TSMC Forgoes ASML’s High-NA EUV Machines Through 2029 Citing High Costs
Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker and ASML's biggest customer, has decided to forgo purchasing the Dutch company's most advanced lithography machines through 2029, citing prohibitive costs. The decision means TSMC will not adopt ASML's high numerical aperture extreme ultraviolet (high-NA EUV) lithography systems, which cost upwards of €350 million ($410 million) apiece and weigh as much as two Airbus A320s.
The machines represent a significant technological leap, capable of imprinting semiconductor lines just 8 nanometers thick—roughly 1.7 times smaller than the previous generation. However, TSMC's senior vice president Kevin Zhang expressed skepticism about the economic justification for the investment, stating he appreciated the high-NA EUV's capabilities but not the price tag. According to Zhang, TSMC's A16 node technology, scheduled for deployment in late 2026, can continue relying on the company's existing EUV equipment without requiring the newer machines.
The cost-benefit analysis reflects broader challenges facing chipmakers considering the high-NA EUV transition. Beyond the machines themselves, factors like halved reticle sizes and the need for larger cleanroom space complicate retrofitting existing fabrication plants. TSMC already operates multiple facilities specifically configured for ASML's earlier generation Low-NA EUV machines, making upgrades to the newer systems a complex and expensive undertaking.
Intel has taken a different path, already placing orders and receiving the first high-NA EUV shipment at its Oregon facility. TSMC's hesitation underscores how even industry leaders are carefully weighing technological advancement against substantial capital expenditures, particularly when existing tools continue performing adequately for current production demands. The company's decision to defer adoption through 2029 signals that high-NA EUV adoption may remain selective and gradual across the semiconductor industry, limited primarily to manufacturers willing to bear the significant capital and infrastructure costs.