Chip lithography: Zeiss expands German production by over 25,000 m2

Zeiss has expanded its semiconductor manufacturing operations in Germany, adding over 25,000 square meters of production and related facilities at its site in Oberkochen, east of Stuttgart. The company recently completed a new office building, which marks the broader expansion of its facility. This growth includes additional production areas, cleanrooms, and administrative spaces. Similar expansions are also underway at other locations, including Wetzlar in Hesse. The expansion comes amid rising global demand for semiconductors, driven by the need for advanced chips in computing, artificial intelligence, automotive systems, and more. Zeiss plays a critical role in this supply chain, supplying high-precision mirrors and lenses essential for extreme ultraviolet (EUV) lithography systems produced by ASML, the Netherlands-based firm that dominates the market for such equipment. These systems are vital for producing the smallest and most complex integrated circuits used in everything from smartphones to data centers. EUV lithography relies on ultra-clean optics, with precision rivaling that of microscopic scales. For example, the largest imperfections in these optical components would be comparable to a toy car if scaled up to the size of Earth. The process involves directing laser light onto tin to generate EUV radiation, which is then focused through intricate masks onto silicon wafers. The latest generation of EUV systems, known as High-NA EUV, features even larger mirrors designed to capture more light, enabling finer circuit patterns. Each High-NA EUV system requires over 40,000 components and weighs approximately 12 tons. Precision measurements of these mirrors take place in vacuum chambers measuring five meters in diameter. A single High-NA EUV system costs around 350 million euros, double the price of earlier models. These systems are indispensable for both logic chip fabrication, such as processors, and memory chip production, including DRAM and NAND flash. Major foundries like TSMC, Samsung, Intel, SK Hynix, and Micron rely on ASML’s technology to manufacture cutting-edge semiconductors. ASML plans to increase its production capacity by 30 percent in 2027 and another 30 percent by 2028. This expansion necessitates increased support from suppliers like Zeiss, which provides the specialized optics required for EUV lithography. However, the pace of expansion is constrained by the structure of Carl Zeiss AG, which is owned entirely by the Carl-Zeiss Foundation, a non-profit entity that operates independently of commercial interests. In addition to expanding optical modules, Zeiss is planning to produce more machines for the manufacturing, qualification, and repair of photomasks. These masks contain the blueprints for transistor structures that define the layout of microprocessors. The company is also developing “wafer fab solutions” for inspection, metrology, and defect analysis, which are crucial for subsequent stages of chip processing. These technologies are also integral to advanced packaging techniques, where multiple chips and memory components are combined onto a single substrate. The growing reliance on semiconductors reflects broader trends in technology and industry. With cloud hyperscalers constructing massive AI data centers, the demand for high-performance chips continues to rise. Meanwhile, everyday devices and vehicles increasingly incorporate sophisticated electronics, often featuring hundreds of individual chips. As the complexity and scale of semiconductor production expand, the collaboration between companies like Zeiss, ASML, and major chip manufacturers becomes ever more critical to meeting global demand.