By Yang Jie

Taiwan Semiconductor Manufacturing isn't falling behind in next-generation chipmaking, its CEO said, dismissing concerns that it's at a disadvantage to rivals already adopting ultra-expensive equipment to make cutting-edge chips.

Speaking at an annual shareholders' meeting, TSMC Chief Executive C.C. Wei clarified the chip giant's position on the machines made exclusively by Dutch company ASML, and seen as critical for pushing the limits of microchip manufacturing.

"The fact is, we have already purchased that equipment, and our team is actively conducting related research and development. It is simply not yet being deployed for volume mass production," Wei said Thursday.

When pressed by a shareholder to say how many units the Taiwanese company has bought from ASML, Wei declined to give a specific figure.

ASML's lithography machines, which use light to etch features onto silicon wafers, have become a prized asset for makers of powerful AI chips. The most advanced version of the technology, known as High-NA EUV, can print even smaller, denser transistor configurations.

That's a major step up technologically, but it comes at a price.

While High-NA EUV offers unparalleled resolution, it introduces a massive commercial hurdle because each machine would cost way more than then current-generation systems.

TSMC competitors like Intel are early adopters of the technology, which can cost up to $400 million.

For Wei, the price tag is a massive hurdle.

He told shareholders that right now, TSMC is focused on figuring out how to make the machines run more efficiently to lower manufacturing costs. The company will only use the equipment for everyday factory production once the numbers make sense and it is financially profitable to do so, he added.

The remarks build on statements from TSMC executive Kevin Zhang in April that sparked a selloff in ASML shares.

Speaking at the company's technology forum, Zhang said that some of TSMC's current goals remain achievable using standard EUV tools, adding that the new equipment is simply "very expensive".

Write to Yang Jie at jie.yang@wsj.com

(END) Dow Jones Newswires

June 03, 2026 23:52 ET (03:52 GMT)

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