TSMC Balks at 400M ASML High NA Price Tag

TSMC manufactures computer chips using expensive machines from the Dutch company ASML. The Taiwan company started taking orders for 2nm chip production earlier this year. MediaTek plans to begin testing its first 2nm chipset during the fourth quarter of 2025. Advanced manufacturing requires cutting-edge equipment that creates fewer defective batches. TSMC wants to move beyond 2nm technology toward even smaller chip designs.

Future 1.4nm chips require ASML machines, each costing $ 400 million. These new processors offer 30 percent better power efficiency compared to current designs. Mass production is expected to begin around 2028 for this advanced technology. TSMC executive Kevin Zhang questions whether spending such enormous amounts makes business sense. The company currently uses machines that cost about half the price of newer equipment.

Samsung has already received five High-NA machines from ASML for competing in chip production. The South Korean company formed teams dedicated to 1nm manufacturing with 2029 production targets. TSMC might delay purchasing expensive equipment until the current machines become obsolete. The chip manufacturer maintains its leadership against competitors by utilizing existing technology. Decision makers weigh costs against potential manufacturing advantage
 

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