According to an executive speaking at a conference in Amsterdam, Taiwanese chipmaker TSMC may not necessarily rely on ASML’s next-generation “High NA EUV” machines for its upcoming A16 chip manufacturing technology, slated for development in the latter half of 2026. Although these advanced lithography tools are anticipated to significantly reduce chip designs by up to two-thirds, TSMC must weigh the benefits against the higher costs, as well as consider whether older ASML technology might offer sufficient reliability.

Kevin Zhang expressed at the conference that while it’s feasible for TSMC’s A16 facilities to integrate the technology, it’s not a certainty. TSMC, being the world’s largest contract chipmaker, is currently the largest user of ASML’s standard EUV machines.

Zhang mentioned to reporters, “I appreciate the technology, but I’m not fond of the price tag.” TSMC’s A16 node is set to succeed its 2-nanometer production node, expected to commence mass production in 2025.

Zhang emphasized, “The timing for High NA EUV adoption will depend on achieving the optimum balance between economic feasibility and technical advancements.”

The High NA tools are projected to cost over 350 million euros ($378 million) each, significantly more than ASML’s regular EUV machines priced at around 200 million euros.

ASML, as Europe’s premier tech firm, holds a dominant position in the lithography systems market, providing machines that employ light beams to aid in chip circuitry creation. While lithography is just one of the technologies chipmakers utilize to enhance chips, it plays a crucial role in determining the smallest possible features on a chip, directly impacting speed and energy efficiency.