Extreme ultraviolet (EUV) lithography has emerged as the most likely successor to 193-nm lithography. We provide a technical overview of EUV lithography and a discussion of the advantages of EUV lithography over alternative technologies. The key challenges in developing EUV exposure tools for high-volume production are discussed. A brief assessment is given of the cost of ownership of EUV lithography in comparison with 193-nm immersion lithography. © 2005 Society of Photo-Optical Instrumentation Engineers.