Taiwanese chipmaker TSMC’s new chip manufacturing technology, A16, is currently under development for 2027. During a conference in Amsterdam, executive Kevin Zhang mentioned that TSMC may not necessarily need ASML’s next-generation “High NA EUV” machines for the A16 plants. These High NA lithography tools are expected to significantly shrink chip designs, but the higher cost and reliability of older technology must be considered.
Zhang expressed some reservations about the price tag of the High NA tools, which are expected to cost more than 350 million euros each compared to 200 million euros for ASML’s regular EUV machines. TSMC, which is ASML’s largest user of regular EUV machines, is weighing the benefits of the new technology against the costs involved. Zhang hinted that the A16 plants could potentially accommodate the High NA technology, but this is not confirmed yet.
ASML, as Europe’s largest tech firm, dominates the market for lithography systems that are crucial for chip manufacturing. These systems use beams of light to create the circuitry of chips, and they play a key role in determining how small the features on a chip can be. Smaller features lead to faster and more energy-efficient chips, making advancements in lithography technology highly significant for chipmakers.
In a recent development, Intel announced that it had become the first company to integrate ASML’s new High NA EUV lithography tools, marking an important milestone in the U.S. computer chip maker’s efforts to stay ahead of its competitors. These developments in lithography technology are driving