TSMC will use ASML's next-gen High-NA EUV machines for next-gen A14 process node in Q3 2027

TSMC has just completed its first wave of purchases plans for ASML's bleeding-edge High-NA EUV lithography machines, which TSMC will use for its next-gen A14 process in Q3 2027, and A14P process node expected in 2028.

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The news is coming from DigiTimes which reports that with the large-scale procurement plan established, TSMC continues to be ASML's largest customer. TSMC is also "the key" to ASML's future operational growth momentum as the development of the Chiense market continues to be suppressed.

Intel announced in April 2024 that its R&D team at its R&D base in Hillsboro, Oregon, USA, that it had completed the industry's first High-NA EUV assembly. If you didn't already know, Intel is TSMC's number one main rival... and Intel had ASML's first High-NA EUV machines installed.

ASML's bleeding-edge TwinScan EXE:5000 lithography machine costs about $380 million USD. The Netherlands-based company will deliver the High-NA EUV lithography machines to TSMC in 2027 after completing several calibration steps.

• Read more: TSMC boss skips his own event, flies to Netherlands to meet with ASML boss about EUV machines

It was only a couple of months ago that TSMC CEO C.C. Wei skipping his own event, to fly out to the Netherlands to meet with ASML to discuss securing High-NA EUV lithography machines. Now, we're hearing reports that ASML is providing TSMC with High-NA EUV lithography machines, so it looks like Wei's meeting with ASML a couple of months ago worked.

• Read more: TSMC is developing 1.4nm chips called A14 that are due to arrive around 2027
• Read more: ASML expects it will offer Hyper-NA chipmaking machines by 2030: reaching just 0.75 NA
• Read more: ASML rumored to charge up to $700 million per next-gen Hyper-NA EUV machine by 2030

The report from DigiTimes continues, saying that it's rumored that TSMC controls the absolute market dominance and is also the customer with the largest order volume for ASML's new High-NA EUV machines.

TSMC's current 3nm production lines are fully loaded through to 2026, while the new 2nm process node is expected to enter mass production in Q4 2025. Customers continue piling up their next-gen chip orders with TSMC, so the momentum of EUV machine purchases has "finally been restarted".

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It's estimated that the scale of this wave of new orders will hit around 70 units, with a price of $380 million per High-NA EUV machine; that's a hefty $26.6 billion in new orders for ASML from TSMC alone.

TSMC is also expected to have negotiated sales discounts for next-generation EUV equipment with ASML and established the process technology and promotion schedule for the next five years.

TSMC's next-gen A14 process node is expected to enter risk trial production in the first half of 2026, with mass production aimed at Q3 2027 at the earliest.