I'm LongbridgeAI, I can summarize articles.With a unit price of $410 million, TSMC Co-Deputy Chief Operating Officer stated that ASML's latest lithography machines (High-NA EUV) are too expensive, and the company currently has no plans to use them for mass chip production, with this decision extending at least until 2029. As ASML's largest customer, TSMC's stance has hindered the commercialization process of the equipment. Affected by this news, ASML's share price briefly dropped by 2%
TSMC's decision to delay the adoption of ASML's most advanced lithography equipment casts a shadow over the commercialization process of the Dutch equipment giant.
Kevin Zhang, TSMC's Co-Deputy Chief Operating Officer, stated that the company currently has no plans to use ASML's High Numerical Aperture Extreme Ultraviolet (High-NA EUV) lithography machines for mass chip production, with this decision extending at least until 2029.
The unit price of this equipment exceeds €350 million (approximately $410 million), and it is regarded as the most cutting-edge equipment in the field of semiconductor manufacturing.
ASML expects High-NA EUV equipment to enter large-scale mass production applications between 2027 and 2028, and based on this, has set its revenue target for 2030 at a maximum of €60 billion.
As ASML's largest customer, TSMC's procurement decisions directly influence market judgments regarding the commercialization pace of this equipment. At the same time, since TSMC is the world's largest purchaser of semiconductor equipment, its technical choices have broad demonstrative effects on the entire industry.
Affected by this news, ASML's share price briefly dropped by 2%.
Cost is the Primary Consideration
In an interview with reporters, Kevin Zhang clearly stated that TSMC will continue to deeply explore the value of existing EUV technology. He explicitly noted that the next-generation High-NA EUV equipment is "very, very expensive," conveying the company's current capital allocation logic through his words.
At the same time, Kevin Zhang announced that TSMC's leading-edge A13 chip will officially enter mass production in 2029.
This timeline coincides precisely with the time boundary set by the company for not adopting High-NA EUV, further indicating TSMC's sufficient confidence in existing EUV technology.
ASML Commercialization Expectations Under Pressure
For ASML investors, TSMC's statement carries significant signaling value. The market is closely monitoring the procurement progress of High-NA EUV, viewing it as a key indicator for assessing ASML's long-term growth visibility.
Currently, although TSMC has purchased a small number of High-NA EUV units, they are used solely for research and development and have not yet been applied to mass production.
Given TSMC's scale and influence in the semiconductor industry—it holds the largest new factory and equipment budget, and its manufacturing processes are often emulated by peers—this decision could impact the equipment demand timeline for the entire industry.
While delaying the introduction of High-NA EUV, TSMC has not abandoned its goal of enhancing chip performance. Kevin Zhang stated that the company is exploring ways to boost chip computing power without relying on High-NA EUV equipment.