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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• [News] How Costly is the High-NA EUV? TSMC Reportedly Shocked, Considering Not Using the Equipment in its A16 Node
• [News] Intel Secures First Batch of High-NA EUV Equipment from ASML, Ahead of Samsung and SK Hynix

(Photo credit: ASML)

According to a report from global media outlet Wccftech, China’s largest foundry, SMIC, is rumored to produce 5-nanometer chips for Huawei this year, without the need for extreme ultraviolet (EUV) lithography machines manufactured by Dutch company ASML.

As per a report by Businesskorea, SMIC seems to be able to use old deep ultraviolet (DUV) lithography machines purchased before the sanctions were implemented to manufacture 5-nanometer chips. However, this would incur higher costs and could also affect yields.

Previously reported by the Financial Times, industry sources have indicated that SMIC’s prices for 5-nanometer and 7-nanometer processes are 40% to 50% higher than TSMC’s, and the yield less than one-third of TSMC’s. Later, it was estimated that SMIC’s 5nm chip prices would be up to 50 percent more expensive than TSMC’s on the same lithography, meaning that Huawei would face a tough time selling its Mate 70 series to consumers with a decent margin if it attempts to absorb a majority of those component costs.

Huawei was previously said to be working closely with its local foundry partner to introduce a new Kirin SoC that will be found in the upcoming Mate 70 series, scheduled to be released in October, with SMIC’s 5nm process has been said completed and is ready to mass produce the first batch of wafer.

This means that if Huawei attempts to absorb most of these costs, it will face the challenge of insufficient profit margins when selling the Mate 70 series to consumers. The tech giant may attract customers by promoting its in-house HarmonyOS Next, which is reportedly set to debut with the Mate 70 series. The model is said to be equipped with better efficiency in memory management compared to Google’s Android platform, according to Wccftech.

Meanwhile, Intel has recently secured its supply of the new High-NA EUV (high-numerical aperture extreme ultraviolet) lithography equipment from ASML, which the semiconductor heavyweight will allegedly use on its 18A (1.8nm) and 14A (1.4nm) nodes, according to a report from TheElec.

On the other hand, 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.

Read more

• [News] How Costly is the High-NA EUV? TSMC Reportedly Shocked, Considering Not Using the Equipment in its A16 Node
• [News] Intel Secures First Batch of High-NA EUV Equipment from ASML, Ahead of Samsung and SK Hynix

(Photo credit: SMIC)

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.

Read more

• [News] Intel Secures First Batch of High-NA EUV Equipment from ASML, Ahead of Samsung and SK Hynix
• [News] EUV as a Strategic Asset in the Most Advanced Processes: Progress in Intel/TSMC/Samsung’s Adoptions

(Photo credit: ASML)

As per a report from Reuters, US Commerce Secretary Raimondo stated on May 8th that the need for the government to take the threat posed by China-produced connected cars more seriously, suggesting potential “extreme action” to restrict or prohibit the import of such vehicles to prevent the leakage of data belonging to US citizens.

Regarding the national security risk investigation launched by Washington earlier this year into Chinese automobiles, Raimondo expressed concerns that Chinese connected vehicles could collect a vast amount of data about Americans, including who they are, what they say in their car, where they go to, as well as their patterns of driving.

Per Reuters, the US administration initiated a review in February this year on whether the import of Chinese automobiles poses a national security risk. Raimondo stated on May 8th that the Department of Commerce is reviewing the public’s comments on this review submitted before April 30th.

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• [News] U.S. Imposes Further Sanctions, Revoking Intel and Qualcomm’s License to Supply Chips to Huawei
• [News] US Considers Sanctioning Huawei-Linked Chinese Chip Network, Huawei-Related Enterprises Blacklisted

(Photo credit: Pixabay)

According to a report from Bloomberg, Intel, the chip giant, expects its revenue for the current quarter to be impacted after the US government revoked chip sales licenses to Huawei. Intel estimates that its revenue for the second quarter of this year will be below USD 13 billion, though still within the previously projected range of USD 12.5 billion to 13.5 billion. The company’s full-year financial forecast remains unchanged, with both revenue and profits expected to grow.

The U.S. government has reportedly revoked the licenses of Intel and Qualcomm to supply semiconductor chips used in laptops and handsets to Huawei. According to Reuters citing sources, some companies received notices on May 7th, and the revocation of the licenses took immediate effect.

Huawei unveiled its first AI notebook last month, which is powered by Intel chips. This has sparked dissatisfaction among some US lawmakers, who have called for the revocation of related export licenses.

In 2019, the US government added Huawei to the “Entity List,” prohibiting suppliers from providing goods to Huawei without an export license. However, US suppliers such as Intel and Qualcomm were granted permission to continue supplying certain chips to Huawei, including central processors for laptops and 4G smartphone chips.

Amid the escalating US-China tech war, these export licenses have allowed some companies to maintain stable revenue from the Chinese market.

Huawei has become the epicenter of the US-China trade conflict, with the US restricting Huawei’s access to Qualcomm’s latest 5G chips and implementing comprehensive controls on NVIDIA’s AI chips, limiting Huawei’s business growth. On the other hand, China has initiated countermeasures, demanding the telecom industry to cease using foreign chips by 2027.

The US Republican Representative Elise Stefanik believes that revoking the licenses will strengthen U.S. national security, protect U.S. intellectual property rights, and thus weaken the technological advancement capabilities of communist China.

Akash Palkhiwala, Qualcomm’s CFO, stated in early May that as the Chinese telecom industry shifts towards 5G development and stops procuring Qualcomm’s approved 4G chips, the company anticipates earning no revenue from Huawei by 2025.

Read more

• [News] U.S. Imposes Further Sanctions, Revoking Intel and Qualcomm’s License to Supply Chips to Huawei
• [News] U.S. Department of Commerce Claims Huawei Chips Not as Advanced, Lag Behind U.S. Chips by Several Years

(Photo credit: iStock)