tech

Intel is closing in, while TSMC remains composed in response.

Intel is sprinting towards the foundry business and has become the buyer of ASML's first High-NA EUV (Extreme Ultraviolet Lithography with a high numerical aperture) system, a cutting-edge piece of equipment. It is anticipated that by 2025, Intel will use this system to manufacture advanced process chips. In contrast, TSMC is holding back. How TSMC maintains its leading position in process technology has become a point of interest.

According to Tom's Hardware, Intel has received the first High-NA EUV lithography system from ASML. Over the next few years, Intel plans to deploy this system to process nodes beyond 18A (that is, 1.8nm). It is reported that this state-of-the-art EUV equipment will be shipped to Intel's D1X factory in Oregon. Neither Intel nor ASML spokespersons have commented on the destination of this system.

Advertisement

Currently, EUV lithography systems can support chip manufacturers in advancing chip processes to around 3nm. However, if chip manufacturers wish to continue pushing to 2nm or even smaller dimensions, they will require High-NA exposure machines with a higher numerical aperture. Compared to the current 0.33 numerical aperture EUV lithography systems, High-NA EUV lithography systems increase the numerical aperture to 0.55, which can further enhance resolution. According to Rayleigh's formula, the larger the NA, the higher the resolution.

Previously, Intel purchased ASML's EUV equipment, the Twinscan EXE:5000. Intel is using it to learn how to better utilize High-NA EUV systems and for the development of 18A process technology, gaining valuable experience. The company plans to start mass-producing 18A process chips with the Twinscan EXE:5200 from 2025.

The High-NA EUV lithography equipment with a 0.55 NA lens can achieve a resolution of 8nm, which is a significant improvement compared to the standard EUV with a 0.33 NA lens, which offers a 13nm resolution. It is expected that High-NA technology will play a crucial role in post-2nm process technologies, which either require double patterning with low-NA EUV or single patterning with High-NA EUV.

In contrast, TSMC is not in a hurry to adopt High-NA EUV in the short term. SzeHo Ng, Managing Director of Hua Xin Capital, said that TSMC may need several years to catch up with this trend by 2030 or later.

Analysts from SemiAnalysis and Hua Xin Capital pointed out that TSMC will not follow suit with this technology for the time being. The main reason is that the cost of using High-NA EUV may be higher than using Low-NA EUV, at least initially, even though the low cost comes at the expense of lower transistor density in the produced chips.

TSMC began mass-producing chips with EUV lithography tools in 2019, a few months later than Samsung but several years earlier than Intel. It is speculated that Intel wants to take the lead over Samsung Foundry and TSMC through High-NA EUV, ensuring some tactical and strategic benefits. The only question is, if TSMC starts adopting High-NA lithography technology in 2030 or later (that is, 4-5 years later than Intel), will it still be able to maintain its leading position in process technology?According to ASML, the cost of the latest high numerical aperture (NA) extreme ultraviolet (EUV) lithography machines exceeds $300 million, meeting the needs of top-tier chip manufacturers and enabling the production of smaller and better chips over the next decade.

ASML's New CEO to Visit TSMC

Recently, ASML's incoming CEO, Christophe Fouquet, will lead a company delegation to visit Taiwan. The supply chain has reported that he will meet with TSMC and related supply chain manufacturers to discuss the new generation of EUV equipment.

ASML's management visit to TSMC, whether it is for the new High-NA EUV order, has not been confirmed by TSMC. However, TSMC will explore various possibilities, including investments in advanced packaging areas.

Legal entities have pointed out that the High-NA EUV has a construction cost exceeding $300 million. Considering cost-effectiveness, TSMC is not in a hurry to adopt it. Due to the imminent need for the company to build a factory in the United States, it is estimated that future capital expenditures will significantly tilt towards overseas expansion.

Fouquet joined ASML in 2008 and has held several management positions. He is currently the Executive Vice President and Chief Commercial Officer of ASML and will succeed CEO Peter Wennink in April this year. How to maintain ASML's market leadership while maintaining sales performance amidst tense U.S.-China relations will be the biggest challenge for Fouquet after taking over. Wennink will retire after his term ends. Since becoming CEO in July 2013, the company's revenue has grown fourfold, and the stock price has soared tenfold. He has also conducted four acquisitions during his tenure, which has allowed ASML to dominate the lithography equipment market.

Intel to Purchase 6 out of 10 High-NA EUVs Next Year

According to a report from TrendForce, Intel will secure the majority of ASML's 0.55 numerical aperture EUV lithography machines in 2024.

It is reported that in 2024, ASML will produce 10 High-NA EUV (Twinscan EXE: 5200 scanners, with Intel obtaining 6 of them, to be used for chip production using 18A or other process technologies in 2025 and beyond.

The use of Twinscan EXE may have a positive impact on the company's production cycle, although it is difficult to say whether this will have a positive impact on Intel's costs, as these machines will be much more expensive than the Twinscan NXE: 3600D or NXE: 3800E (some say between $300 million to $400 million), the latter of which already exceeds $200 million. In addition, due to the high numerical aperture lithography equipment's photomask size being twice as small, their usage will be different from what we see on typical EUV machines.In the realm of high numerical aperture (NA) learning, Intel is poised to take the lead over its competitors, which will confer several advantages. Specifically, as Intel is likely to be the first company to initiate high-volume manufacturing with high NA tools, the wafer fab tool ecosystem will inevitably align with its specifications. These requirements may well evolve into industry standards, potentially giving Intel an edge over TSMC and Samsung.

However, Intel's rivals are also vying for access to high NA extreme ultraviolet (EUV) lithography. Kyung Kye-hyun, Executive Vice Chairman and head of the Device Solutions Division at Samsung Electronics, stated this week that the company has reached an agreement with ASML for the procurement of high NA EUV.

"Samsung has secured priority access to high NA device technology," said Kyung Kye-hyun, "I believe that, in the long term, we have created an opportunity to optimize the use of high NA technology in the production of DRAM memory chips and logic chips."