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TSMC increases purchases of ASML equipment for EUV lithography
In mid-October, TSMC announced that in the past quarter, the sale of 5-nm products formed up to 8% of the company’s total revenue, and in 2021 this share will only increase. TSMC began to use EUV lithography as part of the 7-nm process technology, but an increase in production volumes requires the purchase of an additional number of ASML scanners.
Image source: TSMC
Taiwan-based DigiTimes today reported that TSMC has already booked with ASML for a 2021 delivery of at least 13 lithographic ultra-hard ultraviolet (EUV) scanners. Whether it is a lot or a little, it is easy to understand by referring to the quarterly reports of ASML itself – a holding from the Netherlands, which is the largest manufacturer of such equipment in the world.
In the first nine months of this year, ASML managed to ship 23 scanners for working with EUV lithography; by the end of the whole year, the company expects to deliver at least 35 scanners. In fact, ASML released 14 EUV scanners in the third quarter, so TSMC could reserve a number of systems equivalent to ASML’s quarterly production. It would seem that everything is proportional, but let’s not forget that TSMC is not the only client of ASML. According to TrendForce, TSMC had 51.5% of the semiconductor component manufacturing contract market by the middle of this year.
Of course, not all ASML customers now need exactly EUV scanners, but in the past quarter, the company’s revenue from their sales for the first time reached 66% of the total, bypassing the share of revenue from the sale of traditional DUV scanners. In other words, it can be assumed that TSMC has booked an approximately quarterly quota for the production of EUV scanners, leaving competitors with little chance of obtaining such equipment on time.
This trend may explain the concern of Samsung Electronics’ management, which recently spent a whole week in the Netherlands visiting ASML facilities and negotiating with the company to deepen cooperation. Samsung has already begun mass production of 5nm products, so the Korean company is no less interested in a stable supply of EUV scanners than TSMC.