The Japanese conglomerate is best known for its printers and cameras but hopes a business pivot will help get its stock price going again. 💡
Today, the company launched a tool that helps manufacture the most advanced semiconductors. Its “nanoimprint lithography” (NIL) system is the company’s attempt to compete with Dutch firm ASML, which leads the extreme ultraviolet (EUV) lithography machine industry.
This technology is in high demand because it plays a significant role in manufacturing semiconductors at 5 nanometers and below. Essentially, there’s a race to make semiconductors smaller and more powerful. And whoever can develop the tools needed to do that should benefit strongly from this secular growth trend. 🏭
Canon says its latest machine is able to make semiconductors equivalent to a 5nm process and go as small as 2nm. For context, Apple’s most recent iPhone models use a 3nm semiconductor. With TSMC and Samsung looking to make 2nm chips in 2025, Canon will likely attempt to siphon off some market share from ASML as overall industry demand surges.
While the company has been developing its NIL technology since 2004, it’s failed to gain meaningful traction in the world of increasingly complex semiconductors. 📊
However, it hopes the world’s renewed focus on the industry and rising geopolitical tensions between the West and China will help it secure a leadership spot in this space. It’s still unclear, though, if the company can ship this technology to China or if it will fall under current sanctions.
$CAJ shares were flat on the day as investors assessed whether this is all hype or a meaningful shift in the company’s business prospects. 🤔
