Chipmaking

ASML’s stock dropped following proposed U.S. legislation aimed at further restricting China’s access to advanced chipmaking technology. The MATCH Act seeks to ban exports of ASML’s Deep Ultraviolet (DUV) lithography machines, vital for China’s semiconductor industry beyond the most cutting-edge nodes. While China has fostered domestic innovation, its reliance on ASML’s DUV tools for foundational chip manufacturing remains significant, potentially disrupting its industry if the bill passes.

Applied Materials (AMAT) introduced new chipmaking systems on Oct 7, 2025, designed to enhance AI chip performance. These include the Kinex™ bonding system for advanced logic and memory, the Xtera™ Epi system for Gate-All-Around transistors, and the PROVision™ 10 eBeam metrology system for improved yield in 3D chips. These innovations address critical areas like logic, DRAM, and advanced packaging, aiming to deliver performance and power-efficiency improvements needed to scale AI.

TSMC maintains that its advanced chipmaking roadmap, including the 1.4-nanometer (A14) process, doesn’t currently require High-NA EUV lithography. The company is prioritizing optimizing their existing EUV technology, achieving significant performance improvements using innovative designs like their second-generation nanosheet GAA, delaying the need for the costly high-NA systems. This strategy highlights TSMC’s focus on cost-effectiveness and technological innovation.