Impact of COVID-19 on the Photolithography Market
The increasing demand for advanced semiconductor devices in several industries, such as consumer electronics, retail, automotive, and telecommunication, has positively impacted the photolithography equipment market over the past three years. The market grew at an estimated CAGR of 4.26 percent in 2018. However, it was during January 2020 that the negative impact of COVID-19 started causing supply chain disruptions and factory closures in China. Then, by March 2020, its impact branched out to other electronics manufacturing hubs.
The pandemic has hampered the growth of the global electronics market with the entire supply chain struggling to provide the needed components and finished goods to support the ongoing consumer demand, leading to a decline in sales of semiconductors and consequently the sales of photolithography components. The lockdowns imposed to control COVID-19 are continuously transforming the dynamics of various industries. The COVID-19 pandemic has created intense pressure on the globally integrated semiconductors industry.
The global impact of the coronavirus outbreak is expected to affect the performance of the photolithography market in 2020 significantly. The pandemic has compelled government authorities to enforce restrictions such as travel bans, halt on overseas activities, and the closure of factories and manufacturing units. A state of emergency has been declared in over forty countries, resulting in stock market volatility, a massive slowdown in the supply chains, and an uncertain future. As per the MRF analysis, the photolithography market growth is projected to gain momentum by the second quarter of 2021, while recording an average growth rate in the first quarter. The demand is likely to come from the deep ultraviolet (DUV) segment. Based on the analysis of the current scenario, the pandemic is likely to cause an economic slowdown for the next two-three quarters. It is expected that businesses will gradually resume operations as the lockdown restrictions are being eased in a phased manner.