Samsung and TSMC, the world’s two largest chipmakers, have committed to using ASML’s High NA extreme ultraviolet (EUV) lithography machines. This move reflects the rising demand for more advanced chips as the industry continues to push the boundaries of semiconductor technology.
High NA EUV Lithography: A Critical Tool
ASML’s EUV lithography machines are essential for printing circuit patterns onto silicon wafers during chip production. The High NA machines can create smaller and more intricate patterns, making them vital for next-generation chip manufacturing. Each machine costs around $400 million.
Samsung and TSMC Adoption Plans
Samsung, a leading memory chipmaker, plans to use ASML’s machines to produce DRAM from 2028. The company aims to adopt the technology in 2030, extending its DRAM scaling roadmap while improving manufacturing efficiency.
TSMC will use the High NA machines for advanced chips, noting that the demand is driven by the complexity of transistor architectures required for AI applications.
Investor and Analyst Reactions
Investors are closely watching the success of High NA EUV machines, as they are critical to ASML’s future growth. Barclays highlighted that the announcements provide greater visibility into adoption, which has been a key topic of discussion.
Shares of ASML were flat-to-lower in early trading, despite the positive news. The company has not yet provided a recent forecast for machine sales but plans to increase EUV capacity by 30% in 2027.
Industry Collaboration and Photomask Advancement
TSMC and Samsung will also join ASML in an industry initiative to advance next-generation 12-inch photmask technology, moving from the current 6-inch format. Photomasks are crucial in chip production, acting as stencils for printing patterns on wafers.
ASML emphasized that larger photomasks offer better productivity and lower chipmaking costs, further boosting the appeal of High NA EUV technology.