Intel is the first company to purchase ASML's new generation lithography machine, priced at a staggering €350 million (approximately $373 million). Despite certain financial and engineering risks, the equipment is expected to enable the production of next-generation chips with smaller footprints and faster processing speeds.
Mark Phillips, Intel's lithography director, expressed strong confidence in their decision: "We recognized the price of these devices when deciding to purchase them. If we didn't believe these devices were worth it, we wouldn't buy them."
ASML, Europe's largest tech company, dominates the lithography machine market. Lithography machines utilize beams of light to aid in the manufacturing of chip circuits.
Lithography technology is one of the core technologies chip manufacturers employ to enhance chip performance, determining the minimum width of transistors on the chip—the smaller the transistor width, the faster the chip's processing speed and the higher its efficiency.
The new generation High-NA lithography tools are expected to significantly reduce the width of transistors to one-third of the original size. However, chip manufacturers must balance this substantial cost increase and technological advantage while considering whether existing technologies are reliable enough to meet demand.
Intel's Missteps
Intel's determination to adopt High-NA EUV lithography machines first was not arbitrary.
Although Intel had been involved in developing EUV lithography technology, it lagged behind its competitor TSMC in deploying ASML's first EUV lithography machine. Intel CEO Pat Gelsinger admitted this was a serious mistake.
Meanwhile, Intel focused on developing the so-called "multiple patterning" technology, which essentially involves using lower-resolution lithography machines to pattern wafers multiple times to achieve the same effect as high-end machines.
Phillips stated, "That's when we started to run into trouble."
Despite the lower cost of traditional DUV lithography machines, the complex "multiple patterning" operations were time-consuming and decreased chip yield, slowing down Intel's business development.
Intel is currently using first-generation EUV lithography machines in manufacturing the most critical chip components. Phillips anticipates a smoother transition to High-NA EUV lithography machines.
He said, "Now that we have the long-awaited new generation EUV lithography machines, we don't want to repeat past mistakes."
Phillips also noted that this new machine, located in Hillsboro, Oregon, is expected to be fully operational later this year.
Intel plans to use this massive machine to develop 14A generation chips by 2025, with initial production expected to start in 2026 and full commercial production by 2027.
ASML, in its latest financial report released this week, stated that it has begun shipping the second set of High-NA EUV lithography machines to a customer. This customer could be TSMC or Samsung.
Given that the transportation and installation of these large-scale equipment may take up to six months, Intel's move has given it a head start.
