TSMC: A16 Chips Possible Without ASML's New Lithography

A senior executive at TSMC announced on Tuesday that the company might not necessarily adopt ASML's next-generation High-NA EUV (High Numerical Aperture Extreme Ultraviolet) lithography machines for its forthcoming A16 chip manufacturing technology. This technology is currently in development and is scheduled for release in 2027.

High-NA EUV lithography machines are anticipated to enable a significant reduction in chip design sizes by up to two-thirds. However, chip manufacturers must balance these advantages against the higher costs and assess whether ASML's existing technology remains reliable and sufficient.

Speaking at a conference in Amsterdam, Kevin Zhang of TSMC noted that while the A16 wafer fab could potentially be designed to incorporate this new technology, a definitive decision has not been made. TSMC remains ASML’s largest customer for conventional EUV lithography machines.

"I appreciate the potential of this technology, but I’m not keen on its price tag," Zhang remarked, indicating that TSMC's A16 node will succeed the 2-nanometer production node, which is expected to enter mass production in 2025.

He added, "The real impact of High-NA EUV will depend on achieving the best balance between economic and technical benefits."

Currently, each High-NA EUV machine is expected to cost over 350 million euros ($378 million), in contrast to the 200 million euros for ASML's conventional EUV machines.

Last month, Intel announced it had become the first company to assemble ASML's new High-NA EUV lithography tools, marking a significant step in its efforts to outpace competitors.