In a major development in the semiconductor industry, Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest chipmaker, is set to receive its first High-NA EUV lithography machine from ASML later this month. This marks a crucial step for TSMC as it seeks to maintain its lead in the competitive semiconductor landscape.
Just a few months ago, TSMC had publicly stated that it didn’t require ASML’s machines to manufacture future chips. However, the company’s decision to accept the High-NA EUV machine suggests a shift in strategy, likely fueled by the desire to stay ahead of its competitors.
This move puts TSMC on par with Intel, which has already begun receiving and installing ASML’s advanced High-NA EUV lithography machines, a costly investment that has amounted to billions of dollars. These machines are essential for manufacturing the most advanced chips with smaller features, crucial for boosting performance and efficiency.
ASML’s TwinScan EXE:5000 High-NA EUV machines come at a hefty price tag of approximately $380 million USD each, but for TSMC, which boasts a dominant position in the semiconductor market, this is a small price to pay for maintaining its technological edge.
TSMC’s plans involve using these cutting-edge machines to develop its next-generation A16 process node, equivalent to 1.6nm, by 2026. This ambitious project aims to push the boundaries of chip manufacturing and further strengthen TSMC’s position as the leader in the semiconductor industry.
Meanwhile, Samsung, TSMC’s main competitor in the chipmaking arena, is expected to receive its first High-NA EUV machine sometime between the fourth quarter of 2024 and the first quarter of 2025. This puts Samsung on track to catch up with TSMC and Intel in terms of advanced chip manufacturing capabilities by 2025.
The acquisition of these advanced lithography machines highlights the fierce competition among the industry giants as they race to develop and manufacture the most powerful and efficient chips. The race is on, and TSMC’s acquisition of the High-NA EUV machine is a testament to its commitment to staying ahead in the game.
