Photomask Market

Photomask Market Size:

The global photomask market size reached US$ 4.9 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 6.9 Billion by 2032, exhibiting a growth rate (CAGR) of 3.7% during 2024-2032. The photomask market is primarily driven by the increasing need for high-tech semiconductor devices and integrated circuits. rapid growth of the electronics and automotive sectors, ongoing advancements in lithography processes and increased innovation in the industry.

Photomask Market Analysis:

• Major Market Drivers: The photomask market is experiencing significant growth driven by due to the increasing need to produce sophisticated integrated circuit chips, and the development of electronics and automotive industries, promoting further innovations in lithography techniques.
• Key Market Trends: The notable trends include the rising adoption of EUV lithography, demand for high-resolution photomasks for advanced applications such as artificial intelligence and 5G technology, and the development of the mask inspection technologies in order to ensure quality and precision.
• Geographical Trends: Asia Pacific dominates the photomask market owing to the concentration of leading semiconductor manufacturers and emerging technologies, with North America and Europe being the second and third most important regions. New economics like that of Asia Pacific, namely China and South Korea, are rapidly becoming the dominant players in semiconductor production, which in turn increase regional market dominance.
• Competitive Landscape: Some of the major market players in the photomask industry include Advance Reproductions Corp., Applied Materials Inc., HOYA Corporation, Infinite Graphics Incorporated, KLA Corporation, LG Innotek Co. Ltd, Mycronic AB (publ), Nippon Filcon Co. Ltd., Photronics Inc., SK-Electronics Co. Ltd., Taiwan Mask Corporation, Toppan Printing Co. Ltd., among many others.
• Challenges and Opportunities: The market faces challenges such as high manufacturing costs, technological complexity, and stringent regulations. It also offers opportunities with an increased demand for smaller feature sizes, photomasks materials and processes, and growing technologies IoT and autonomous vehicles.
   

Photomask Market Trends:

Growing Demand for Advanced Semiconductor Devices

The growth of advanced semiconductor devices can be attributed to different emerging factors such as the wide adoption of the Internet of Things, growth in 5G technologies, and the cloud computing expansion and its data centers. As stated by a report of the U.S. Department of Commerce, in 2021, U.S. semiconductor sales rose by 29 % suggesting a strong market demand for the industry. These developments are demanding the production of faster, better, and higher-performance chips that are used for various purposes, such as smartphones and laptops, automotive electronics, and industrial equipment alike, which substantially drives the photomask market growth.

Rapid Expansion of Electronics and Automotive Industries

The global electronics industry is witnessing unprecedented growth which is mainly because of technological improvements, the rising customer taste for electronic devices, and the advent of Internet of things and wearable technology. The International Trade Administration projects that the global electronics industry will reach a market value of over $5 trillion by 2025 as an indication that more and more opportunities await semiconductor manufacturers, and hence, photomask makers. Also, the movement of the automotive industry into the direction of electric vehicles (EVs) and autonomous driving technology together with the connected vehicles demand is very likely to stimulate the development of advanced semiconductor solutions and thereby accelerate the photomask sector’s growth.

Technological Advancements in Lithography Processes

Innovation in lithography is crucial to allow the technology for fabrication of small, but more complicated semiconductor devices, with better performance and efficiency. The application of Extreme Ultraviolet (EUV) lithography is a tremendous technical step to the whole semiconductor industry's world. The International Technology Roadmap of Semiconductors (ITRS) reports that the number of EUV tools shipped has increased by as much as 50% in 2021 compared to 2020, reflecting the industry’s accelerated adoption rate of this cutting-edge lithography technology. Through EUV lithography, smaller feature sizes are achieved to higher resolution, translating to both improved chip performance and cost effectiveness. Such technological advances attract photomasks optimized for EUV lithography applications to be the main driver behind the photomask market’s growth curve.

Photomask Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on product, mask shop type and application.

Breakup by Product:

• Reticle
• Master
• Others
   

Master accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the product. This includes reticle, master, and others. According to the report, master represented the largest segment.

The key production item of photomasks, which uses master as a product type, leads to high demand for master in the photomask market. Master sets are used in the production of photomasks by using techniques like e-beam lithography or laser writing. They then become the source pattern that is replicated onto to create a photomask. This process ensures precise and accurate transfer of circuits onto semiconductor wafers. To produce photomasks with complex structures and submicron-sized patterns that are used for the fabrication of the most modern semiconductor technologies, masters are of utmost importance.

Breakup by Mask Shop Type:

• Captive
• Merchant
   

Captive holds the largest share of the industry

A detailed breakup and analysis of the market based on the mask shop type have also been provided in the report. This includes captive and merchant. According to the report, captive accounted for the largest market share.

Captive mask shops dominate the market due to the necessity of vertically integrated semiconductor fabs to have their photo mask production facilities near the manufacturing floor. This gives companies the opportunity to have much more control of their supply chain, cut down the lead times and ensure the safety of their intellectual property. Captive mask shops are suitable for semiconductor factories and big integrated device manufacturers that produce large volumes and have complex proprietary design processes. Through the possession of their own mask making factories, these enterprises can smooth their manufacturing process, efficiently arrange their production plan, and make sure the quality is good.

Breakup by Application:

• Optical Devices
• Discrete Components
• Displays
• MEMS
• Others
   

Optical devices represent the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the application. This includes optical devices, discrete components, displays, MEMs, and others. According to the report, optical devices represented the largest segment.

Rising demand for optical devices is the most essential driving factor in the photomask market as they are crucial elements of the lithography tool that is required for the production of semiconductors. These devices, called optical aligners and projection aligners, are especially important in the process of exactly transferring the patterns from photomasks to semiconductor substrates. As semiconductor technology moves towards smaller feature sizes and higher resolutions, the importance of optical devices gets more pronounced. It is necessary to ensure the quality and integrity of semiconductor devices with the correct precision and performance of optical devices. As per the U.S Bureau of Economic Analysis indicates, the production of these equipment, which consists of optical instruments used for semiconductor manufacturing, went up by 8% in the last quarter of the year 2021 after the third quarter.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific leads the market, accounting for the largest photomask market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific represents the largest regional market for photomask.

Asia pacific dominates the market as the the region comprises some of the largest global makers of semiconductors and this attracts high photomasks order placements. Moreover, the region has an electronics sector, which is based in China, South Korea, and Taiwan and is of great importance for the manufacturing of photomasks in semiconductor fabrication. In addition, it is worth mentioning that the investments in technology and infrastructures that the region make play a significant role in the growth of the global photomask market.

 As per the latest statistics released by government departments since 2022 suggest that the semiconductor industry in the Asia Pacific region is expanding. As per the Ministry of Trade of South Korea, semiconductor exports of the country in the first quarter of 2023 grew 12% compared to the same period of the year 2022. This is an expansion that shows the continuous requirements of photomasks in the Asia Pacific Asia region, thus taking the prime position in the photomask global market.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the photomask industry include Advance Reproductions Corp., Applied Materials Inc., HOYA Corporation, Infinite Graphics Incorporated, KLA Corporation, LG Innotek Co. Ltd, Mycronic AB (publ), Nippon Filcon Co. Ltd., Photronics Inc., SK-Electronics Co. Ltd., Taiwan Mask Corporation and Toppan Printing Co. Ltd.
• The key players in the photo mask market are engaging in strategies to stay at the forefront and meet the rapidly changing needs of the market. One of the major venues of investment is into research and development (R&D), where companies are budgeting a considerable share to develop the latest photomask materials, the technologies and the processes used for this purpose. In this context, these companies rely on innovation to be able to address the growing demands from semiconductor manufacturers of producing smaller chip features and higher resolutions. For instance, DNP developed an innovative UV photomask process dedicated to 5nm EUV (extreme ultraviolet) lithography. It has demonstrated DNP's focus on lithography technology development and the capability to satisfy the rigorous standards of the most up-to-date semiconductor fabrication process. Moreover, leading companies are ramping up their manufacturing capacities to stay in sync with the escalating market demand. These companies increase their production base through the expansion of the facilities so that they can grow their operations and target a wider range of customers, thus tapping into the existing market opportunities.

Photomask Market News:

• In Feb 7, 2024, Toppan Photomask collaborated with IBM with common efforts to undertake research and development (R&D) on EUV semiconductor photomasks. This mutually cohesive collaboration envisages strength-pooling of the respective competences and assets of both companies to significantly advance EUV lithography technology, notably in manufacturing masks that produce enriched resolution and quality. The collaboration of TPMM and IBM, each having their own vast expertise in photomask manufacturing and semiconductor research respectively, is aiming to confront major problems that EUV lithography has faced and to further advance the next generation of photomask solutions. The contract signifies the priority of both companies in R&D and semiconductor Industry development.
• In April 27, 2023, AGC, a well-known manufacturer based in Tokyo announced plans to increase the production capacity of EUV lithography photomask blanks at its subsidiary. Known for its expertise in glass, chemicals, and high-tech materials, AGC's decision demonstrates its dedication to meeting the growing demands of the semiconductor industry. By expanding the production capacity of EUV lithography photomask blanks, AGC aims to address the increasing need for cutting-edge solutions in semiconductor manufacturing. This expansion initiative is in line with AGC's strategic vision to strengthen its position as a major provider of essential materials for advanced lithography.

Photomask Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the photomask market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global photomask market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the photomask industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.