TSMC Still Evaluating Use of High-NA EUV for Future Nodes

TSMC, the world's largest semiconductor foundry, is still evaluating the appropriate time to adopt ASML's next-generation High Numerical Aperture (High-NA) extreme ultraviolet (EUV) lithography systems for its upcoming process nodes.

These advanced lithography tools, priced at nearly $400 million each, promise significant gains in speed and precision. However, the steep cost—nearly double that of current-generation systems—has led chipmakers to carefully assess when the benefits justify the investment. High-NA EUV machines are currently the most expensive single tools in any advanced semiconductor fab.

When asked whether TSMC plans to utilize High-NA EUV for its upcoming A14 (1.4nm) or future enhanced nodes, Kevin Zhang, TSMC's Senior Vice President of Business Development, stated that the company has not yet found a compelling reason to make the shift.

"For the A14 enhanced node, even without High-NA, the performance remains highly impressive," said Zhang. "Our engineering teams are focused on extending the capabilities of current Low-NA EUV systems. As long as we continue finding ways to improve, we don't feel the urgency to introduce High-NA technology."

Zhang had previously mentioned that TSMC does not plan to adopt High-NA EUV for its A16 (1.6nm) node either, noting concerns about its high cost.

Meanwhile, Intel plans to introduce High-NA EUV lithography in its future Intel 14A process, aiming to revitalize its advanced chip manufacturing strategy and compete more aggressively in cutting-edge process technologies. However, Intel has also confirmed that customers will still have access to more established and mature process options.

To date, ASML has shipped five units of its High-NA EUV lithography tool—each weighing approximately 180 tons and roughly the size of a double-decker bus—to three global semiconductor leaders: Intel, TSMC, and Samsung.

Christophe Fouquet, ASML's President and CEO, indicated that mass production readiness testing for High-NA tools is expected between 2026 and 2027. Customers will likely begin integrating the technology into their most advanced process nodes after this evaluation period.

Fouquet also emphasized that demand driven by AI remains strong. "AI has been a primary growth driver for the semiconductor industry in recent quarters," he said. "We have already seen demand stabilizing for 2025 and part of 2026. Based on our conversations with customers, we expect both 2025 and 2026 to be growth years."

However, recent tariff announcements have introduced greater macroeconomic uncertainty. While the full impact remains difficult to quantify, ASML projects its full-year gross margin to remain between 51% and 53%. Looking ahead, the company forecasts annual net sales of €44 billion to €60 billion by 2030, with gross margins ranging from 56% to 60%.