TSMC Collaborates to Expand Large-Format Photomasks for High NA EUV

Taiwan Semiconductor Manufacturing Company TSM, or TSMC, is teaming up with ASML Holding N.V. ASML to advance the semiconductor industry’s shift toward larger-format extreme ultraviolet (EUV) photomasks. While High Numerical Aperture (High NA) EUV will initially be adopted for production using the current 6-inch masks, the transition to larger 12-inch masks is expected to boost fab productivity, lower chipmaking costs and eliminate stitching constraints across the semiconductor industry. This will allow advanced chipmakers to fully leverage the advantages ofHigh NA EUV, making next-generation leading-edge chips more cost-effective to produce.

The companies established the industrywide initiative on Sept. 7, ahead of the annual SPIE BACUS Conference in Monterey, CA. The effort aims to establish a 12-inch mask pilot line by 2031, paving the way for 12-inch High-NA lithography systems to enter advanced-node production by 2033.

TSMC plans to use ASML’s High-NA technology in high-volume manufacturing for advanced nodes starting in 2030. As nodes become more advanced, TSMC expects more layers to require High NA EUV, primarily because of the increasingly complex transistor architectures needed for AI applications. Underscoring broad industry support, High NA EUV adopters and other major suppliers have expressed their interest in joining the initiative.

Key leadership at TSMC emphasized the value of industrywide collaboration in addressing complex manufacturing challenges, noting that bringing together expertise across the semiconductor value chain can help drive continuous innovation, lower barriers to advanced technologies and make advanced solutions more accessible at scale.

TSMC’s Peer Update

Intel INTC Foundry and ASML are building on years of collaboration to bring together the lithography ecosystem around larger-format masks. The companies are working to develop the standards, infrastructure and technologies needed for future High NA EUV scaling. At the SPIE Photomask Technology + Extreme Ultraviolet Lithography conference, Intel Foundry said that High NA is now being used in high-volume manufacturing, with more than one million wafers processed to date across early tool certification and testing, research and development, and volume production on select layers for a subset of Intel Core Ultra Series 3 processors, code-named Panther Lake.

Intel Foundry began deploying High NA by installing its first commercial EXE system in 2024 and has since qualified newer-generation tools and shipped a high-volume logic product manufactured using the technology.

The Zacks Rundown for TSM Stock

Over the past year, TSMC shares have surged 68.2% compared with the industry’s 69.6% growth. 

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TSM currently trades at a forward earnings multiple of 22.31 over the past 12 months compared with the industry average of 22.23.

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Estimates for TSMC’s earnings have steadily moved upward over the past three months.

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TSMC sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

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