As the global semiconductor industry accelerates its evolution toward next-generation lithography technologies, discussions surrounding geopolitics and technological competition are heating up. The Netherlands recently signaled in diplomatic settings that parallel R&D efforts by multiple nations represent a normal state of competition within the tech industry, rather than measures specifically targeting certain countries. Meanwhile, the scope of cooperation is extending from traditional business dealings to emerging fields like photonics, attempting to find new growth points in low-energy technology. Although official statements have alleviated some tension, potential changes in export control policies continue to spark concern within the industry. Some argue that further adding immersion deep ultraviolet lithography machines to restriction lists could produce reverse incentive effects.
On the commercial front, the high cost of equipment is becoming a critical factor constraining sales. As an indispensable tool for advanced process manufacturing, the price sensitivity of extreme ultraviolet (EUV) lithography machines has risen significantly. Industry information indicates that the price of new high numerical aperture equipment has surpassed the €350 million mark. Even top-tier foundries have publicly acknowledged immense cost pressures, adjusting original deployment plans to instead optimize existing equipment capabilities. This shift in customer strategy compels manufacturers to reassess the pricing logic and market rollout pace of cutting-edge products.
Regional revenue structures are also undergoing profound adjustments. Data shows that South Korea's sales share has risen sharply recently, largely driven by large-scale procurement from memory chip manufacturers expanding production. In contrast, China's contribution rate is expected to decline noticeably, a trend confirmed by customs import data showing a significant drop in lithography equipment imports from relevant regions in the first quarter. This redistribution of market share reflects a restructuring of the global supply chain.
Faced with an increasingly complex regulatory environment, senior management has expressed demands for regulatory consistency. Internal sources indicate that the technology generations of currently restricted equipment are already relatively mature; tightening restrictions further would directly accelerate the building of autonomous replacement systems in restricted regions. This process is described as an inevitable choice under survival pressure. Once external environments sever supply sources, localized R&D will become the sole path to sustain supply chain operations.
Additionally, the company is undertaking organizational downsizing to cope with competitive pressures. To eliminate management redundancy, the firm plans to cut approximately 1,700 positions, primarily concentrated in management and coordination tiers. While this measure aims to boost operational efficiency, it has sparked employee protests and union dissatisfaction, revealing the internal growing pains faced during the transformation. The combination of external policy uncertainty and internal structural adjustments means this long-dominant enterprise is undergoing an unprecedented test.
