TSMC to Receive High NA EUV Machine by Year-End

TSMC, the world's largest semiconductor foundry, is set to receive ASML's most advanced High NA EUV (High Numerical Aperture Extreme Ultraviolet) lithography machine by the end of this year, according to Nikkei Asia. Each unit is priced at over $350 million and enables the production of chips with finer circuit widths.

TSMC's Senior Vice President of Business Development, Xieqiang Zhang, previously expressed admiration for the capabilities of High NA EUV technology but noted the high cost as a significant concern. TSMC is confident that its current EUV technology will sustain chip production through the end of 2026, including the upcoming A16 process, which will rely on standard EUV lithography machines for mass production.

The A16 process is projected to incorporate TSMC's Super PowerRail architecture and nanosheet transistors, with mass production planned for 2026. This process is expected to achieve an 8-10% speed increase at the same Vdd (operating voltage), a 15-20% reduction in power consumption at the same speed, and a 1.10x increase in chip density, supporting data center applications.

Reports indicate that TSMC is evaluating the use of High NA EUV lithography for the production of its A10 process, which would be approximately two generations ahead of the 2nm technology slated for late 2025. This timeline suggests large-scale deployment of High NA EUV machines might only occur after 2030.

Unlike TSMC's cautious approach, Intel has taken a more aggressive stance to leverage High NA EUV technology to expedite advanced node development. Earlier this year, Intel's Oregon facility received the world’s first High NA EUV lithography machine, and two such machines have been installed to date. Intel plans to use them for testing its Intel 18A process, laying the groundwork for future 14A mass production.

Samsung, another leading player, is also expected to install its first High NA EUV lithography machine in the first quarter of 2025.

However, acquiring High NA EUV machines does not automatically translate to seamless entry into sub-angstrom manufacturing. Major chip manufacturers are investing heavily in advanced packaging technologies to integrate more components into a single package, boosting chip performance. While High NA EUV offers higher resolution than current standard EUV, additional design adaptations are essential to create more advanced chips.

Moreover, the High NA EUV machines are significantly larger and taller than standard EUV units, necessitating new infrastructure in advanced fabs to accommodate them.

Currently, Intel, Samsung, and TSMC are the only three companies employing ASML's High NA EUV technology for next-generation chip development. ASML has disclosed that it has received orders for only 10 to 20 units of these multi-million-dollar machines. Due to limited demand, the high costs associated with High NA EUV machines are expected to persist, potentially impacting the development of future generations of lithography equipment.