Intel is the first user of production-ready High-NA EUV machines. It is doing so knowing that “Chipzilla” initially passed up the previous generation of groundbreaking ASML machines, much to the benefit of TSMC, which did embrace EUV equipment for production starting in the mid-2010s. ASML has now managed to get TSMC, as well as Samsung, on board with High-NA EUV machines. With this, TSMC in particular appears to be avoiding an Intel-style mistake.
TSMC plans to begin mass-producing processors based on High-NA EUV starting in 2030, while Samsung intends to do so as early as 2028. Intel, which is already using the technology for production, is also part of a new agreement. ASML, TSMC, Samsung, and Intel have agreed that they will all switch from 6-inch masks to 12-inch ones. This could increase production by as much as 40 percent.
High-NA EUV proves its worth
High-NA EUV lithography is “simply” a further step in the light spectrum for chip manufacturing. Put simply: the more extreme the ultraviolet light, the smaller the chip designs can be. But also: the smaller the chip designs, the more expensive and energy-intensive they become. TSMC, by far the leader in advanced chip manufacturing, did not immediately see the benefit of High-NA EUV compared to standard EUV machines.
This is largely due to the price. At $400 million, a High-NA EUV machine would be roughly twice as expensive as a standard EUV machine, while the yield and performance gains over standard EUV aren’t enormous. However, with 12-inch masks and the technology now more mature after years of development, TSMC and Samsung are now willing to pay the higher price.
AI is a contributing factor and requires more production
It will have escaped few people’s notice that Nvidia has benefited enormously from the AI boom. But without TSMC and Samsung (and the other memory suppliers, SK Hynix and Micron), today’s GPUs would never have been possible. The margins for chip manufacturers are different because they must make massive investments to deliver at scale, which involves taking risks over years or even decades, including investments in EUV technology and, now, High-NA EUV.
ASML, as the supplier to the suppliers, holds a monopoly when it comes to EUV technology. Although there have been increasing reports from China in recent years pointing to a potential rival from the Far East, there is still absolutely no sign of change in this area. Anyone who needs advanced chips needs ASML. This is evident once again now that the rise of AI is generating enough revenue to justify the purchase of the exorbitantly expensive new machines.
Read also: ASML achieves EUV breakthrough: 50 percent more chips in the foreseeable future