TSMC has opted out of purchasing ASML's new flagship High-NA EUV lithography machines until at least 2029, according to a Bloomberg report. The decision, driven by the machine's hefty $410 million price tag, highlights a growing tension between cutting-edge manufacturing costs and the economics of wafer foundry.
TSMC executives described the High-NA EUV as "very, very expensive." The company, flush with AI chip orders, is not short on cash. Instead, it appears to be betting that the performance gains from the next-gen equipment do not yet justify the premium over existing EUV tools, which cost between €150 million and €200 million each.
What Makes High-NA EUV So Costly?
EUV (extreme ultraviolet) lithography is essential for manufacturing chips below 7nm. ASML is the sole supplier. The current generation uses a numerical aperture (NA) of 0.33. High-NA EUV pushes NA to 0.55, enabling finer circuit patterns needed for future nodes. However, its price tag of over €350 million ($410 million) is roughly double that of a standard EUV scanner.
Most AI training chips today, including NVIDIA's H100 series built on N4/N3 nodes, can still be produced with conventional EUV. Core TSMC customers like NVIDIA, AMD, and Apple do not require High-NA EUV for their upcoming product cycles.
Market Signal from the Largest Buyer
TSMC has historically been the biggest purchaser of ASML's EUV systems. By declining to adopt the new generation, it sends a clear signal about the technology's near-term commercial viability. Bloomberg's Neil Campling noted that the other two High-NA EUV buyers—Intel and Samsung—face their own headwinds. Intel is restructuring its fabs with multiple delays, while Samsung struggles with advanced-node yields. If TSMC, the most efficient user of advanced lithography, chooses to wait, it could slow the entire High-NA roadmap.
Why 2029 Makes Sense for TSMC
The delay is not a rejection of High-NA EUV's technical potential. Rather, TSMC believes its current EUV tools, combined with multiple patterning, can handle most production needs until at least the 2nm (N2) node. The company has no urgent need to switch to High-NA EUV for N2 or its immediate successors. Only when moving to 1.4nm or 1nm nodes will the optical precision of High-NA become indispensable. Until then, TSMC is content to let its smaller rivals bear the early adoption costs.