Dutch semiconductor equipment giant ASML has hinted at the potential for receiving significant orders from key customer TSMC in the coming quarters, according to a June 5th report from Reuters.

Reuters, citing information disclosed at a Jefferies-hosted investor call, noted that ASML’s CFO, Roger Dassen, expressed optimism about the progress of commercial discussions with TSMC, suggesting they are close to concluding. Reportedly, it is anticipated that ASML could receive significant orders for 2-nanometer related equipment as early as the second or third quarter. The report also mentioned that TSMC is expected to receive ASML’s latest High-NA EUV lithography equipment sometime this year.

According to the report, ASML predicts strong demand continuing until 2026, driven primarily by government-subsidized fabs being built around the world.

As per Reuters, each High-NA EUV machine costs over EUR 350 million, and ASML has already received dozens of orders from customers, including Intel, TSMC, Samsung Electronics, SK Hynix, and Micron. Among these, Intel was the first to place an order and will be the first to receive the equipment.

Per a report from Bloomberg, TSMC had previously expressed concerns about the high pricing of ASML’s latest equipment. Kevin Zhang, Senior Vice President of Business Development at TSMC, stated during a technical symposium in Amsterdam on May 14th that the next-generation process “A16,” scheduled for release in the second half of 2026, may not necessarily require the use of High-NA EUV lithography equipment.

Dr. Kevin Zhang further remarked that while he appreciates the capabilities of High-NA EUV, he finds its price tag to be unlikeable.

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(Photo credit: ASML)

According to a report from a Japanese media outlet The Daily Industrial News, it reported that Micron Technology plans to build a new plant in Hiroshima Prefecture, Japan, for the production of DRAM chips, aiming to begin operations as early as the end of 2027.

The report estimates the total investment to be between JPY 600 billion and 800 billion (roughly USD 5.1 billion). Construction of the new plant is scheduled to begin in early 2026, with the installation of extreme ultraviolet (EUV) lithography equipment.

The Japanese government has approved subsidies of up to JPY 192 billion (roughly USD 1.3 billion) to support Micron’s production of next-generation chips at its Hiroshima plant. The Ministry of Economy, Trade and Industry stated last year that this funding would help Micron incorporate ASML’s EUV equipment, with these chips being crucial for powering generative AI, data centers, and autonomous driving technology.

Micron initially planned to have the new plant operational by 2024, but this schedule has evidently been adjusted due to unfavorable market conditions. Micron, which acquired Japanese DRAM giant Elpida in 2013, employs over 4,000 engineers and technicians in Japan.

Beyond 2025, Japan is set to witness the emergence of several new plants, including Micron Technology’s new 1-gamma (1γ) DRAM production facility in Hiroshima Prefecture.

JSMC, a foundry subsidiary of Powerchip Semiconductor Manufacturing Corporation (PSMC), is collaborating with Japan’s financial group SBI to complete construction by 2027 and begin chip production thereafter.

Additionally, Japanese semiconductor startup Rapidus plans to commence production of 2-nanometer chips in Hokkaido by 2027.

Japan’s resurgence in the semiconductor arena is palpable, with the Ministry of Economy, Trade, and Industry fostering multi-faceted collaborations with the private sector. With a favorable exchange rate policy aiding factory construction and investments, the future looks bright for exports.

However, the looming shortage of semiconductor talent in Japan is a concern. In response, there are generous subsidy programs for talent development.

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(Photo credit: Micron)

Intel’s early adoption of ASML’s High Numerical Aperture Extreme Ultraviolet Lithography (High-NA EUV) equipment is seen by many as a crucial move for Intel to reclaim its technological leadership. Yet, according to a report from CNA, industry sources cited in the report have warned that the high cost of High-NA EUV could lead Intel to face the dilemma of expanding losses.

As Intel secures High-NA EUV equipment, the Korean media outlet TheElec reported that ASML plans to manufacture five High-NA EUV equipment this year, all of which have been booked by Intel. TSMC’s decision to continue using existing EUV equipment for its A16 process, rather than adopting High-NA EUV, has drawn significant attention and sparked lively discussion.

Per a report from Reuters, Intel CEO Pat Gelsinger has acknowledged that the previous decision to oppose using ASML’s EUV equipment was a mistake, which hampered the profitability of Intel’s foundry business. He stated that, with the adoption of EUV equipment, Intel is now highly competitive in terms of price and performance. There is widespread interest in whether Intel’s early adoption of High-NA EUV equipment will help it regain its position as a technology leader.

On the other hand, TSMC plans to mass-produce its A16 technology by 2026, combining nanosheet transistors with a supertrack architecture, garnering attention from the industry.

Ray Yang, the consulting director at Industry, Science and Technology International Strategy Center of ITRI (Industrial Technology Research Institute), stated that TSMC’s decision not to adopt High-NA EUV equipment for the A16 process was likely made after a comprehensive evaluation.

Yang mentioned that TSMC is undoubtedly aware of the benefits that High-NA EUV equipment can bring. However, given the high costs, TSMC has chosen to meet its customers’ diverse needs through other means.

According to ASML, High-NA EUV equipment increases the numerical aperture from 0.33 to 0.55, providing higher-resolution imaging capabilities. This improvement enhances precision and clarity, simplifies the manufacturing process, reduces production time, and boosts production efficiency.

During a technical symposium in Amsterdam on May 14th, TSMC’s Senior Vice President of Business Development and Co-Chief Operating Officer, Dr. Kevin Zhang, remarked that ‘I like the high-NA EUV’s capability, but I don’t like the sticker price.’

Each EUV system from ASML costs around USD 180 million, while High-NA EUV equipment is priced at USD 380 million, more than double the cost of EUV.

Ray Yang noted that the importance of advanced semiconductor packaging is increasing and will play a crucial supporting role. He argued that Intel’s rush to acquire High-NA EUV equipment is a case of choosing the wrong battlefield and weapon because High-NA EUV equipment is not the sole decisive factor for future success.

Ray Yang stated that as the global leader in semiconductor foundry services, TSMC has numerous customers, a comprehensive ecosystem, and ample capital. If customers demand and are willing to pay higher prices, TSMC will undoubtedly adopt High-NA EUV equipment.

Yang noted that TSMC is taking a cautious approach to adopting High-NA EUV equipment, likely after thoroughly considering its necessity. If Intel makes significant purchases of High-NA EUV equipment, its future capacity utilization will be worth observing, as it might face the risk of increased losses.

Currently, both TSMC and Samsung utilize EUV equipment for manufacturing, covering TSMC’s 7nm, 5nm, and 3nm processes and Samsung’s EUV Line (7nm, 5nm, and 4nm) located in Hwaseong, Korea, along with the 3nm GAA process.

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(Photo credit: ASML)

According to sources cited by a report from Economic Daily News, TSMC’s A16 advanced process node might not necessarily require ASML’s latest advanced chip manufacturing equipment, the High Numerical Aperture Extreme Ultraviolet Lithography (High-NA EUV), due to its expensive price.

Per a report from Bloomberg, during a technical symposium in Amsterdam on May 14th, TSMC’s Senior Vice President of Business Development and Co-Chief Operating Officer, Dr. Kevin Zhang, remarked that while he appreciates the capabilities of High-NA EUV, he finds its price tag to be unlikeable.

As per the same report from Bloomberg, ASML’s new machine is capable of imprinting semiconductors with lines measuring just 8 nanometers in thickness — 1.7 times smaller than the previous generation.

In terms of pricing, this EUV machine is reportedly priced at EUR 350 million (roughly USD 380 million), with a weight equivalent to two Airbus A320 passenger planes, according to Bloomberg.

Dr. Kevin Zhang stated that TSMC’s planned A16 node (scheduled for volume production slightly later in 2026) may not necessarily require the use of ASML’s High NA EUV equipment. Instead, TSMC could continue to rely on its existing, older EUV equipment. “I think at this point, our existing EUV capability should be able to support that,” he expressed.

He further mentioned that the decision to adopt the new ASML technology would depend on where it offers the most economic benefits and the technical balance they can achieve. He declined to disclose when TSMC might purchase High-NA EUV from ASML.

On the other hand, Intel has confirmed in mid-April that it has received and assembled the industry’s first High-NA EUV lithography system, which is expected to be able to print features up to 1.7x smaller than existing EUV tools. This will enable 2D feature scaling, resulting in up to 2.9x more density.

Currently, both TSMC and Samsung utilize EUV equipment for manufacturing, covering TSMC’s 7nm, 5nm, and 3nm processes and Samsung’s EUV Line (7nm, 5nm, and 4nm) located in Hwaseong, Korea, along with the 3nm GAA process.

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(Photo credit: ASML)

As the competition in advanced semiconductor chip manufacturing industry heats up, EUV lithography machine has been sought after by the market, attracting great attention across the industry.

Currently, Intel has taken the lead by purchasing ASML’s High-NA EUV lithography equipment and announced the completion of assembly recently. Samsung is also stepping up its efforts by partnering with Zeiss, a supplier of components for ASML’s EUV lithography machine, to deepen cooperation in the EUV field. At the same time, rumor has surfaced about the delivery of ASML’s second High-NA EUV lithography machine, though the buyer remains undisclosed.

• Samsung and Zeiss to Deepen EUV-Related Cooperation

According to South Korean media The Korea Herald report, Jay Y. Lee, the vice chairman of Samsung Electronics, recently met with Karl Lamprecht, President and CEO of Zeiss, along with other company executives in Germany.

During the meeting, both parties agreed to expand cooperation in EUV technology and cutting-edge semiconductor equipment development to enhance their competitiveness in the foundry and memory chip sectors. Through this collaboration, Samsung aims to advance next-generation semiconductor technology, optimize chip manufacturing processes, and improve the yield of advanced chips.

Zeiss also plans to invest KRW 48 billion by 2026 to establish a research and development center in South Korea as a way to strengthen strategic cooperation with South Korean companies including Samsung.

As a developer of optical and optoelectronic solutions, Zeiss serves as the exclusive supplier of components for ASML’s EUV lithography machines, with each machine containing over 30,000 components made by Zeiss. Zeiss holds more than 2,000 core patents about EUV technology, and its expertise can make a significant difference in the production of high-performance advanced chips.

In the future, Samsung Electronics and Zeiss will further expand their cooperation in EUV technology and related fields of advanced semiconductor equipment.

• ASML has Delivered the Second High NA EUV Lithography Machine?

Recently, Intel announced it has completed installation of the ASML High NA EUV lithography machine, which has now entered the optical system calibration phase. This represents the first High NA EUV lithography machine produced by ASML, valued at up to EUR 350 million. Intel plans to use this equipment to produce advanced process chips below 1.8nm.

In addition to Intel, companies such as TSMC, Samsung, and Micron have also placed orders for the High NA EUV lithography machine from ASML. ASML’s financial report for the first quarter of this year revealed a total of EUR 3.6 billion order intakes, with EURO 656 million from EUV lithography machine orders. ASML recently delivered its second equipment without revelation of the buyer.

The two High NA EUV lithography machines are insufficient to meet the market demand for advanced process chips. Therefore, ASML plans to manufacture more high-end lithography equipment in the future to address the continuously growing market demand.

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(Photo credit: ASML)