TAIPEI - Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chipmaker, announced plans to start producing 2nm chips by 2025, utilizing the advanced Extreme Ultraviolet (EUV) lithography technology provided by ASML (AS:ASML). The move comes after TSMC initiated mass production of its 3-nanometer (nm) chips as of late 2022. In a strategic move to maintain its market dominance and technological edge.
This technological advancement has been pivotal for TSMC, as it seeks to stay ahead of key competitors such as Intel (NASDAQ:INTC) and Samsung (KS:005930). The use of ASML's EUV technology is a significant factor in TSMC's ability to produce smaller, more powerful, and energy-efficient chips, which are in high demand across a range of applications from smartphones to high-performance computing.
Intel, not to be outdone, is also making strides in the semiconductor space. The company is in the process of integrating next-generation high Numerical Aperture (high-NA) EUV systems into its manufacturing processes. Intel's goal is to leverage these advanced machines to produce its 18A node chips and aims to surpass TSMC's market leadership by the end of 2024.
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