TSMC Evaluates ASML High-NA Equipment Amid Intel Adoption Plans

Taiwan Semiconductor Manufacturing Company (TSMC) is currently evaluating the integration of ASML's advanced High Numerical Aperture (High-NA) EUV lithography machines, priced at nearly $400 million each, into its chip production processes. While these machines offer significant speed and precision advantages, TSMC executives have indicated no compelling reason yet to adopt High-NA for their upcoming A14 process node, choosing instead to extend the capabilities of existing Low-NA equipment. TSMC also plans to forgo using High-NA for its A16 process due to the high costs involved. In contrast, competitor Intel intends to implement High-NA technology in its future 14A process to enhance competitiveness, while still offering customers mature technology options. ASML expects mass production testing of High-NA machines around 2026-2027, with five units already delivered globally to Intel, TSMC, and Samsung. Market analysts maintain a positive outlook on TSMC's stock, projecting an average upside of around 10% based on current valuations and future growth prospects amid this cautious technological transition.