According to a report from TechNews, citing a report from Nikkei, TSMC is set to receive ASML’s most advanced High NA EUV lithography machines before the end of the year.

The machine, known as high numerical aperture extreme ultraviolet (High NA EUV) lithography equipment, costs over USD 350 million each and allows semiconductor manufacturers to produce wafers with smaller transistor line widths, according to Nikkei.

The report indicated that TSMC is likely to use the machines for its angstrom 10 (A10)  technology, expected to enter mass production sometime after 2030. The A10 technology is about two generations ahead of the 2-nm chips that TSMC plans to mass produce by the end of 2025.

The report from TechNews noted that acquiring High NA EUV lithography equipment does not guarantee a smooth entry into the “angstrom” (A10) domain. Chip manufacturers must still make design adjustments after acquiring the equipment.

According to the report from Nikkei, TSMC is not the first to acquire ASML’s latest and most advanced equipment—Intel was the first to adopt it. Intel’s Oregon fab received the first set of High NA EUV machines in the first quarter of this year, followed by a second set in the second quarter.

According to another report from TechNews, the CEO of ASML has announced that Intel’s second High-NA EUV system has been completely assembled in October.

On the other hand, according to Sedaily, Samsung is expected to begin bringing in its first High-NA EUV equipment between the end of this year and the first quarter of next year. However, the company is said to reduce the number of next-generation High NA EUV lithography machines it plans to introduce, according to a report from South Korean media outlet BusinessKorea citing sources.

Intel, Samsung, and TSMC are currently the only clients of ASML’s High NA EUV machines. Meanwhile, due to U.S. sanctions preventing Chinese companies from accessing ASML’s EUV products and services, ASML has lost the Chinese market. However, the company stated that it has still received orders for 10 to 20 units, as the report from TechNews indicated.

According to the report from TechNews, as ASML monopolizes the advanced EUV lithography market—essential for manufacturing next-generation semiconductors—the U.S. has started investing in EUV research to revive its domestic semiconductor supply chain. However, this effort may take years, or even decades, to bear fruit.

According to a report from eeNews, recently, the U.S. government is funding a billion-dollar research center focused on next-generation EUV process technology, marking the first CHIPS for America R&D flagship facility. This initiative is designed to advance domestic capabilities in semiconductor technology.

Read more

• [News] Samsung Reportedly Reduces Procurement of ASML’s Next-Generation EUV Lithography Equipment
• [News] Intel Completes Assembly of Second High-NA EUV System, ASML Confirms

(Photo credit: TSMC)

As ASML accidentally released its financial report nearly a day ahead of its schedule due to a “technical error,” the Dutch semiconductor giant’s Q3 performance and its forecast for 2025 have also startled all by reporting orders at half of what the market predicted, raising concerns on the lackluster outlook of semiconductors despite strong demand for AI-related chips, according to the reports by Bloomberg and Reuters.

The result is regarded as a warning signal, as it might imply the weak performance for ASML’s major clients, such as tech heavyweights Intel and Samsung, the reports note. TSMC, another of ASML’s client, will release its Q3 earnings results tomorrow.

ASML shares plummeted 16%, marking their largest drop since June, 1998, the reports by Reuters and Bloomberg state.

Lackluster Q3 Bookings and 2025 Outlook as Customers Remain Cautious

ASML, known for producing the world’s most advanced chipmaking equipment such as High-NA EUV machines, posted a net profit of 2.1 billion euros on revenue of 7.5 billion euros (USD 8.2 billion) in Q3. However, it reported third-quarter bookings of €2.6 billion (USD 2.8 billion), falling short of the average estimate of €5.39 billion from analysts surveyed, according to Bloomberg.

According to its press release, ASML revised its 2025 total net sales forecast to a range of €30 billion to €35 billion, down from its previous estimate of up to €40 billion.

For next year, the company anticipates a gross margin between 51% and 53%, lower than the prior projection of 54% to 56%, mainly due to delays in the rollout of its high-end extreme ultraviolet machines.

According to a statement by ASML Chief Executive Officer Christophe Fouquet cited by the reports, the recovery of the semiconductor industry is progressing more slowly than anticipated, and this cautious outlook is expected to persist into 2025, leading to more conservative behavior from customers.

Key Clients in Trouble while Chip War Remains an Issue

It is worth noting that according to Reuters, ASML indicates that despite strong demand for AI-related chips, other segments of the semiconductor market are facing prolonged weakness. This has caused logic chip manufacturers to postpone orders, while memory chip companies are only planning “limited” expansions in new capacity.

According to a report from South Korean media outlet Business Korea, Samsung is said to mull to reduce its procurement of ASML’s next-generation EUV lithography equipment. Reportedly, Samsung initially planned to purchase more than three units of the next versions, EXE:5200, EXE:5400, and EXE:5600, over the next ten years. However, the company has now decided to introduce only the EXE:5200.

On the other hand, another struggling semiconductor giant, Intel, has secured five units of High-NA EUV machines from ASML to ensure its progress with the 2nm node, according to a previous report by TheElec. However, as the company has been doing its best to reduce expenses through restructuring and delaying overseas expansion, whether it will stick to the original purchase plan remains to be seen.

The report by Bloomberg also warns that while China was ASML’s largest market, the demand from China may slow in the coming periods, as Washington’s ongoing chip war with Beijing remains a persistent long-term concern for ASML.

Read more

• [News] Intel Completes Assembly of Second High-NA EUV System, ASML Confirms
• [News] Samsung Reportedly Reduces Procurement of ASML’s Next-Generation EUV Lithography Equipment

(Photo credit: ASML)

According to a report from TechNews, Christophe Fouquet, the CEO of ASML, announced that Intel’s second high-NA EUV system has been completely assembled.

Christophe Fouquet stated that the High-NA EUV machine is less likely to face delivery delays compared to the current standard EUV machines because it can be assembled directly at the customer’s facility, eliminating the need for disassembly and reassembly. This approach saves both time and costs for ASML and its customers, helping to expedite delivery, the report noted.

Mark Phillips, the Director of Lithography Hardware at Intel, announced that the company has successfully completed the installation of two High-NA EUV systems at its Portland facility.

Moreover, Mark Phillips highlighted that the improvements offered by High-NA EUV machines surpass expectations when compared to standard EUV machines.

Mark Phillips also noted that the installation of the second High-NA EUV system was completed even faster than the first. He stated that all necessary infrastructure for the High-NA EUV system is in place, and inspections of the masks used for High-NA EUV have begun as scheduled. As a result, Intel is well-positioned to move into production with minimal additional effort.

Additionally, Mark Phillips was asked about the issue of CAR (Chemically Amplified Resist) versus metal oxide resists. According to the report by TechNews, he stated that while CAR is currently sufficient, there may be a need for metal oxide photoresists at some point in the future. Intel aims to have its Intel 14A process in mass production by 2026-2027, at which point further advancements in the node will be made.

Intel’s early adoption of ASML’s High-NA EUV equipment is seen by many as a crucial move for Intel to reclaim its technological leadership.

Regarding other semiconductor giants, ASML previously confirmed that it will deliver its latest High-NA EUV systems to TSMC by the end of this year. According to a report from the Economic Daily News, it is rumored that TSMC’s first High-NA EUV equipment arrived in September, which will support the company in advancing its process technology.

On the other hand, while Samsung has also decided to purchase ASML’s High-NA EUV equipment, a report from South Korean media outlet BusinessKorea suggests that the company is planning to reduce its procurement of ASML’s next-generation EUV lithography equipment, after Vice Chairman Jun Young-hyun was appointed as the new head of the DS (Device Solutions) division and reviewed ongoing projects and investments.

Read more

• [News] TSMC Strengthens Its Advanced Process with Next-Generation EUV Equipment Reportedly Arriving This Month
• [News] Samsung Reportedly Reduces Procurement of ASML’s Next-Generation EUV Lithography Equipment

(Photo credit: ASML)

According to a report by the Economic Daily News, TSMC’s first high numerical aperture extreme ultraviolet lithography (High-NA EUV) equipment will arrive this month, aiding the company in progressing its advanced process technology.

Regarding these rumors, ASML stated on September 9 that it does not comment on individual customers. TSMC has also declined to respond to market speculation.

The report has cited industry rumors, pointing out that TSMC’s first High-NA EUV machine is expected to be moved to its Global R&D Center for research purposes, addressing the development needs of future advanced processes like A14.

As for pricing, it’s reportedly rumored that TSMC President C.C. Wei personally negotiated a favorable deal, reducing the overall price by nearly 20% through a combination of purchasing the new equipment while also selling older models.

The same report further suggests that the High-NA EUV is priced at over EUR 400 million. Due to the inability to disassemble the optical lens components, the equipment is taller than a conference room and significantly longer than the previous generation. 

The report, quoting statistics, claiming that TSMC is currently the world’s largest holder of extreme ultraviolet (EUV) lithography systems, estimated to account for 65% of the global EUV wafer equipment output. It was also said to be the first manufacturer to introduce EUV equipment into the 7nm process.

ASML has already received orders for next-generation products from all of its EUV equipment customers.

Greet Storms, ASML’s Vice President of High NA EUV Product Management, recently stated that ASML is advancing new technologies and has gained the support of all EUV customers during the R&D phase.

She addressed that, these customers, who have also placed orders for High-NA equipment, are expected to move toward mass production by 2026, although the timeline will ultimately depend on customer process costs and other factors.

ASML had previously confirmed that it will deliver its latest High-NA EUV to TSMC by the end of this year. ASML emphasized that the next-generation EUV equipment began shipping at the end of last year, with a capacity to expose over 185 wafers per hour.

This will support mass production of sub-2nm logic chips and memories with similar transistor densities.

Read more

• [News] ASML’s Second High-NA Equipment to be Installed in Intel’s Oregon Fab Soon
• [News] Price for ASML’s Hyper-NA EUV Rumored to Double, Causing TSMC, Samsung and Intel to Hesitate

(Photo credit: ASML)

TSMC, along with research teams like imec, continues to push the boundaries in pursuit of optimal solutions for achieving high bandwidth and low power consumption on the same chip area.

As per a report from Commercial Times, Imec has even mapped out a blueprint for the Angstrom era, with the potential to surpass the A1 threshold by 2040. They have also revealed that the A14 node will require the adoption of High-NA EUV (Extreme Ultraviolet Lithography with High Numerical Aperture), reportedly hinting that TSMC’s adoption of High-NA EUV is inevitable.

Per another report from the Economic Daily News, Luc Van den hove, President and CEO of imec, presented imec’s latest technological roadmap at the ITF Taiwan 2024 forum. He outlined plans to advance to the 2nm node by 2025, enter the angstrom era with the A14 process by 2027, and reach the A2 process by 2037.

He also explained the changes in imec’s transistor architecture, stating that the 2nm process will transition from FinFET to Nanosheet architecture, while the A7 process will further shift to complementary FET (CFET) architecture.

This, per Commercial Times’ report, hints that TSMC’s adoption is only a matter of time. TSMC emphasized that whenever new structures and tools, such as High-NA EUV, emerge, they carefully evaluate their maturity, costs, schedules, and feasibility.

Min Cao, Vice President of R&D at TSMC, pointed out that the performance, power, and area (PPA) gains from field-effect transistors (FETs) are diminishing. To sustain high growth, TSMC does not rule out the development of emerging materials.

He further expressed optimism about the significant growth wave driven by artificial intelligence, noting that the complexity of AI models and computational power is expected to grow exponentially.

Min Cao noted that the automotive sector will soon adopt 3nm and 5nm chips, and TSMC will be able to support the advancement of autonomous driving. He estimated that the semiconductor market will reach a scale of USD 1 trillion by 2030.

Read more

• [News] TSMC’s Expansion beyond 2nm Taking Shape? Angstrom-Class Fabs Possibly in Southern Taiwan
• [News] Decipher TSMC’s Calm Take on High-NA EUV Lithography Machines: Who May Have the Last Laugh in the Angstrom Era?

(Photo credit: TSMC)