September 9, 2025
Canon is stepping back into the semiconductor spotlight with a bold strategic move. The Japanese company has opened a new lithography equipment plant in Utsunomiya, its first in 21 years, as part of a ¥50 billion ($320 million) investment designed to expand production capacity and strengthen its competitive edge in the global chipmaking market.
The Utsunomiya facility spans more than 67,000 square meters and will begin operations in September 2025. Full capacity is expected by 2027, when Canon’s annual output will exceed 300 systems across its three fabs. The expansion directly addresses booming demand for semiconductor manufacturing tools, driven by AI adoption and other emerging technologies.
While Canon holds a solid ~30% share of the overall lithography market (second only to ASML), its influence in cutting-edge semiconductor production remains limited. ASML’s extreme ultraviolet (EUV) systems dominate advanced chipmaking nodes. Canon’s counter is Nanoimprint Lithography (NIL)—a fundamentally different approach.
Unlike optical systems that rely on light projection, NIL works like a stamp, directly pressing circuit patterns onto wafers. Canon claims the technology significantly cuts costs and energy consumption while enabling process nodes as small as 2nm. If widely adopted, NIL could provide chipmakers with a viable, lower-cost alternative to EUV for next-generation manufacturing.
The timing aligns with a bullish outlook for semiconductors. According to World Semiconductor Trade Statistics (WSTS), the global market is forecast to grow 8.5% in 2026, reaching around $760 billion. Analysts project the industry could surpass $1 trillion by 2030, underscoring the sector’s critical role in the global economy.
Japan is already a powerhouse in semiconductor equipment, with exports hitting a record ¥4.5 trillion in 2024. Canon’s new fab reinforces this momentum, positioning the company as a more aggressive player in shaping the next wave of chip technology.
Canon CEO Fujio Mitarai framed the move as both a responsibility and an opportunity:
“The importance of semiconductors is growing. It is our duty to strengthen our system to ensure a stable supply of equipment.”
With the Utsunomiya plant and its focus on Nanoimprint Lithography, Canon is not just expanding capacity—it’s aiming to rewrite the playbook in advanced semiconductor manufacturing.
