"Century's worst loss warning: Nikon's all in for the lithography machine business! Triggering a price war 'battle' against ASML Holding NV ADR (ASML.US)"

In order to compete for market share, former lithography machine giant Nikon is preparing to engage in a price war in the deep ultraviolet (DUV/ArF) lithography machine field with ASML Holding NV ADR(ASML.US). Yasuhiro Ohmura, the newly appointed CEO of Nikon who took office in April this year, stated that the company plans to compete by selling semiconductor lithography equipment at prices lower than its competitor ASML Holding NV ADR. Ohmura, who was previously in charge of Nikon's chip manufacturing business, mentioned that because many of Nikon's components are produced internally, the company is able to sell products at a lower price while maintaining profitability. Ohmura bluntly stated, "We can engage in a price war. Even if we lower prices, we can still ensure substantial profits." In Nikon's mid-term plan announced in May this year, the semiconductor equipment business has been listed as a key growth driver. Currently, Nikon and ASML Holding NV ADR are the only two companies producing ArF (argon fluoride) lithography equipment. Intel Corporation (INTC.US) previously accounted for 80% of Nikon's ArF lithography equipment orders. Ohmura admitted, "Apart from Intel Corporation, we lack sufficient track record, and our support capabilities have not yet gained market trust." Ohmura mentioned that the company is in talks with several American and Asian chip manufacturers and is "close to securing" orders for their ArF lithography equipment. In March this year, Nikon issued its most severe profit warning in history - forecasting a huge loss of 85 billion yen for the fiscal year 2025, setting a record for the company's worst performance in its 100-year history. Nikon's core lithography machine business is facing a complete defeat, plunging this once lithography machine giant into an unprecedented survival crisis. Nikon, once known as one of the "lithography machine three giants" along with ASML Holding NV ADR and Canon, held about 40% of the global lithography machine market in 2001, with almost one out of every two lithography machines worldwide coming from Nikon. However, its market share has now plummeted to single digits, with its competitiveness almost reduced to zero. Once surpassed by ASML Holding NV ADR with immersion technology, Nikon has been unable to catch up since then. Reports show that in the past six months ending in March, Nikon only shipped 9 lithography machines, all of which were older models with low technical content and significantly lagging behind in technology generation. In stark contrast, ASML Holding NV ADR sold 327 machines in 2025, with 48 of them being advanced EUV lithography machines, dominating the global high-end market. This means that Nikon, once the industry leader deeply tied to Intel Corporation and AMD, setting industry standards, has completely lost its competitiveness in advanced processes. The company not only failed to take advantage of the surge in demand for AI computing power but also found itself in a financial quagmire due to significantly reduced orders and stockpiles. Additionally, Nikon's high-stakes 3D printing business has become its biggest financial burden, as the metal 3D printing machine business incurred substantial impairment losses. The assets acquired by the company have not generated benefits yet and are surrounded by Chinese 3D printing manufacturers, completely dominating the consumer market while struggling in the industrial sector. Nikon's camera business is barely holding on against the impact of smartphones - in the first half of 2025, Nikon's imaging business revenue decreased by 4.4% year-on-year, with operating profit plummeting by 47.5%.