Lithography

Amid escalating U.S.-China trade tensions, ASML, a Dutch lithography systems manufacturer, is a key player. U.S. export restrictions, mirrored by Dutch licensing, limit China’s access to ASML’s advanced EUV technology, crucial for cutting-edge chip production. ASML anticipates a sales decline to Chinese customers. This impacts China’s semiconductor development, hindering its ability to compete with the U.S. Access to advanced semiconductors is vital, representing a critical fault line in the U.S.-China relationship, with implications for the global economic and geopolitical landscape.

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.