TSMC to Mass Produce 2nm Chips in 2026

Taiwan Semiconductor Manufacturing Co. (TSMC) may not necessarily need to use ASML's next-generation High NA EUV (Extreme Ultraviolet) lithography machines for its forthcoming A16 chip manufacturing technology, which is slated for development in the second half of 2026. This statement was made by TSMC executive Kevin Zhang during a conference in Amsterdam.

High NA (Numerical Aperture) lithography tools from ASML are anticipated to significantly reduce chip design sizes by up to two-thirds, offering potentially transformative benefits for the semiconductor industry. However, these advancements come with higher costs, prompting chipmakers to carefully consider the economic and technical benefits versus those offered by ASML's existing EUV technology. Zhang mentioned that while TSMC's A16 manufacturing plants might be designed to incorporate High NA technology, this is not a definitive plan.

TSMC, the largest user of ASML's regular EUV machines, remains cautious about the adoption of the High NA tools, which are projected to cost over 350 million euros ($378 million) each compared to 200 million euros for ASML's regular EUV machines. The decision to deploy these advanced tools will depend on finding an optimal balance between economic viability and technical advancement.

Zhang emphasized that while he appreciates the technological benefits of High NA EUV, the steep price is a significant consideration. TSMC's A16 node, which will follow its 2-nanometer production node expected to enter mass production in 2025, will evaluate the necessity of High NA EUV based on its cost-effectiveness and technical advantages at the time.

ASML dominates the lithography market with its EUV machines, critical for creating the intricate circuitry of chips. Lithography is pivotal in determining how small chip features can be made—smaller features typically result in faster and more energy-efficient chips. The advancements in High NA EUV are thus crucial for the future of semiconductor manufacturing.

Intel recently announced that it had become the first company to assemble one of ASML's new High NA EUV lithography tools, marking a significant milestone in its efforts to surpass competitors in the semiconductor industry. This move underscores the competitive landscape where technological edge is paramount.