ASML celebrated an important milestone last week—the company's social media account shared news about their third generation extreme ultraviolet (EUV) lithography tool reaching an unnamed customer: "chipmakers have a need for speed! The first Twinscan NXE:3800E is now being installed in a chip fab. 🔧 With its new wafer stages, the system will deliver leading edge productivity for printing advanced chips. We're pushing lithography to new limits." The post included a couple of snaps—ASML workers were gathered in front of a pair of climatized containers, and Peter Wennink (President and CEO) and Christophe Fouquet (EVP and CBO) thanked staff at company HQ.

The Twinscan NXE:3800E is ASML's latest platform from a series of 0.33 numerical aperture (Low-NA) lithography scanners. Information is scarce—the company has not yet published a 3800E product page. The preceding model—Twinscan NXE:3600D—supports EUV volume production at 3 and 5 nm. ASML roadmaps imply that the Twinscan NXE:3800E has been designed to produce chips on 2 and 3 nm-class technologies. The company's cutting-edge High-NA extreme ultraviolet (EUV) chipmaking tools (High-NA Twinscan EXE) are expected to cost around $380 million—reports from last month point to a possible $183 million price point for "existing Low-NA EUV lithography systems." Another Low-NA EUV machine is reported to be lined up for a possible 2026 release window—ASML's next-gen Twinscan NXE:4000F model will co-exist alongside emerging (pricier) High-NA solutions.

Chipmaking manufacturing equipment giant ASML has expressed concerns about staying in the Netherlands and considering expansion into other countries due to its home country's capped possibilities. On Wednesday, ASML executives met with Netherlands Prime Minister Mark Rutte to discuss the company's growth plans. The meeting, however, failed to fully resolve ASML's concerns surrounding the country's stance on skilled foreign labor, leaving uncertainty over the tech giant's expansion in its home market. Being one of the world's largest suppliers to chipmakers, ASML has said it needs to double its operations in the following decade to meet soaring demand. However, the company is hitting roadblocks in the Netherlands, including difficulty obtaining building permits, constraints on the electrical grid, transportation bottlenecks, and a need for supporting infrastructure like hospitals, schools, and housing. A key issue is the Netherlands' ability to attract scarce foreign engineering talent, with over 40% of ASML's Dutch workforce being non-Dutch. Recent parliamentary motions to cap international students and scrap a tax break for skilled migrants have met with criticism from ASML and other tech employers.

In an effort dubbed "Operation Beethoven," the Dutch government is scrambling to address ASML's concerns and prevent the company from expanding abroad, having already seen multinationals like Shell and Unilever leave their home country in recent years. However, ASML CEO Peter Wennink said that while the company prefers to grow in the Netherlands, it can do so elsewhere if needed. The situation comes amid pressure from the US for allies like the Netherlands to tighten restrictions on China's further access to semiconductor technology. As the sole producer of extreme ultraviolet (EUV) lithography machines crucial for advanced chipmaking, like High-NA and Low-NA, ASML holds strategic importance beyond just economics. With a new right-wing Dutch government being formed, whether a compromise can be reached to ensure ASML's continued growth in the Netherlands remains to be seen. The tech giant's decision could significantly affect the Dutch economy and its position in the global chip industry.

ASML has revealed that its cutting-edge High-NA extreme ultraviolet (EUV) chipmaking tools, called High-NA Twinscan EXE, will cost around $380 million each—over twice as much as its existing Low-NA EUV lithography systems that cost about $183 million. The company has taken 10-20 initial orders from the likes of Intel and SK Hynix and plans to manufacture 20 High-NA systems annually by 2028 to meet demand. The High-NA EUV technology represents a major breakthrough, enabling an improved 8 nm imprint resolution compared to 13 nm with current Low-NA EUV tools. This allows chipmakers to produce transistors that are nearly 1.7 times smaller, translating to a threefold increase in transistor density on chips. Attaining this level of precision is critical for manufacturing sub-3 nm chips, an industry goal for 2025-2026. It also eliminates the need for complex double patterning techniques required presently.

However, superior performance comes at a cost - literally and figuratively. The hefty $380 million price tag for each High-NA system introduces financial challenges for chipmakers. Additionally, the larger High-NA tools require completely reconfiguring chip fabrication facilities. Their halved imaging field also necessitates rethinking chip designs. As a result, adoption timelines differ across companies - Intel intends to deploy High-NA EUV at an advanced 1.8 nm (18A) node, while TSMC is taking a more conservative approach, potentially implementing it only in 2030 and not rushing the use of these lithography machines, as the company's nodes are already developing well and on time. Interestingly, the installation process of ASML's High-NA Twinscan EXE 150,000-kilogram system required 250 crates, 250 engineers, and six months to complete. So, production is as equally complex as the installation and operation of this delicate machinery.