“Ditching” ASML? Two news from TSMC, free from dependence on US technology?

At present, the world is still in the quagmire of the lack of core, at present, ASML as the world’s only lithography monopoly giant, can be said to have eaten all the dividends of the times. However, the recent situation that ASML was not expecting still emerged, TSMC may be trying to get rid of the dependence on U.S. technology.

The two actions released so far seem to have the intention of getting rid of ASML’s lithography. So, what exactly is TSMC trying to do with this move? If TSMC really wants to get rid of the reliance on U.S. technology and abandon ASML lithography, then will TSMC succeed?

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Two TSMC news, ASML may not matter anymore
Recently, TSMC has made two big moves that ASML may not have expected. The first move is that TSMC publicly stated not long ago that even without EUV lithography, mass production of 5nm and 7nm wafers can be achieved by using DUV lithography alone.

In addition, TSMC has said more than once that it wants to accelerate the adoption of new technologies, the discerning eye will be able to see at a glance, TSMC’s position also reveals that TSMC seems to be ready to reduce the reliance on ASML lithography.

The second action is that TSMC has also recently announced its financial spending plan for this year, ready to invest $44 billion, mainly in the construction of new factories and the development of new technologies. Are there any problems developing? There does not seem to be much consideration for the purchase of ASML lithography in ASML’s major capital investment.

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As a chip foundry, the importance of ASML lithography to TSMC is self-evident, but TSMC just did not put much emphasis on it, which can’t help but make the public opinion feel that ASML is not so important in TSMC’s mind, which makes people suspect that TSMC may want to abandon ASML. So, why is TSMC doing what it is doing?

What is TSMC’s intention in this move?
First of all, TSMC may want to get rid of dependence and achieve independence

As we all know, TSMC’s dependence on ASML in terms of foundry equipment lithography is not small. And ASML’s lithography machines are notoriously expensive. Therefore, TSMC’s behavior of neglecting ASML may be to reduce or get rid of the dependence to a certain extent, and to realize its own independence to a certain extent.

Second, to improve their market influence

TSMC’s new move to get rid of ASML’s lithography is more or less the same, and at the moment, the only company that dares to blatantly show its desire to “abandon” ASML is TSMC, and such a “feat” is undoubtedly helpful in increasing TSMC’s market influence.

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Finally, to break away from U.S. technology dependence and achieve freedom of shipment

TSMC’s two latest moves actually mean that it is ready to develop new technologies, so that TSMC can no longer use equipment with or without core technology such as ASML lithography. What is the benefit to TSMC? That is to get rid of or reduce the dependence on U.S. technology.

The U.S. may have less reason to dictate TSMC’s wafer shipments in the future, so that it can achieve freedom of shipment.

TSMC may be trying to get rid of its dependence on ASML, but if we look deeper, it may also be trying to get rid of its dependence on U.S. technology. So, will TSMC succeed in getting rid of it in the future?

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Will TSMC be able to break away from its reliance on U.S. technology?
I am afraid that TSMC will have some difficulty to get rid of its dependence on U.S. technology in the future. Why? Because at this point in time, TSMC’s foundry wafers should not be able to get rid of lithography, especially EUV lithography, so where does TSMC want to get rid of its dependence on US technology?

In addition, even if TSMC does develop a new process, and really get rid of the U.S. technology dependence, the U.S. will definitely not stand by and watch, after all, TSMC such a move is challenging the U.S. leading position. I’m afraid it’s hard to say whether TSMC will be able to hold on to this new process under U.S. restrictions, and naturally, under U.S. pressure, TSMC may still not be able to get rid of its dependence on U.S. technology in the end.

Can the TSMC share price keep cashing in its chips?

Of course, everything can not be said too absolutely, TSMC’s own scientific research strength is actually not too weak, after all, in the chip manufacturing process, TSMC has always been the world’s leading existence, with such strong scientific research capabilities, the future, the development of new technologies to break away from the dependence on U.S. technology is actually not impossible. With such strong scientific research capabilities, it is possible to break through the pressure that may be exerted by the United States.

Conclusion
TSMC has made two big moves, spending a lot of effort to develop new technologies, more or less freeing itself from U.S. technology dependence and “abandoning” ASML. TSMC may have caught Asmayr off guard with this move. Of course, for the time being, if TSMC really wants to do so, I am afraid it is very difficult to achieve at the moment.

As for the future, it’s hard to say, after all, TSMC’s own research strength is not weak, maybe there is really such a day may not be impossible.

Intel announced to order ASML’s next-generation EUV exposure equipment, a move that raised questions from South Korea

According to a report by the “South Korea Economic Daily”, after the rare disclosure of the transaction between Intel, a major processor manufacturer, and the latest generation semiconductor exposure machine of ASML, a major manufacturer of lithography and exposure machine, it caused a stir in the market. question.

The report pointed out that this week Samsung Tel announced that it has ordered the industry’s first new generation of extreme ultraviolet exposure machine (EUV) TWINSCAN EXE: 5200 to ASML, indicating that the two companies will strengthen technical cooperation. In the announced statement, Intel’s purchase of this new generation of EUV exposure equipment will enable the wafer manufacturing rate to reach more than 200 wafers per hour, which is also an important part of Intel’s plan to develop advanced semiconductor processes.

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The report emphasized that the new generation of EUV exposure equipment ordered by Intel will be more advanced than the current wafer foundry leader TSMC, and the EUV exposure equipment for the latest 3nm process is more advanced. According to analysis by South Korean market watchers, Intel may use these new exposure equipment for the more advanced 2nm process chip manufacturing.

The report further emphasized that in March 2021, Intel announced its new IDM2.0 plan, planning to return to the global foundry market and further challenge the current industry leaders – TSMC and Samsung. In addition to Intel’s previous announcement that it will build two new fabs in Arizona, the latest news is that Intel also announced that it will spend $20 billion to build a new fab in Ohio, and the fastest is expected to be 2025. Operation put into production.

Intel to invest up to $100 billion in Ohio chip plants

In addition to announcing the construction of a fab with large sums of money, Intel also announced its semiconductor advanced process development plan, with the goal of entering the 1.8-nanometer advanced process production node by 2024. But in this regard, the report quoted South Korean market observers as saying that this plan seems a bit reluctant in terms of Intel’s current development pace in advanced manufacturing processes. Therefore, South Korean market participants believe that Intel’s unusual announcement of the latest deal with ASML is aimed at reducing the pressure on the market to question Intel’s technology. As for whether this is the case for the results, it remains to be observed.