Not Letting ASML Dominate Alone — Japan's Lithography Giant Nikon to Wage a Price War: Intel Was Once a Major Customer

It has been reported that Nikon is preparing to tilt the global lithography market by escalating price competition with ASML. Nikon says? Not publicly. But the industry is watching. ASML of the Netherlands holds a near-monopoly on extreme ultraviolet (EUV) lithography — the machines that pattern the most advanced chips — while Nikon, historically a major supplier of deep ultraviolet (DUV) systems, is reportedly looking to win customers back with aggressive pricing and commercial offers. Intel was once a major Nikon customer, and industry sources say Nikon hopes to reclaim some of that patronage.

Background: a concentrated, geopolitically fraught market

The lithography business has long been a three-way duel between ASML, Nikon and Canon, but ASML pulled ahead with EUV technology that others could not match. That technological gap, plus export controls pushed by the U.S. and the Netherlands, has shaped who can buy what in China and elsewhere. Nikon does not produce EUV systems; its fight is in DUV and cost-competitive segments where volume and pricing matter more than single-machine capability. Reportedly, Nikon believes it can undercut ASML on price for many high-volume nodes — a strategy that could rewrite procurement dynamics for foundries and integrated device manufacturers.

What this means — for chipmakers and geopolitics

A Nikon-led price war would be good news for buyers facing tight capacity and high tool costs. It could accelerate upgrades in regions still able to import DUV equipment, but it may also attract regulatory scrutiny and political pushback, given the strategic nature of lithography tech and ongoing export controls. Will customers like Intel return in force? Will ASML respond by easing terms or doubling down on EUV superiority? The answers will depend on orders, government trade policy and whether Nikon can sustain lower margins without sacrificing R&D — and on how Western export rules continue to shape access to critical tools.