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TSMC Exec says ASML €350 million lithography tool too expensive, no purchaseplanned

TSMC's Co-COO Zhang Xiaoqiang announced that the company will not purchase ASML's €350 million High-NA EUV lithography machines, finding them too expensive despite their advanced capabilities. TSMC believes its current EUV systems are adequate, a decision that may influence ASML's future production plans and targets.

Key points

  • TSMC's Co-COO Zhang Xiaoqiang declares no plans to purchase ASML's lithography tools.
  • The High-NA EUV machines are priced over €350 million each.
  • Although these machines enhance chip precision to below 1.4nm, TSMC finds existing technology sufficient.
  • TSMC's decision could affect ASML's production expansion in 2027-2028.
  • This choice impacts ASML's aim for €60 billion in revenue by 2030.

Why it matters

  • The decision aligns with ongoing trends in semiconductor manufacturing focusing on cost-efficiency.
  • Similar concerns over capital expenditures were observed in tech sectors during the global chip shortage in 2020-2021.
  • ASML's dependence on TSMC highlights the interconnections between major players in chip manufacturing.

TSMC's refusal to invest in costly lithography tools underlines a strategic choice that may shape the semiconductor landscape and ASML's future financial outlook.