Core Viewpoint - TSMC is advancing towards 2nm and below nodes, facing manufacturing challenges, and has decided to shift from purchasing ASML's high-NA EUV lithography machines to using photomask films for production [2][3]. Group 1: Manufacturing Strategy - TSMC plans to begin mass production of 2nm wafers by the end of 2025, transitioning to the 1.4nm node thereafter, with a foundational investment of up to NT$1.5 trillion (approximately US$49 billion) [2]. - The company is rapidly advancing its 1.4nm process development at its Hsinchu facility and has acquired 30 standard EUV lithography machines to meet increasing demand from clients like Apple [2][3]. Group 2: Equipment Decisions - TSMC has opted not to purchase ASML's high-NA EUV lithography machines, which cost US$400 million each, due to perceived value discrepancies and the limited annual production capacity of these machines (only 5 to 6 units) [3]. - Instead, TSMC is focusing on using photomask protective films to mitigate contamination risks during the manufacturing process, despite the high costs and complexities associated with this alternative [3].