TSMC's Intel IMS Acquisition: EUV & 2nm Race
Taiwan Semiconductor Manufacturing Company (TSMC) has recently made a significant strategic move by acquiring a 10% ownership stake in Intel's IMS Division, also known as AMEUS Electron Beam Technology. This acquisition, valued at approximately $4.328 billion, is slated for finalization in the fourth quarter of this year. The primary objective of this transaction is to foster groundbreaking advancements in Extreme Ultraviolet (EUV) technology. Industry experts have responded positively to this development, while media outlets in South Korea anticipate heightened competition in the fiercely contested 2-nanometer semiconductor manufacturing arena.
Intriguingly, some insiders assert that the absence of IMS equipment could render ASML's EUV exposure machines significantly less effective. TSMC's collaboration with Intel is widely seen as a strategic move, positioning both companies to potentially leverage ASML's forthcoming High-NA EUV lithography equipment. This collaboration gains prominence as the significance of exposure equipment in sub-7-nanometer processes continues to rise, prompting TSMC to deepen its existing technical partnerships.
Prominent analyst Guo Ming-Chi from Tianfeng International Securities believes that TSMC's investments in ARM and IMS primarily serve the purpose of enhancing vertical integration capabilities. This, in turn, ensures a seamless transition from the existing 3-nanometer FinFET technology to the advanced 2-nanometer GAA technology. The investment in IMS specifically bolsters the critical aspect of equipment development and supply, catering to the growing demands of commercializing 2-nanometer technology.
Intel initially made its foray into IMS in 2009, eventually acquiring full ownership in 2016. In a noteworthy development this year, Intel divested 20% of its stake to Bain Capital in June.
Meanwhile, Samsung, a formidable competitor to TSMC, had previously acquired a 3% stake in ASML back in 2012, investing a staggering 7 trillion KRW, with the aim of fostering collaboration in future exposure machine development. However, by 2016, Samsung had opted to sell half of its ASML shares, citing the need to recoup its investment. As of the end of the second quarter this year, Samsung retained only a 0.7% stake.
Notwithstanding these developments, industry experts remain confident in the robustness of Samsung's collaboration with ASML. Insider sources reveal that Samsung is gearing up to ensure the smooth production of the next-generation High-NA EUV lithography equipment. A prototype is expected to be unveiled later this year, with full-scale production scheduled for the following year.
This report anticipates that SK Hynix, TSMC, and Intel are poised to join the competition for next-generation exposure equipment. Simultaneously, the race in the 2-nanometer semiconductor manufacturing process continues to intensify. TSMC's announcement last year regarding its readiness to commence trials of 2-nanometer products underscores its commitment to maintaining leadership in this highly competitive sector. Samsung, on the other hand, is strategically leveraging GAAFET technology to gain ground. With Intel and Rapidus also entering the fray in the 2-nanometer space, the competition in advanced semiconductor processes is set to reach new levels of intensity.
