Semiconductor equipment maker ASML Holding (NASDAQ:ASML) is working to develop advanced lithography machines to serve the next-generation chip industry.
The Netherlands-based company and its exclusive optics partner Carl Zeiss are studying designs for machines that could print circuits with a resolution like 5 nanometers in a single exposure, Nikkei Asia reported on Thursday, citing ASML executive vice president Jos Benschop.
They expect the technology to meet the industry’s needs from 2035 and beyond.
Also Read: ASML Bets Big On High-Powered Chip Tools As Taiwan Semiconductor, Intel, Micron Line Up
Dutch giant ASML’s stock has faced significant headwinds, plunging over 27% in the last 12 months. This decline is largely attributable to mounting geopolitical tensions and pervasive macroeconomic uncertainty impacting the global technology sector.
The company has seen its market value diminish by over $130 billion within a year, primarily due to export restrictions to China imposed by the Dutch government, influenced by U.S. pressure aimed at limiting China’s access to advanced chip technology. Additionally, broader uncertainty surrounding U.S. tariffs on goods from various countries has contributed to investor apprehension.3
Consequently, multiple Wall Street firms have downgraded their ratings for ASML and revised their price forecasts, reflecting concerns about the company’s immediate growth prospects given the restrictive trade environment.
Meanwhile, Taiwan Semiconductor Manufacturing Co (NYSE:TSM) and other chipmakers are still assessing ASML’s high numerical aperture (NA) machines for use in their most advanced nodes.
Despite the nearly $400 million price tag, almost double that of other equipment, these machines have yet to prove faster or more beneficial than existing chip fabrication tools.
In a notable development, Kevin Zhang from Taiwan Semiconductor rejected using ASML’s high-NA machines for its A16 node, citing cost concerns, and instead considered using low-NA EUV machines to achieve scaling advantages.
Conversely, Intel Corp (NASDAQ:INTC) plans to adopt the High-NA EUV machine for its 14A process to strengthen its contract chip business and better compete with Taiwan Semiconductor. However, the company noted that customers could still opt for older, well-tested technologies.
Price Action: ASML stock concluded Wednesday’s trading session higher by 0.23%, closing at $815.24.
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