Core Insights - Canon is thriving in the semiconductor manufacturing equipment market, particularly with its Nano Imprint Lithography (NIL) technology, which is expected to bring a paradigm shift in optical lithography processes [1][34] - The semiconductor industry experienced a downturn in 2023 after a surge in 2022 due to COVID-19, but is projected to recover in 2024, with most equipment shipments expected to increase [1][9] - The market for front-end semiconductor manufacturing equipment is primarily dominated by European and American manufacturers, with significant market shares held by companies like ASML, Lam Research, and Applied Materials [2][6] Market Share and Trends - The market size for major equipment types exceeds $10 billion, with lithography equipment valued at $24.4 billion, primarily dominated by ASML (94.1% market share) [2][6] - Japan holds significant shares in several equipment categories, such as coating and developing equipment (94.5%) and vertical diffusion furnaces (82.2%), but these markets are relatively small [2][6] - Japan's market share in front-end equipment has been declining since 2011, with projections indicating a further drop to 21.7% by 2024, while the U.S. is expected to hold 44.3% and Europe 29.2% [9][11] Canon's Performance - Canon has shown strong performance in the lithography equipment sector, with its market share increasing from 14.5% in 2011 to an expected 32.7% by 2024, while Nikon's share has significantly declined [16][34] - Canon's strategy focuses on KrF and i-line technologies, where it has achieved a dominant market position, particularly in i-line with a projected share of 74.6% by 2024 [28][34] - The company is developing NIL technology, which offers a cost-effective and simpler method for creating fine patterns, potentially disrupting the current lithography market dominated by ASML [34] Future Outlook - If NIL technology is successfully implemented in semiconductor mass production, it could weaken ASML's dominance in EUV and ArF immersion technologies, positioning Canon to establish NIL as a new business pillar [34] - The NIL technology, while facing challenges related to defects from contaminants on masks, presents a lower-cost alternative compared to EUV systems, which are priced over 30.8 billion yen [34]