TSMC to Receive ASML's Cutting-Edge High NA EUV Lithography Machines, Advancing 2nm Process by Two Generations

Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest semiconductor manufacturer, is set to receive ASML's most advanced High NA Extreme Ultraviolet (EUV) lithography machines before the end of the year, according to Nikkei Asia. These cutting-edge machines, priced at over $350 million each, enable semiconductor manufacturers to produce chips with smaller transistor linewidths.

TSMC is considering utilizing the High NA EUV lithography machines to produce chips for the A10 process technology, which is approximately two generations ahead of the 2nm node expected by the end of 2025, suggesting that mass production using these machines may not be seen until after 2030.

While TSMC is the largest semiconductor manufacturer globally, it is not the first to acquire ASML's latest equipment. Intel was the first to adopt the High NA EUV machines, receiving its first set in the first quarter of 2024 at its Oregon facility, and a second set in the second quarter, demonstrating Intel's efforts to regain a technological edge, particularly in AI chip manufacturing. Sources also indicate that Samsung will install its first High NA EUV lithography machine in the first quarter of 2025.

Securing ASML's most advanced lithography machines does not guarantee a smooth transition into the "angstrom" era. Instead, major semiconductor manufacturers are investing substantial funds in developing advanced packaging technologies to accommodate more chips. Even though High NA EUV offers more precise imaging than current EUV machines, chip manufacturers still need to adjust their designs accordingly. Moreover, High NA EUV machines are significantly larger than current lithography machines, requiring fabs to reorganize their production lines or even build new factories to accommodate ASML's most advanced offerings.

Currently, Intel, Samsung, and TSMC are the only companies known to be working on advanced chips that will leverage ASML's High NA EUV lithography machines. ASML has reported receiving orders for 10 to 20 of these multimillion-dollar machines.

ASML's monopoly on advanced EUV lithography machines, which are essential for manufacturing the next generation of semiconductors, has prompted the United States to invest in EUV research, aiming to reshape the semiconductor supply chain within the country. Although this plan may take years or even decades, it provides more options for chip manufacturers and fosters a healthy competition that drives progress in the semiconductor industry