Workflow
Exclusive look at the making of High NA, ASML's new $400 million chipmaking colossus
ASMLASML Holding(ASML) CNBC·2025-05-22 12:11

Core Insights - ASML has developed the High NA machine, the world's most advanced and expensive chipmaking machine, with a cost exceeding 400million,whichissettotransformmicrochipproduction[1][4][12]−ThefirstcommercialinstallationofHighNAoccurredatIntel′sOregonchipfabricationplantin2024,withonlyfivemachinesshippedtodate[3][4]−HighNAisexpectedtobeutilizedbyallASML′sEUVcustomers,includingmajorchipmakerslikeTSMC,Samsung,andMicron,enhancingchipproductionefficiencyandyield[4][21]TechnologyandDevelopment−HighNAmachinesarelargerthanadouble−deckerbusandconsistoffourmodulesmanufacturedindifferentlocations,requiringsignificantlogisticsfordelivery[2]−ThetechnologybehindHighNAallowsforhigherresolutionprojectionsofchipdesigns,reducingtheneedformultiplepatterningandimprovingyield[7][13]−ASML′sHighNAmachineshaveshownsignificantimprovementsoverpreviousEUVmachines,withIntelreportinga100400 million, which is set to transform microchip production [1][4][12] - The first commercial installation of High NA occurred at Intel's Oregon chip fabrication plant in 2024, with only five machines shipped to date [3][4] - High NA is expected to be utilized by all ASML's EUV customers, including major chipmakers like TSMC, Samsung, and Micron, enhancing chip production efficiency and yield [4][21] Technology and Development - High NA machines are larger than a double-decker bus and consist of four modules manufactured in different locations, requiring significant logistics for delivery [2] - The technology behind High NA allows for higher resolution projections of chip designs, reducing the need for multiple patterning and improving yield [7][13] - ASML's High NA machines have shown significant improvements over previous EUV machines, with Intel reporting a 100% increase in reliability and Samsung noting a 60% reduction in cycle time [6][7] Market Position and Strategy - ASML holds a dominant position in the EUV lithography market, being the exclusive manufacturer of these machines, which are essential for producing advanced microchips [4][5] - The company sold 44 EUV machines in 2024, with a starting price of 220 million, while its older DUV machines accounted for 60% of its business [16][17] - ASML's sales to China peaked at 49% of its business in Q2 2024, but are expected to normalize to 20%-25% in 2025 due to U.S. export controls on EUV technology [17][18] Future Outlook - ASML plans to ship at least five more High NA systems in the current year and aims to ramp up production capacity to 20 machines in the coming years [24] - The company is also developing the next generation of machines, Hyper NA, expected to be needed between 2032 and 2035, with draft optical designs already in progress [23][24] - ASML is establishing a training center in Arizona to train 1,200 individuals annually on EUV and DUV technologies, addressing the growing demand for skilled labor in the semiconductor industry [23]