Taiwan Semi Flags High Costs of ASML's Latest Chip Machines

Taiwan Semiconductor Manufacturing Co TSM, one of ASML Holding NV’s ASML significant clients, has expressed concerns about the high costs of ASML’s new advanced chip machines. 

At a technology symposium in Amsterdam, TSMC Senior Vice President Kevin Zhang remarked on the sticker price of the high-NA extreme ultraviolet system, which can imprint lines as thin as 8 nanometers and costs €350 million ($380 million) each, Bloomberg reports. 

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Despite appreciating the capabilities of the high-NA EUV, Zhang highlighted the economic considerations, stating that TSMC’s upcoming A16 node technology, due in late 2026, will continue to use older EUV technology instead of the new high-NA EUV machines. 

He noted the rising costs of factory operations as a broader challenge for the industry, with increasing expenses for construction, tools, electricity, and raw materials.

Meanwhile, TSMC is looking to build its $11 billion European chip plant in Dresden, Germany, backed by EU and German support. The plant will produce 22-nm car chips and has plans for advanced tech expansions.

TSMC reported first-quarter revenue growth of 16.5% to $18.87 billion, surpassing the Street consensus estimate of $18.40 billion. Advanced technologies comprised 65% of TSMC’s total revenue. 

Reportedly, big techs led by Microsoft Corp MSFT, Meta Platforms Inc META, and Alphabet Inc GOOGL committed over $32 billion in AI infrastructure in the first quarter alone.

Price Actions: TSM shares are trading higher by 0.37% at $152.50 premarket at the last check on Wednesday. ASML shares traded higher by 0.23% at $917.11.

Photo via ASML