Taiwan Semi Boosts Advanced Chipmaking with Record EUV Expansion, Grabs 56% Global Share

Taiwan Semiconductor Manufacturing Co TSM has significantly expanded its use of extreme ultraviolet (EUV) lithography systems, a critical tool in semiconductor manufacturing, despite the steep costs associated with each machine.

These advanced EUV systems cost over $100 million each and are among the chipmaking industry’s most expensive equipment.

Industry sources estimate that Taiwan Semiconductor has dramatically increased its EUV capacity, with its share of global EUV installations growing from 50% in 2020 to 56% in 2023, SCMP reports.

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Despite this, the company remains cautious about adopting next-generation high-numerical aperture (high-NA) EUV systems, citing the need to evaluate their cost, technological maturity, and potential client benefits before integrating them into its mass production processes.

Since launching its first commercial EUV lithography process for its 7nm+ technology in 2019, Taiwan Semiconductor has relied heavily on EUV tools for its subsequent processes, including 5nm and 3nm nodes.

As of 2023, Taiwan Semiconductor has increased its EUV system count tenfold compared to its initial deployment, solidifying its position as a leader in advanced semiconductor manufacturing.

SCMP writes that in 2022, Taiwan Semiconductor acquired 84 EUV machines, followed by more than 100 systems in 2023.

The company’s growing installation base now represents a significant portion of ASML’s global EUV deployments. ASML Holding NV ASML, the exclusive supplier of EUV lithography machines, is pivotal in enabling advanced chip manufacturing processes for Taiwan Semiconductor and other key players like Samsung Foundry.

Taiwan Semiconductor stock is reeling from the pressure of China’s export ban on advanced artificial intelligence chips. The U.S. recently ordered Taiwan Semiconductor to ban the supply of advanced chips—of 7 nanometers or more advanced designs—that support AI and graphics processing capabilities to China.

Donald Trump’s Presidential election victory has further perpetuated concerns. He attacked Taiwan’s semiconductor role and the Chips Act, favoring tariffs over subsidies.

Chinese chip expects expanded bans impacting key industries like smartphones and autonomous vehicles.

Taiwan Semiconductor stock surged over 85% year-to-date.

Price Actions: TSM stock is down 2.21% at $187.53 at the last check on Wednesday.

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Photo via ASML