TSMC (NYSE:TSM) may develop A16 chip tech without ASML's new High NA EUV machines
Taiwanese chipmaker TSMC (NYSE:TSM) announced that it might not use ASML's next-generation "High NA EUV" machines for its upcoming A16 chip manufacturing technology, set for development in 2027.
This decision stems from a careful consideration of cost versus benefit, as the new High NA lithography tools, expected to shrink chip designs by up to two-thirds, come with a significantly higher price tag.
Speaking at a conference in Amsterdam, TSMC executive Kevin Zhang highlighted that while the A16 plants could potentially accommodate the High NA technology, it is not a certainty.
"I like the technology, but I don't like the sticker price," Zhang remarked, emphasizing the high cost of the new tools.
High NA EUV machines are projected to cost more than 350 million euros ($378 million) each, compared to the 200 million euros for ASML's regular EUV machines.
The decision by TSMC reflects a strategic approach to balancing technological advancement with economic practicality.
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