TSMC and Samsung have committed to using ASML's High NA extreme ultraviolet lithography machines as demand grows for more advanced AI chips. Samsung plans to deploy the around $400 million tools for DRAM production from 2028, while TSMC expects to adopt them in 2030 for advanced chips.
Chipmakers commit to ASML's newest tools
Samsung and TSMC, the world's two biggest chipmakers, have committed to using ASML's High NA extreme ultraviolet lithography machines as demand grows for more advanced AI chips. The High NA machines print smaller, more intricate circuit patterns onto silicon wafers than earlier EUV tools, and each one can cost around $400 million.
One of the world's biggest memory chipmakers, Samsung said it would use ASML's machines to produce DRAM from 2028. TSMC, meanwhile, said it would adopt the technology in 2030 for advanced chips, and it expects use of High NA machines to rise, driven by the increasingly complex transistor architectures that AI applications require.
Barclays sees a boost to ASML's growth debate
Investors see broader adoption of High NA EUV as key to ASML's future growth, as the stock looks to extend a 120% run over the last year. According to Barclays: "should provide more visibility on adoption which has been a key debate", adding that the news is a positive.
Shares of Amsterdam-listed ASML were flat-to-lower in early trading on Tuesday. Samsung and TSMC join Intel as customers for the High NA machines — ASML said in July that Intel is already using the technology for advanced chip manufacturing. ASML has not given a recent forecast for how many machines it expects to sell, but has said it will add about 30% capacity for EUV in total in 2027.
A parallel push on photomask technology
TSMC and Samsung will also join ASML in an industry initiative to advance next-generation 12-inch photomask technology, upgrading from the current 6-inch format. Photomasks are the stencils used to print circuit patterns on wafers, and ASML said the larger format brings better productivity and lower chipmaking costs.
Source: CNBC
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