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Canon tries to break ASML's grip on chipmaking tools - The Economist   

Purveyors of chipmaking tools seldom attract attention. Yet many investors’ heads turned on October 13th, when Canon unveiled a new piece of kit. It is easy to see why. The Japanese company, which makes optical equipment, claims that its “nanoimprint” lithography machine can etch the very smallest transistors used in the most advanced microchips. Such feats have hitherto been the preserve of ASML, a Dutch manufacturer of lithographic tools. Canon hopes to eat further into ASML’s business by eventually cranking out two-nanometre chips.

The possibility of breaking ASML’s stranglehold on the supply chain for cutting-edge chips is intriguing. The firm has long enjoyed the biggest monopoly in the concentrated semiconductor industry. The world’s three biggest chip manufacturers—Intel, Samsung and TSMC—depend entirely on its extreme-ultraviolet (EUV) technology to produce the cutting-edge microprocessors that go into smartphones and the powerful data-centre servers on which the computing cloud lives.

ASML’s EUV rigs use high-powered lasers to etch electrical blueprints onto circular silicon discs. Canon’s alternative, by contrast, directly stamps chip designs on such wafers using a patterned mould. In theory, this allows it to make more detailed patterns. And because it involves fewer steps and avoids the need for expensive lasers and supersmooth mirrors, it could be much cheaper than EUV lithography. ASML’s share price dipped by more than 2% and Canon’s rose by nearly as much on the nanoimprint news.

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