TSMC Increases Orders of EUV Tools Amid High Demand

[AleksandarK]

In the latest report by DigiTimes, it is said that TSMC has placed an order on 13 Extreme Ultra-Violet (EUV) machines from the Dutch company ASML. Thanks to the rapid increase in demand for its silicon, TSMC has developed plans for expansion across the next few years to satisfy the existing and upcoming customers. Usually, the company knows and can predict its demand for a future period. That is why TSMC is expanding its capacities with 13 additional ASML Twinscan NXE EUV scanners. These machines are set to be delivered by the course of 2021. It is unknown exactly when these machines are going to be delivered and installed at TSMC's facilities, however, it is fascinating that the demand for the company's capacities is ever-expanding. The price of single EUV machinery is as much as $175.75 million, so it is estimated that the expansion of capacity will cost TSMC a whopping $2.284,75 million. Despite the high pricing, the Return on Investment (ROI) is very high for TSMC.


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[TumbleGeorge]

I am sure that there are serious discounts when ordering 5+ or 10+ units in bulk, compared to buying only one machine.

 

[Korben]

The price of single EUV machinery is as much as $175.75 million, so it is estimated that the expansion of capacity will cost TSMC a whopping $2.284,75 billion

Check your math...

 

[laszlo]

I am sure that there are serious discounts when ordering 5+ or 10+ units in bulk, compared to buying only one machine.

if are, discounts are minimal considering that ASML can't face the demand; ASML is currently the only supplier of EUV lith. and the other manufacturers are way behind...Applied - the other big manufacturer has already lost the 1st position and seems they won't produce EUV...so ASML is in a strong position

 

[TumbleGeorge]

Despite the monopoly, I am sure that there are discounts and the price for 13 machines is not equal to the sum of the retail price for one machine.

 

[AleksandarK]

Check your math...

Excuse me?

175,75 times 13 (the number of EUV machines) = 2.284,75 billion USD.

 

[Korben]

Excuse me?

175,75 times 13 (the number of EUV machines) = 2.284,75 billion USD.

No: 175,75 million x 13 = 2.284,75 million USD (not billion)

 

[AleksandarK]

No: 175,75 million x 13 = 2.284,75 million USD (not billion)

Oh of course. I see. Thanks for pointing out. Fixed now

 

[Mouth of Sauron]

if are, discounts are minimal considering that ASML can't face the demand; ASML is currently the only supplier of EUV lith. and the other manufacturers are way behind...Applied - the other big manufacturer has already lost the 1st position and seems they won't produce EUV...so ASML is in a strong position

I'm sure that TSMC isn't paying that listed price in the first place. Industrial equipment is always customized to meet specific buyers requirement - and with that comes additional engineering work, testing that otherwise wouldn't be necessary, 3rd party parts and work etc. If they (TSMC) are buying several identical machines, it reduces price considerably. Since they are big customer, it reduces price (even for one machine)... My company routinely gets 15-20% discounts, sometimes more - and we are not major buyers.

That listed price is probably orientation-only, the real contract value is a trade secret. But no doubt the overall price is huge...

 

[bonehead123]

You go TSMC....bring it !!!!!!!

 

[Sybaris_Caesar]

Oh of course. I see. Thanks for pointing out. Fixed now

You europeans number point system is so confusing. Since in the OP, single machine costs 175.75 million then total cost would be 2,284.75 million or 2.28475 billion

OP has . or period for decimal point while @Korben and OP in later comments has , or comma.

After updating OP. Single price is using period for decimal while total price is using comma.