Taiwan Semiconductor Manufacturing Co. (TSMC) will not adopt ASML’s latest High-NA extreme ultraviolet (EUV) lithography machines for its upcoming A13 node. Co-Chief Operating Officer Kevin Zhang confirmed the advanced technology is not required for the next generation of AI and augmented reality chips.
ASML remains the sole producer of these highly complex and expensive lithography tools. TSMC intends to focus on cost-effectiveness by maximizing its existing manufacturing equipment instead of adopting the new hardware.
Shares of the Dutch equipment manufacturer ASML dropped significantly following the announcement. The move signals a potential slowdown in the adoption of the industry's most advanced manufacturing technology.
TSMC plans to expand its advanced packaging capabilities in the United States. This strategic shift raises questions regarding the near-term return on investment for next-generation semiconductor equipment.