Canon Inc. has ventured into the semiconductor manufacturing sector following its acquisition of Molecular Imprints Inc., launching a nanoimprint system that competes with industry leaders ASML Holding NV (AS:ASML) and Nikon (OTC:NINOY) Corp.
The newly launched technology has the capability to create 5-nanometer scale circuits utilizing extreme ultraviolet lithography (EUV), and Canon has expressed ambitions to reach next-generation 2nm production through future enhancements. Memory makers including SK Hynix Inc., Toshiba (OTC:TOSYY) Corp., and Kioxia Holdings Corp. have tested Canon's machines, which bypass traditional photolithography to directly imprint circuit patterns onto silicon wafers.
Despite previous defect issues and potential implications on the US-China trade war due to existing sanctions on EUV machines, Canon's innovative technique might not fall under these restrictions. The company's shares have seen a 26% increase this year, a rise attributed to applications of artificial intelligence.
In addition to launching its new technology, Canon is building its first plant in two decades in Utsunomiya, which is expected to be operational by 2025.
Meanwhile, ASML Holding NV, a supplier to Taiwan Semiconductor Manufacturing Co., has reported five consecutive quarters of revenue growth and is projecting a 30% increase in net sales this year. Despite Canon's entry into the market, ASML continues to demonstrate strong performance.
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