TSMC Delays High-NA EUV Adoption Until 2029, Opens Arizona Packaging Plant
Taiwan Semiconductor will forgo ASML’s high-numerical-aperture EUV machines through 2029, continuing production of its A13 chip on existing low-NA EUV tools due to the above €350 million unit cost. It has begun constructing an advanced packaging plant in Arizona to deploy CoWoS and 3D-IC capabilities by 2029.
1. EUV Adoption Delay and A13 Production
TSMC’s deputy co-chief operating officer stated the company will continue using its current low-NA EUV systems and has no plans to integrate ASML’s high-NA EUV lithography machines for chip production through 2029, citing unit costs in excess of €350 million. The decision aligns with TSMC’s roadmap to begin volume production of its leading‐edge A13 node in 2029 using existing equipment.
2. Arizona Advanced Packaging Expansion
Construction has commenced on TSMC’s first advanced packaging plant in Arizona, targeting operational CoWoS and 3D-IC capabilities by 2029. This U.S. facility aims to alleviate supply bottlenecks for AI chip customers by integrating packaging that would otherwise require shipment back to Taiwan.
3. Strategic Implications for Customers
By delaying high-NA EUV investment, TSMC conserves capital while focusing on incremental node improvements. Simultaneously, its U.S. packaging expansion diversifies manufacturing footprint and accelerates delivery of advanced packaging services to clients such as Nvidia and Apple.