Taiwan Semiconductor And Intel Weigh Benefits Of ASML's Pricey Chipmaking Equipment
Taiwan Semiconductor Manufacturing Co (TSMC) and Intel are evaluating ASML's advanced high numerical aperture (NA) machines, priced at $400 million. TSMC's Kevin Zhang criticized the cost for its A16 node, while Intel aims to use the High-NA EUV machine for its 14A process to enhance its contract chip business. ASML has increased production to meet demand from TSMC, Samsung, and Intel, with stock prices reflecting a slight decline. The decision on adopting these machines remains under consideration due to their high costs versus benefits.
Taiwan Semiconductor Manufacturing Co TSM and peer chipmakers are still evaluating ASML Holding’s ASML advanced high numerical aperture (NA) machines for their advanced technology nodes.
ASML’s almost doubled-priced $400 million machines have yet to outweigh the speed and benefits of the most expensive piece of equipment in a chip fabrication plant, Reuters reported on Tuesday.
Kevin Zhang of Taiwan Semiconductor had disapproved of the ASML machines for its A16 node, citing its price.
Also Read: ASML CFO Incorporates Tariff Impact In Outlook, Reveals Strong Demand For Advanced EUV And High NA Systems
Meanwhile, it weighed employing its Low-NA EUV machines for its A16 node by harvesting the scaling benefit.
Intel Corp INTC looks to leverage the High-NA EUV machine in its future manufacturing process, 14A, to revive its contract chip business and better compete with Taiwan Semiconductor. However, Intel said its customers could still employ older and more proven technologies.
ASML attributed a decade-long investment in developing a high numerical aperture behind its most advanced and expensive chipmaking machine.
The chip equipment maker manufactured its high NA machines in Connecticut, California, Germany, and the Netherlands.
It then assembled them in a lab in Veldhoven, Netherlands, for testing and approval before disassembling them again for shipment.
ASML has ramped up production to serve Taiwan Semiconductor, Samsung Electronics SSNLF, and Intel.
It also targets Micron Technology, Inc. MU, SK Hynix, and Rapidus.
Price Actions: ASML stock traded lower by 0.71% to $751.44 at the last check Wednesday. TSM is down 0.18%.
- These Semiconductor Stocks To Face Least Tariffs Impact Compared To Intel
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