[News] AI Chip Demand Spurs TSMC’s High-NA EUV Deployment

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According to media reports, market sources previously indicated that TSMC received its first High-NA (High Numerical Aperture) extreme ultraviolet (EUV) lithography machine, the EXE:5000, from Dutch semiconductor equipment manufacturer ASML in September 2024.

This marks a shift in TSMC’s stance toward this advanced semiconductor technology—from initial caution to full adoption—aimed at maintaining its leadership position in the fiercely competitive semiconductor industry and addressing the rapid growth in demand for advanced AI chip manufacturing processes.

As reported by TechSpot, adopting High-NA EUV lithography machines is critical for TSMC’s development of sub-2nm processes. High-NA EUV increases the numerical aperture from 0.33 to 0.55, enabling higher resolution on wafers. According to TSMC’s roadmap, High-NA EUV lithography machines will be integrated into its A14 (1.4nm) process node, which is expected to enter mass production in 2027.

These advanced lithography machines will not be put into operation immediately. Extensive testing, fine-tuning, and process optimization are required before their integration into high-volume manufacturing. By the time these machines are fully operational, TSMC expects to have progressed to its A10 (1nm) process node, representing several generations of technological advancements. This timeline aligns with TSMC’s broader chip process development roadmap.

At TSMC’s Q3 2024 earnings call, CFO Wendell Huang outlined the company’s advanced node development plans, noting that the N2 process will be updated in 2026. These updates involve preparatory costs that increase with each successive node development, reflecting the growing complexity of advanced processes.

Each High-NA EUV lithography machine costs approximately USD 384 million. Nevertheless, TSMC’s technological leadership in EUV lithography is expected to attract more high-end customers seeking advanced chip manufacturing capabilities.

This could further widen the gap between TSMC and its competitors, particularly Samsung Electronics of South Korea. TSMC has already built a solid foundation with its current standard-aperture EUV technology.

In 2019, TSMC officially launched its N7+ node, the first process to use EUV lithography, operating around 10 standard EUV machines at the time. Since then, TSMC has rapidly expanded its EUV production capabilities, with EUV system sales growing tenfold from 2019 to 2023. Currently, TSMC accounts for 56% of the global installed base of EUV lithography machines, deploying them across its N5, N3, and upcoming N2 process nodes.

TSMC’s approach to EUV adoption is systematic and customer-focused. The company carefully evaluates new technologies based on their maturity, cost, and potential customer benefits before integrating them into high-volume production. TSMC plans to first use High-NA EUV lithography machines for R&D, developing the infrastructure and patterning solutions needed for customer-driven innovation, and then scaling up to meet customer demand.

 

(Photo credit: TSMC)