Taiwan Semiconductor Manufacturing Company (TSMC) is set to begin mass production of its 2nm advanced process technology by 2025, marking a significant milestone in the semiconductor industry. The production will be supported by over 60 Extreme Ultraviolet (EUV) exposure machines from ASML, with deliveries spanning this year and next, totaling an investment of over NT$400 billion.
ASML, a key supplier in this process, is ramping up its delivery capacity to meet the soaring demand. By 2025, ASML’s delivery volume is expected to increase by more than 30%, greatly benefiting Taiwanese manufacturers like Jiadeng, which is actively collaborating with ASML on next-generation High-NA EUV technology. Other local companies such as Fanxuan, Itex, Gongzhun, Jingding, and Xiangming are also set to gain from this expansion.
The supply chain is facing tight availability of EUV machines, with lead times stretching up to 20 months. This constraint means that orders placed in 2024 will largely be fulfilled by 2025. Current estimates indicate that TSMC will receive 30 EUV units this year and 35 next year, with slight adjustments possible due to capital expenditure variations.
ASML has proactively expanded its production capacity to cater to customer demands. The company plans to deliver 53 units this year and over 72 units next year. For 2025, ASML aims to produce 90 EUV, 600 Deep Ultraviolet (DUV), and 20 High-NA EUV units, as outlined in their recent production strategy.
TSMC’s capacity for advanced processes continues to grow. The 3nm plant in Tainan will enter mass production in the third quarter, with the P8 plant slated to incorporate EUV machines next year. The 2nm facilities in Hsinchu and Kaohsiung are progressing well, and additional funding for the U.S. P1A project is expected by Q3 2024.
The expansion of EUV machine use has simultaneously driven up the demand for EUV mask boxes, with Jiadeng poised to benefit the most. Their FOUP (front-opening wafer transfer box) continues to gain market share due to its superior production environment, surpassing even those of larger manufacturers.
As TSMC and its supply chain partners ramp up operations, they are expected to meet increasing customer demand and drive operational growth in the coming years.
