TSMC, Samsung Back ASML’s $400 Million Chipmaking Machines

ASML’s extreme ultraviolet lithography systems are essential equipment for manufacturing the world’s most advanced semiconductors, using light to print extremely small circuit patterns onto silicon wafers. Its newer High Numerical Aperture, or High NA, systems can create even finer and more intricate patterns than existing EUV equipment. That capability is becoming increasingly important as chipmakers push transistor density and performance to new levels.

Samsung plans to deploy High NA EUV technology in the production of DRAM, a critical type of memory used across computing systems. The South Korean chipmaker said it would begin using ASML’s machines for DRAM production from 2028, with broader adoption planned by 2030. Samsung expects the technology to extend its DRAM scaling roadmap while improving manufacturing efficiency.

TSMC is also preparing to use the equipment for advanced semiconductor production. The Taiwanese foundry expects adoption of High NA systems to increase as AI applications demand increasingly sophisticated transistor architectures. The commitment adds another major customer for the technology alongside Intel, which ASML said in July was already using High NA EUV for advanced chip manufacturing.

The announcements could ease investor concerns over how quickly customers will adopt ASML’s newest generation of lithography systems. Barclays described the commitments as positive because they provide greater visibility into future demand, an important consideration after ASML shares gained roughly 120% over the previous year. The company has not provided a recent forecast for High NA unit sales, but plans to increase its overall EUV production capacity by about 30% in 2027.

Strong demand could now force ASML to consider whether it needs to expand manufacturing capacity even further. Barclays said the company faces an important decision on additional EUV capacity beyond its recently increased targets. With TSMC, Samsung and Intel moving toward High NA technology, ASML is gaining clearer indications that its most advanced equipment will play a meaningful role in future semiconductor production.

Beyond lithography equipment, TSMC and Samsung are joining ASML in an industry initiative to develop next-generation 12-inch photomask technology, replacing the current 6-inch format. Photomasks act as templates carrying the circuit patterns transferred onto semiconductor wafers during production. ASML expects the larger format to improve manufacturing productivity and help reduce chip production costs as the semiconductor industry scales increasingly complex technologies for the AI era.