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It seems that the endless race for progress has finally reached a dead end.
Taiwanese semiconductor giant TSMC has decided to hold off on switching to ASML's most advanced machines, and for the chip market, this move is more significant than a typical purchasing pause. AI processor production has already become so expensive that even the largest players are beginning to carefully consider where new technologies truly offer benefits and where they are becoming too much of a cost burden.
According to Bloomberg, the world's largest contract chip manufacturer will delay the implementation of the latest EUV systems fromASML , a Dutch lithography equipment manufacturer, until 2029. These are the most complex chip production machines, which currently cost over €350 million per unit. The company believes that its current equipment is still capable of achieving the desired results, and a delayed transition will help contain costs.
TSMC's decision could send a negative signal to ASML. The Taiwanese manufacturer is considered the company's largest customer, and investors are closely monitoring the market's adoption of the new generation of lithography systems. ASML expects mass adoption of these machines to begin in 2027–2028, with revenue reaching €60 billion by 2030.
The AI boom is putting increasing pressure on chipmakers. A modern fab for producing advanced AI chips costs approximately $20–30 billion, while even entry-level EUV machines can cost around $200 million. Against this backdrop, TSMC, according to Bloomberg, has decided to extend the lifespan of its existing lines and hold off on purchasing the most expensive systems.
For ASML, a delay from a key customer could complicate plans to sell new equipment. For the industry as a whole, TSMC's decision highlights another problem: the race for more powerful AI chips is increasingly being constrained not only by technology but also by marginal production costs.
Taiwanese semiconductor giant TSMC has decided to hold off on switching to ASML's most advanced machines, and for the chip market, this move is more significant than a typical purchasing pause. AI processor production has already become so expensive that even the largest players are beginning to carefully consider where new technologies truly offer benefits and where they are becoming too much of a cost burden.
According to Bloomberg, the world's largest contract chip manufacturer will delay the implementation of the latest EUV systems fromASML , a Dutch lithography equipment manufacturer, until 2029. These are the most complex chip production machines, which currently cost over €350 million per unit. The company believes that its current equipment is still capable of achieving the desired results, and a delayed transition will help contain costs.
TSMC's decision could send a negative signal to ASML. The Taiwanese manufacturer is considered the company's largest customer, and investors are closely monitoring the market's adoption of the new generation of lithography systems. ASML expects mass adoption of these machines to begin in 2027–2028, with revenue reaching €60 billion by 2030.
The AI boom is putting increasing pressure on chipmakers. A modern fab for producing advanced AI chips costs approximately $20–30 billion, while even entry-level EUV machines can cost around $200 million. Against this backdrop, TSMC, according to Bloomberg, has decided to extend the lifespan of its existing lines and hold off on purchasing the most expensive systems.
For ASML, a delay from a key customer could complicate plans to sell new equipment. For the industry as a whole, TSMC's decision highlights another problem: the race for more powerful AI chips is increasingly being constrained not only by technology but also by marginal production costs.
