Transitioning to the latest lithography techniques demands top-tier EUV machines, enabling TSMC to efficiently produce 2nm wafers while minimizing defective batches. Earlier this year, TSMC began taking orders for this advanced process, and MediaTek plans to start crafting its first 2nm chipset by late 2025. However, pushing beyond 2nm into the sub-2nm domain necessitates sophisticated equipment, with ASML’s high numerical aperture (NA) technology being pivotal. Unfortunately, due to its hefty price, TSMC hesitates to place orders for these advanced machines.
The EUV machines currently in use by TSMC already come at a significant cost, yet they are nearly half the price of ASML’s NA technology, highlighting financial considerations. TSMC aims to refine the 2nm process within a few years and is eyeing the ambitious 1.4nm node, promising up to 30% power reduction, with mass production slated for 2028. Known as A14 or 14-Angstrom, this leap will likely require cutting-edge machinery like ASML’s High-NA equipment. Yet, as per recent reports, TSMC remains undecided about this transition.
Kevin Zhang, the Senior Vice President at TSMC, discussed the necessity of investing $400 million on ASML’s advanced machines. He expressed doubts about the justification for such an upgrade, particularly due to its staggering cost. TSMC has been maximizing the potential of its existing EUV tools for current processes, extracting extended value.
It’s possible TSMC will hold off on purchasing until their existing hardware becomes obsolete for more advanced processes. Meanwhile, ASML has customers eager to gain an advantage over TSMC, with five units of High-NA machines already shipped, including to Samsung. Samsung is rumored to be preparing for 1nm production, targeting 2029 for rollout.
Whether TSMC ultimately decides to invest in these High-NA machines remains uncertain. However, given its sustained leadership in the industry, TSMC might just be making the right moves without rushing into a costly decision.
