Taiwan Semiconductor Manufacturing Co (NYSE:TSM), one of ASML Holding NV’s (NASDAQ:ASML) significant clients, has expressed concerns about the high costs of ASML’s new advanced chip machines.
At a technology symposium in Amsterdam, TSMC Senior Vice President Kevin Zhang remarked on the sticker price of the high-NA extreme ultraviolet system, which can imprint lines as thin as 8 nanometers and costs €350 million ($380 million) each, Bloomberg reports.
Also Read: Biden Targets Chinese Imports With Huge Tariff Hikes Ahead of Election
Despite appreciating the capabilities of the high-NA EUV, Zhang highlighted the economic considerations, stating that TSMC’s upcoming A16 node technology, due in late 2026, will continue to use older EUV technology instead of the new high-NA EUV machines.
He noted the rising costs of factory operations as a broader challenge for the industry, with increasing expenses for construction, tools, electricity, and raw materials.
Meanwhile, TSMC is looking to build its $11 billion European chip plant in Dresden, Germany, backed by EU and German support. The plant will produce 22-nm car chips and has plans for advanced tech expansions.
TSMC reported first-quarter revenue growth of 16.5% to $18.87 billion, surpassing the Street consensus estimate of $18.40 billion. Advanced technologies comprised 65% of TSMC’s total revenue.
Reportedly, big techs led by Microsoft Corp (NASDAQ:MSFT), Meta Platforms Inc (NASDAQ:META), and Alphabet Inc (NASDAQ:GOOGL) committed over $32 billion in AI infrastructure in the first quarter alone.
Price Actions: TSM shares are trading higher by 0.37% at $152.50 premarket at the last check on Wednesday. ASML shares traded higher by 0.23% at $917.11.
Photo via ASML