tsmc achieves 30x euv wafer production boost, cuts power by 24%

2025-09-17 tsmc

Hsinchu, Wednesday, 17 September 2025.
Taiwan Semiconductor Manufacturing Company (TSMC) has reported significant improvements in its EUV lithography processes. Wafer production has increased 30-fold over the past six years. Power consumption has been cut by 24%. These advancements were achieved through in-house innovations, including EUV scanner enhancements and improved pellicle performance. A key component was in-house developed EUV pellicles with four times longer lifespan. The company intends to retrofit a 200 mm fab to produce proprietary EUV pellicles exclusively. These advancements could positively influence TSMC’s competitive edge and stock performance (TSM).

EUV efficiency boosts manufacturing capacity

TSMC’s enhanced EUV tool efficiency directly impacts its manufacturing capacity [1]. Higher throughput means more wafers produced per day per EUV tool [1]. TSMC reported it has doubled wafer output per EUV tool per day since 2019 [1]. These improvements allow TSMC to meet the increasing demand for advanced chips used in AI, data centers, and high-performance computing [3]. Increased manufacturing capacity strengthens TSMC’s position as a leading global semiconductor manufacturer and could positively influence its stock performance [1].

Geopolitical implications of technology leadership

TSMC’s technological advancements have geopolitical implications. As the leading manufacturer of advanced chips, TSMC’s capabilities are crucial for various countries [GPT]. The company’s ability to enhance EUV tool performance and reduce power consumption solidifies its lead [1]. Competing foundries, like SMIC, face challenges in acquiring advanced EUV technology due to export restrictions [9]. SMIC is testing domestic DUV lithography equipment to produce 7nm chips [9]. TSMC’s dominance in advanced manufacturing gives it a strategic advantage, impacting global tech supply chains [GPT].

TSMC’s focus on EUV technology provides a significant competitive advantage [1]. The company’s market share reached 70% in the second quarter of 2025, with revenue growth exceeding 40% [4]. TSMC’s 3nm process generated 22% of its revenue in the first quarter of 2025 [4]. Meanwhile, competitors like Samsung struggle with 3nm yields [4]. TrendForce reports that Apple, NVIDIA, AMD, and MediaTek are among the first customers for TSMC’s 2nm process, further cementing its market leadership [5]. These factors contribute to a positive outlook for TSMC’s stock (TSM) [1].

Challenges in euv pellicle technology

Despite TSMC’s advancements, challenges remain in EUV pellicle technology [8]. EUV users often avoid using pellicles due to potential damage from EUV light [8]. Pellicles may need replacing every few days, costing over $10,000 each [8]. Without pellicles, frequent mask inspections are required, reducing wafer output [8]. TSMC is addressing these challenges by developing its own EUV pellicles and retrofitting a fab for their exclusive production [1]. Overcoming these challenges is crucial for maintaining high yields and cost-effectiveness in EUV manufacturing [8].

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EUV lithography TSMC efficiency