ASMU

$Taiwan Semiconductor(TSM.US)

Context: Taiwan Semiconductor Manufacturing Company and ASML announced a collaborative initiative to lead the semiconductor industry’s transition to a larger-format Extreme Ultraviolet (EUV) lithography photomask. While High NA EUV will be adopted for production using the current, 6-inch masks, the transition to larger, 12-inch masks is expected to further increase fab productivity, lower chipmaking costs and remove stitching constraints, benefiting the entire semiconductor industry. It will enable advanced chip manufacturers to fully leverage the advantages of High NA EUV, making future generations of leading-edge chips more cost-effective.

My Trade: Dollar cost averaging into one of the strongest stock in the Taiwan market. Collaboration with the Monopoly giant ASML further strengthens TSM's position in the sector.

Takeaway: TSMC intends to use ASML’s High NA technology in high-volume manufacturing for advanced nodes starting in 2030. As technology nodes advance, TSMC expects the number of layers requiring High NA EUV will rise, driven primarily by the increasingly complex transistor architectures required for AI applications. @Captain's Treasure