Transitioning to cutting-edge lithography requires highly advanced EUV machines that will allow TSMC to rapidly manufacture 2nm wafers with a minimum number of ‘bad’ batches. The company started accepting orders for the aforementioned manufacturing process earlier this year, with MediaTek announcing that it will commence tape-out of its first 2nm chipset by Q4 2025. However, going beyond this limit and entering the sub-2nm realm will require some serious equipment, with ASML’s high numerical aperture, also known as NA, expected to complete these complicated jobs. Unfortunately, a report states that due to the high price tag, TSMC is unsure of placing orders for these.
The most expensive EUV machines utilized by TSMC cost nearly half of ASML’s NA hardware, bringing a price concern to the table
The 2nm process will eventually enter a maturity stage in a couple of years, and TSMC has reportedly set its sights on the 1.4nm node, which offers up to a 30 percent power reduction. Mass production is estimated to kick off in 2028, with the technology also called A14 or 14-Angstrom. To seamlessly manufacture wafers on this lithography will likely require ‘state of the art’ machinery, which is where ASML’s High-NA equipment comes into play, but according to Reuters, TSMC is currently undecided on whether to make the transition.
Senior Vice President of the semiconductor behemoth, Kevin Zhang, talked about TSMC’s advanced nodes and whether it was compulsory to spend $400 million on ASML’s high-end machines. The executive stated there is not a compelling enough reason to make the upgrade, with the absurd pricing probably being a barrier. However, TSMC has leveraged its existing EUV equipment for its current-generation process, churning out more life from its existing machines.
Until this hardware is no longer useful for the more advanced lithography, the company might not entertain a purchase. Then again, ASML has other customers waiting to obtain an edge against its chipmaking rival. The Dutch manufacturer has already shipped five units of its High-NA machines to various customers, one of which is Samsung. The latter was previously rumored to have formed a team dedicated to 1nm fabrication, with a production timeline set for 2029.
Whether TSMC finally gives in and jumps towards procuring one of these High-NA machines is anyone’s guess, but if it has managed to maintain a comprehensive lead against its competitors for years, it might be doing something right.
News Source: Reuters
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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