TSMC Installs EUV Machines for 10nm Chipmaking

According to ASML Taiwan executives, Taiwan Semiconductor Manufacturing Co. (TSMC) has outfitted itself with ASML's extreme ultraviolet (EUV) lithography machine, which is crucial to the development of 10-nanometer process technology for semiconductor manufacturing.

The Taiwan company is a subsidiary of ASML Holding N.V. of Holland, the world's leading supplier of lithography systems for the semiconductor industry. The multinational company's Taiwan-based executives say the company has landed orders for 11 EUV machines worldwide, of which six has been shipped including the one for TSMC, with the other five to be delivered late this year or early next year.

People knowledgeable about the deal say that TSMC ordered two of the 11 systems on the order book, and that TSMC has installed one of the two at its Fab 12 factory at the Hsinchu Science Park in northern Taiwan and is likely to install the other at its plant at the Central Taiwan Science Park early next year.

Industry executives feel that after acquiring EUV machines TSMC will easily overcome physical limits to migrate to 10nm process technology and below. When yield rate rises along with the latest lithography technology, TSMC can further cut production cost, they add.

ASML Taiwan executives say the Dutch company is very confident of helping customers begin pilot production using 10nm process technology by the end of this year and volume production using the technology by 2016.

Industry executives predict TSMC to initially drum up orders among international big-name contract buyers including Apple and Qualcomm for high-performance process technology that enables mobile chips to be more energy saving.

Priced in the 90 million euro (US$116 million) range, EUV lithography system is portrayed as “diamond” of semiconductor equipment, with the prohibitive price tag suggesting high threshold to sub-10nm process technology for chipmakers.

Samsung, Intel and IBM are also ASML's customers for EUV machines.

When beginning to develop the EUV technology, ASML invited TSMC, Samsung and Intel to share the high development costs by purchasing its stocks, with  TSMC buying 5% stake for 838 million euro.

Industry executives feel that ASML's announcement of 11 EUV machines booked suggests the company has overcome some major technical problems it had encountered. (KL)