#What Impact Do High-NA EUV Systems Have on TSMC?
Recently, TSMC Chairman C.C. Wei confirmed that TSMC has purchased High-NA EUV lithography systems from ASML strictly for research and development purposes. These systems are not yet ready for mass production, largely due to their exorbitant cost, approximately $400 million per unit. This price tag is nearly double that of previous-generation EUV tools, which are already some of the most expensive industrial equipment available.
High-NA EUV technology represents a significant leap in semiconductor lithography, crucially influencing how fine circuit patterns can be etched onto silicon wafers. The term numerical aperture (NA) relates to the precision of the patterns that can be achieved; a higher NA allows for smaller, more densely packed transistors, resulting in chips that are not only faster but also more efficient.
TSMC is focusing its research on making this technology economically viable before it begins production. Wei underlined that achieving cost-effectiveness is a priority for the company ahead of any future large-scale manufacturing.
#How Will TSMC Proceed Without Full Adoption of High-NA EUV?
Realistically, the transition to High-NA EUV is not around the corner. According to TSMC’s Senior Vice President Kevin Zhang, the technology is not expected to be integrated into TSMC's product line until at least 2029.
Rather than rushing to adopt these new systems, TSMC is opting for a pragmatic approach. The company will utilize existing low-NA EUV equipment with multi-patterning techniques to advance its upcoming chip nodes, such as N2, A16, and A14. Multi-patterning involves etching circuit patterns in several passes, avoiding the immediate financial burden associated with High-NA systems, while still achieving advancements.
#What About TSMC's Competitors?
While TSMC takes a cautiously measured approach, competitors are advancing rapidly. ASML has stated that commercial chips utilizing High-NA EUV technology could be available within months, with Intel and SK Hynix leading this effort. Intel is focusing on this technology to reclaim chip manufacturing leadership after falling behind TSMC and Samsung.
Additionally, SK Hynix aims to utilize High-NA EUV for advanced memory chips, contributing to higher capacities and improved power efficiency. Given ASML's unique position as the singular supplier of EUV systems, this results in significant pricing power, making it critical for firms to achieve high utilization rates for economic success. TSMC's decision to delay suggests the company is not yet convinced it can achieve those levels of efficiency with High-NA technology.