Taiwan Semiconductor Manufacturing (TSM) has decided to delay the implementation of ASML Holding NV's (ASML) most advanced lithography equipment, casting uncertainty over the commercialization timeline for the Dutch equipment giant.
TSM's Co-Vice President of Operations, Kevin Zhang, stated that the company currently has no plans to use ASML's High-Numerical Aperture Extreme Ultraviolet (High-NA EUV) lithography machines for mass production of chips, a decision that will remain in effect until at least 2029.
The equipment carries a price tag exceeding 3.5 billion euros (approximately 4.1 billion USD) and is considered the most sophisticated tool in semiconductor manufacturing.
ASML had anticipated that its High-NA EUV machines would enter large-scale mass production between 2027 and 2028. Based on this projection, the company set a revenue target of up to 600 billion euros by 2030.
As ASML's largest customer, TSM's procurement decisions directly influence market expectations for the equipment's commercial adoption. Furthermore, given that TSM is the world's largest purchaser of semiconductor manufacturing tools, its technological choices have a significant示范 effect on the entire industry.
Following this announcement, ASML's stock experienced a brief decline of 2%.
Cost is the Primary Consideration
In an interview, Kevin Zhang clearly stated that TSM will continue to deeply optimize the value of existing EUV technology. He explicitly noted that the next-generation High-NA EUV tools are "extremely, extremely expensive," underscoring the company's current capital allocation strategy.
Concurrently, Kevin Zhang announced that TSM's cutting-edge A13 chip process technology is scheduled for mass production in 2029.
This timeline coincides with the date set for the postponement of High-NA EUV adoption, further indicating TSM's strong confidence in the capabilities of current-generation EUV technology.
Pressure on ASML's Commercialization Expectations
For ASML's investors, TSM's stance carries significant implications. The market is closely monitoring the procurement progress of High-NA EUV equipment, viewing it as a key indicator for assessing ASML's long-term growth visibility.
Currently, while TSM has purchased a small number of High-NA EUV machines, they are used solely for research and development purposes and have not been deployed in mass production.
Given TSM's scale and influence in the semiconductor industry—it holds the largest budget for new fabs and equipment, and its manufacturing processes are often emulated by peers—this decision could potentially impact the entire industry's equipment adoption schedule.
While delaying the introduction of High-NA EUV, TSM has not abandoned its goal of enhancing chip performance. Kevin Zhang mentioned that the company is exploring methods to boost chip computing power without utilizing High-NA EUV equipment.
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