUV stencil or template) inspection is primal to "plant a EUV lithography mass-production technologies.

According to the CEO, the EUV technology developed will turn profitable in the adjacent fiscal. This development positions Ushio as 1 of the handfuls of companies in the sector enabling the successful deployment of EUV. "The infrastructure is now mostly set," CEO Koji Naito was quoted as saying in an interview. He farther explained "Testing equipment was i of the things holding back EUV. With that piece in place, production efficiency and yields can become up". It is besides important to notation that the company does not plan on entering the mass market in diverse other segments but will basically be the sole supplier for its niche. Koji Naito had the following to say on the question of Ushio'south target market, "Nosotros don't chase the mass market, even though in that location is potentially a ton of money to be made in dwelling lighting or automotive,". "Instead, we want to focus on niche areas and do things that others tin't."

Ushio supplies 80% of the market for lithography lamps used in the manufacturing of LCD displays and over 95% of the market for excimer lamps used to make clean silicon wafers is supplied past the company. The company has filled a vacuum in the industry and successfully capitalized on it. Founded in 1963 its sales accept tripled over the past 25 years. Ushio is but one of the companies in the Greater Tokyo area specializing in niche loftier engineering science outside of its mass application in high volume products. Few know that specialist suppliers of the description of Ushio be simply these companies are part of Japan'south dominance in semiconductor manufacturing and are playing a part in the Japan-South Korea trade state of war.