Chips are the core of today's technology industry and an important symbol of national competitiveness. On the battlefield of the global chip manufacturing industry, TSMC has always been the undisputed hegemon, providing high-performance chip products for many internationally renowned brands with its advanced process technology and stable production capacity. However, TSMC's leading position has recently been challenged by the United States, which has invested heavily in building a high-NA EUV semiconductor R&D center, intending to break through the chip process below 1 nanometer, thereby redefining the pattern of chip manufacturing. In the face of a strong attack by the United States, can TSMC maintain its technological advantages and continue to lead the future of the chip industry?
TSMC is the world's largest chip foundry and one of the most advanced chip manufacturers in the world. TSMC's technical advantages are mainly reflected in two aspects: one is the leading process node, and the other is the application of EUV lithography technology.
The process node is an important indicator of the level of chip manufacturing, which reflects the density and size of the transistors on the chip, usually measured in nanometers. The smaller the process node, the higher the performance of the chip, the lower the power consumption, and the lower the cost. At present, only TSMC and Samsung have mastered the 3nm process in the world, and Samsung has not officially launched the 3nm chip. TSMC has already started mass production of 3nm chips and plans to launch a 2nm process in 2024. TSMC's process nodes are ahead of other competitors, winning it the favor of many customers, including Apple, Qualcomm, Nvidia, and others.
EUV lithography is one of the key technologies in chip manufacturing, which uses extreme ultraviolet light to carve tiny patterns on silicon wafers to form the circuit structure of the chip. EUV lithography technology can greatly improve the manufacturing efficiency and accuracy of chips, and reduce manufacturing costs and complexity. TSMC is one of the first chip manufacturers in the world to adopt EUV lithography technology, and has widely applied EUV lithography technology in 7nm, 5nm and 3nm processes, and plans to further increase the proportion of EUV lithography in 2nm processes. The application of TSMC's EUV lithography technology has enabled it to maintain its leading position in the field of chip manufacturing.
The United States is the world's largest consumer of chips and the world's largest chip design country, with many well-known chip design companies, such as Intel, AMD, Qualcomm, NVIDIA, etc. However, the United States lags behind TSMC and Samsung in the field of chip manufacturing, especially in the field of high-end chip manufacturing, the United States has almost no independent production capacity, but relies on foreign foundries such as TSMC. This situation makes the United States have a huge risk on the chip chain, and in the event of a crisis, the chip in the United States may be seriously affected.
In order to change this passive situation, the United States decided to make efforts in the field of chip manufacturing and put forward an ambitious plan: to establish a high-NA EUV semiconductor R&D center to promote the chip process to below 1 nanometer. High-NA EUV is a more advanced EUV lithography technology that uses higher numerical aperture (NA) lithography equipment to achieve higher resolution and smaller pattern sizes, resulting in more advanced chips. High-NA EUV technology is considered to be a key technology for future chip manufacturing, which is expected to break the ceiling of chip manufacturing and achieve a process node below 1 nanometer.
The plan for the U.S. HIGH-NA EUV semiconductor R&D center is jointly promoted by the United States** and enterprises, and is expected to invest $10 billion to be established in Albany, New York. The R&D center will bring together well-known chip companies in the United States such as IBM, Micron and Applied Materials, as well as the world's leading chip equipment manufacturers such as ASML. The R&D center will purchase the latest Twinscan EXE:5200 lithography equipment from ASML, which is currently the only lithography equipment in the world capable of high-NA EUV technology, with a price tag of up to $200 million each. The R&D center is expected to create 700 new jobs and attract $9 billion in private investment. The plan of the U.S. HIGH-NA EUV semiconductor R&D center shows the ambition and determination of the United States in the field of chip manufacturing, intending to regain the dominance of chip manufacturing and challenge TSMC's leading position.
In the face of the challenge from the United States, TSMC did not sit still, but actively responded and adopted a variety of strategies to maintain its technological advantage and market share.
First of all, TSMC has increased its R&D investment in high-NA EUV technology and maintained close cooperation with ASML to strive not to lag behind the United States in the application of high-NA EUV technology. TSMC has established a High-NA EUV R&D center in Tainan City, Taiwan, and plans to introduce Twinscan EXE:5200 lithography equipment around 2025 and achieve mass production of the 1nm process around 2027. TSMC's executives said that TSMC is confident that it will keep pace with the United States and even lead in the application of high-NA EUV technology.
Secondly, TSMC has strengthened its layout in the U.S. market to consolidate its position and influence in the United States. TSMC has invested $12 billion in Arizona to build a 5nm chip manufacturing plant, which is expected to start mass production in 2024 to provide faster services to customers in the United States. TSMC also plans to invest $40 billion in the United States to build a complete chip ecosystem, including design, manufacturing, packaging, testing and other links. These measures by TSMC are not only a goodwill response to the United States**, but also an emphasis on and expansion of the American market to enhance its competitiveness and partnership in the United States.
Finally, TSMC has stepped up its expansion into other markets in search of more growth opportunities and risk diversification. TSMC is not only in the United States, but also in Europe, Japan, China and other regions to seek more cooperation and investment to meet the needs of customers in different regions, and at the same time to establish more production capacity and first-class chain guarantee for itself. TSMC is also actively expanding into new application areas, such as automotive, Internet of Things, artificial intelligence, etc., to seize opportunities in emerging markets and improve its profitability and market share.
Conclusion: Who can lead the future of chip manufacturing?
Chip manufacturing is a field full of change and competition, and both the United States and TSMC are important players in it. The U.S. High-NA EUV Semiconductor R&D Center program is a major breakthrough in the field of chip manufacturing in the United States and a challenge to TSMC. TSMC uses its own technological advantages and market strategies to respond to the challenges of the United States and maintain its leading position. Who can lead the future of chip manufacturing?This is a question of concern and one to which there is no definitive answer. We can only wait for the test of time to see who can win the final victory in this chip war.