Apple Inc (NASDAQ: AAPL) supplier Taiwan Semiconductor Manufacturing Co Ltd (NYSE: TSM) will get its hands on Netherlands-based ASML Holding NV's (NASDAQ: ASML) most advanced chip-making tool in 2024, Reuters reported, citing company executives.
What Happened: The high numerical-aperture extreme ultraviolet light (NA EUV) tool is considered the future of the semiconductor industry.
It produces beams of focused light that create the microscopic circuitry on computer chips used in phones, laptops, cars, and artificial intelligence devices such as smart speakers.
TSMC executives did not confirm when the device would be used for mass production.
See Also: ASML Aims To Make Next-Gen Chips Below 3-Nm: All You Need To Know
Why It Matters: Rival Intel Corp (NASDAQ: INTC) has previously claimed that it will begin using the machines in production by 2025 and that it would be the first to receive the tool.
TSMC, Intel, and South Korea’s Samsung Electronics use the current generation EUV machines to make chips that end up in the latest batch of computers and smartphones.
A new version of the EUV machine currently in the works could allow chipmakers to build even more sophisticated chips to power the next generation of electronic devices.
The High NA machines will cost about $300 million, twice as much as the existing EUV machines, and require complex new lens technology.
Price Action: TSMC stock closed 4.7% lower at $84.5 on Thursday and is down 34.4% year-to-date, according to data from Benzinga Pro.
