TSMC, a Taiwanese chipmaker, is currently developing a new chip manufacturing technology called A16, which is expected to be ready by 2027. The company’s executive stated that they may not need to use ASML’s next generation “High NA EUV” machines for this technology. These High NA lithography tools are designed to shrink chip designs by up to two-thirds, but their higher cost is a factor that chipmakers must consider when deciding whether to use them, or stick with older technology that may be more reliable.
During a conference in Amsterdam, Kevin Zhang from TSMC mentioned that while it is possible for the company’s A16 plants to accommodate the High NA technology, this is not yet certain. TSMC is currently the largest user of ASML’s regular EUV machines, but Zhang expressed concerns about the high cost of the High NA tools, which are expected to exceed 350 million euros each, compared to 200 million euros for ASML’s regular EUV machines.
ASML is a dominant player in the market for lithography systems, which are essential for creating the circuitry of chips using beams of light. Chipmakers rely on lithography technology to improve chips, as smaller features on a chip mean increased speed and energy efficiency. Intel recently announced that they have assembled one of ASML’s new High NA EUV lithography tools, becoming the first company to do so as part of their efforts to surpass their competitors in the chip industry.