Too expensive! TSMC: Will not deploy ASML's latest lithography machine before 2029.

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TSMC has decided to postpone the adoption of ASML’s most advanced lithography equipment, casting a shadow on the commercialization progress of the Dutch equipment giant.

TSMC’s co-deputy chief operating officer Kevin Zhang stated that the company currently has no plans to use ASML’s High-NA EUV lithography machines for chip mass production, and this decision will be maintained at least until 2029.

This device is priced over 350 million euros (about 410 million US dollars) and is regarded as the most cutting-edge equipment in semiconductor manufacturing.

ASML expects High-NA EUV equipment to be widely used in mass production from 2027 to 2028, and based on this, has set its 2030 revenue target at up to 60 billion euros.

TSMC is ASML’s largest customer, and its purchasing decisions directly affect the market’s perception of the commercialization pace of this device. Since TSMC is also the largest buyer of semiconductor equipment worldwide, its technical choices serve as a broad demonstration effect for the entire industry.

Due to this news, ASML’s stock price fell 2% briefly.

Cost is the main consideration

In an interview with reporters, Kevin Zhang made it clear that TSMC will continue to deeply tap the value of existing EUV technology. He stated frankly that the next-generation High-NA EUV equipment is “very, very expensive,” conveying the company’s current capital allocation logic.

At the same time, Kevin Zhang announced that TSMC’s advanced process A13 chips will officially begin mass production in 2029.

This timeline coincides with the boundary for postponing the adoption of High-NA EUV, further indicating TSMC’s sufficient confidence in existing EUV technology.

ASML commercialization expectations under pressure

For ASML’s investors, TSMC’s statement carries important signals. The market is closely watching the procurement progress of High-NA EUV, seeing it as a key indicator for assessing ASML’s long-term growth visibility.

Currently, TSMC has purchased a small number of High-NA EUV devices, but they are only used for R&D and have not yet been applied to mass production.

Given TSMC’s scale and influence in the semiconductor industry—it has the largest new plant and equipment budget, and its manufacturing processes are often imitated by peers—this decision could affect the industry-wide timeline for equipment demand.

While postponing the introduction of High-NA EUV, TSMC has not abandoned its goal to enhance chip performance. Kevin Zhang stated that the company is exploring ways to increase chip computing power without using High-NA EUV equipment.

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