ASML will launch chips produced with unprecedented (and very expensive) technology

The announcement comes amid industry debate about the high cost of the new technology, considered strategic for the production of more advanced semiconductors. Each device can achieve values ​​close to US$400 million which led companies in the sector to adopt different implementation rates.

While groups like Intel and SK Hynix accelerate testing of the platform, TSMC recently reported which intends to continue, for now, using the current generation of ASML machines for its next lines of chips.

For those in a hurry:

• ASML plans to launch the first chips manufactured with High-NA machines in the coming months, aimed at producing even smaller components;
• The sector discusses the high cost of the new technology, while companies such as Intel and SK Hynix advance in adopting the system;
• The growing demand for artificial intelligence reinforces pressure on the global semiconductor chain and production capacity.

New generation of chips expands technological dispute

High-NA EUV technology represents the latest evolution of extreme ultraviolet lithography systems used in semiconductor manufacturing. According to ASML, the new model will allow the creation of significantly smaller and more precise circuits, expanding the processing capacity of chips aimed at advanced applications.

During the event promoted by the research institution imec, in Antwerp, Christophe Fouquet stated that the first products manufactured with the new platform should initially appear in the memory (RAM memory) and logic (CPU and GPU) segments. The executive acknowledged that the high cost and the validation process are still challenges for the industry.

“These technologies are expensive. Require qualification. But they are designed to reduce production costs over time”, stated Christophe Fouquet, executive president of ASML, during a conference organized by imec.

The race to adopt the technology occurs amid accelerated growth in global demand for chips linked to artificial intelligence. Fouquet stated that the advancement of AI should sustain an annual expansion of close to 20% in the sector’s sales in the coming years.

ASML occupies a strategic position in this market by supplying equipment used by the largest semiconductor manufacturers in the world. The company’s EUV machines are used to print microscopic circuits on the most advanced chips available today.

Datacenters (Reproduction: basiczto/Shutterstock)

Among the most active customers in adopting the new platform is Intel, which seeks to increase its competitiveness against TSMC and Samsung. Memory manufacturers, such as SK Hynix, have also indicated their intention to use High-NA technology in future generations of products.

TSMC, however, maintains a more cautious stance. The company recently reported that it will continue to rely on current versions of EUV machines in part of its next generations of chips, arguing that it can still achieve performance gains through design solutions without the immediate need to further reduce circuits.

Fouquet also commented on the sector’s concerns about possible production bottlenecks in the face of the expansion of artificial intelligence. According to him, although there are fears about ASML’s ability to meet future demand, the biggest challenge lies in the manufacturing expansion of the chip manufacturers themselves.