Nikon's new CEO Yasuhiro Ohmura announced plans to undercut ASML on price for ArF immersion (DUV) tools, targeting...

Nikon's new CEO Yasuhiro Ohmura announced plans to undercut ASML on price for ArF immersion (DUV) tools, targeting large US and Asian chipmakers. This follows a period of weak shipments for Nikon (11 ArF systems in FY2024, none in first three quarters of FY2025), while ASML dominates over 80% of the lithography market and holds a monopoly on EUV systems. Ohmura argues that chipmakers want dual suppliers to control costs. ASML's ArF immersion machines average ~$82.5 million per unit, leaving room for a cheaper rival. Nikon plans to leverage in-house parts manufacturing for cost advantages. The immediate threat is limited to DUV, which still accounts for the majority of patterning steps even at advanced nodes. However, if Nikon successfully wins orders from major customers like Intel (which once accounted for 80% of Nikon's ArF orders) or TSMC, ASML could face pricing pressure and margin compression in a key product segment. Source: Tom's Hardware.