In the complex process chain of semiconductor manufacturing, lithography materials play an extremely critical role, and their market dynamics have always attracted the attention of the industry. According to the 2025 Key Materials for Lithography Materials Report released by TECHCET, the lithography materials market is showing a series of interesting development trends.
From the perspective of the growth trend of market size, the lithography material market will usher in a relatively strong growth momentum in 2025. Driven by the recovery of the semiconductor market, TECHCET forecasts lithography materials revenue to grow 7% to $5.06 billion this year. Among them, the demand for advanced photoresists, especially extreme ultraviolet photoresists (EUV), has risen sharply, and is expected to increase by 30% year-on-year, becoming the main driving force for market growth. With the increase in the production of advanced node equipment chips such as logic chips and dynamic random- access memory (DRAM) chips, auxiliary materials and expansion materials will also usher in steady growth. Looking ahead, the lithography materials market is expected to continue to expand at a CAGR of 6% through 2029.
Looking back at 2024, the lithography materials market has shown a positive development trend, with a modest revenue growth of 1.6% to $4.74 billion. Photoresists as a whole grew by 1 percent, while EUV photoresists saw the most significant growth, with a 20 percent year-on-year increase. Auxiliary materials and extended materials also had a good growth performance of 2% respectively. The development of advanced node processes has led to a steady increase in the demand for photoresists, especially EUV photoresists; At the same time, the development of 3D NAND technology has led to an increase in the use of traditional KrF and ArF photoresists, which has jointly promoted the positive development of the market.
However, the development of the lithography materials market is not all smooth sailing, and many factors will have a significant impact on its future growth. The trend of supply chain localization is one of the key factors. The United States, South Korea, Taiwan and Chinese mainland are building new semiconductor manufacturing facilities, a trend aimed at reducing dependence on external supply chains and increasing industrial autonomy. However, at the same time, it may also lead to the adjustment of the global lithography material supply chain pattern, which will have a certain impact on the balance of supply and demand in the market.
image: Lithography Materials Market: Growth, Drivers, and Challenges
Geopolitical tensions should not be ignored either. Restrictions on advanced materials and China's development of advanced lithography technology have made the supply of lithography materials challenging. The development of advanced lithography technology is highly dependent on specific materials, and the limited supply of materials due to geopolitical factors may slow down the development of the semiconductor industry in some regions, and at the same time, it will also prompt relevant regions to increase investment in the development and production of lithography materials in order to seek self-sufficiency.
Technological innovation is the core driving force for the sustainable development of the lithography materials market. In the quest for higher resolution and smaller process nodes, innovations such as dry photoresist deposition and nanoimprint lithography are critical. These new technologies not only meet the stringent requirements of advanced node processes for lithography materials, but are also expected to open up new market applications. In addition, with the increasing environmental awareness, the semiconductor industry is also actively addressing challenges such as reducing the use of per- and polyfluoroalkyl substances (PFAS)-related chemicals. At least one major photoresist company has successfully developed a non-PFAS KrF photoresist with good performance, which provides a new solution for the sustainable development of the industry.
Overall, the lithography materials market is promising and has great growth potential, but it also faces challenges in many aspects, such as supply chain, geopolitics and technology. Semiconductor manufacturers, lithography material suppliers, and related scientific research institutions need to pay close attention to market dynamics, increase R&D investment, and actively respond to various challenges to seize the opportunities brought by market growth. In the context of increasingly fierce competition in the global semiconductor industry, the development of the lithography material market will have a profound impact on the pattern of the entire semiconductor industry.
