Nikon plans to undercut ASML on ArF immersion lithography tool prices to regain market share. The company’s new president, Yasuhiro Ohmura, said Nikon is in talks with several large chipmakers in the U.S. and Asia, with discussions nearing purchase orders.
Nikon’s new president outlines pricing strategy
Nikon and ASML are the only two companies that build ArF immersion lithography equipment. ASML holds over 80% of the lithography market, while Nikon shipped just 11 ArF systems in its fiscal year ending March 2024 and none in the first three quarters of fiscal 2025.
Nikon will launch a new ArF immersion platform in fiscal 2028, featuring a new lens and wafer stage. The platform is designed for compatibility with ASML’s installed tools. Ohmura noted that Nikon manufactures many parts in-house, giving it a cost advantage.
New ArF platform planned for fiscal 2028
Nikon posted a net loss of 86 billion yen ($540 million) for the year ended March, its worst ever, dragged down by weak equipment orders and a struggling metal 3D printing unit. Ohmura plans to narrow Nikon’s focus to cameras and chipmaking tools.
Demand for ArF immersion tools is climbing as AI chip production strains tool supplies. ASML shipped 48 EUV and 131 immersion DUV systems in 2025 and closed the year with a €38.8 billion order backlog. Ohmura argues chipmakers prefer multiple suppliers to keep equipment costs down.
Nikon’s ArF market share has declined since ASML pulled ahead through long-term R&D partnerships and exclusive handling of cutting-edge tools. Intel, which once accounted for 80% of Nikon’s ArF orders, has cut spending amid its own manufacturing troubles.
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