Japan’s Canon plans up to twofold rise in chipmaking equipment output
A factory in eastern Japan will support the planned 2027 expansion as chipmakers increase investment to meet demand fuelled by artificial intelligence.
- Canon plans to increase its semiconductor lithography equipment production in 2027 to between 1.5 and two times the level of 2026.
- This expansion is driven by a rapid growth in global semiconductor demand, fueled by the spread of artificial intelligence and major investment plans from chipmakers.
- The additional production capacity will primarily come from a new factory in Utsunomiya, Japan, which is scheduled for completion in 2025.
- Canon is the market leader in i-line lithography systems, which are used to manufacture memory and power chips.
A planned expansion at Japan’s Canon Inc. would raise semiconductor lithography equipment production in 2027 to between 1.5 and two times the 2026 level, according to informed sources.
Taiwan Semiconductor Manufacturing Co and South Korea’s Samsung Electronics Co are among the chipmakers pursuing large investment plans. Manufacturers worldwide are committing more funding to expand chip production as the spread of artificial intelligence drives rapid growth in semiconductor demand.
“Investment plans are developing at chipmakers in not only Taiwan, South Korea and China but also other parts of the world,” said Hiroaki Takeishi, who oversees industrial machinery as Canon’s senior managing director.
The prospect of chipmakers sustaining investment could support further growth in demand for manufacturing equipment. Takeishi indicated that the trend “may continue until 2028”.
I-line lithography systems are used in making memory and power chips, and Canon holds the largest share of this equipment market. Lithography machines create circuit patterns on wafers by exposing them to light.
In extreme ultraviolet lithography, which is used for the most advanced semiconductors, Dutch manufacturer ASML holds a virtual monopoly in the global market.
Sales of Canon’s lithography systems are forecast at 227 units in 2026. The company has yet to disclose a production forecast for the year.
The additional production will come mainly from the factory completed in 2025 in Utsunomiya, Tochigi Prefecture, eastern Japan.
[Copyright The Jiji Press, Ltd.]
