Taiwan Semiconductor Manufacturing Company Delays ASML Equipment Adoption Until 2029

Taiwan Semiconductor Manufacturing Company announced it will delay the adoption of ASML Holding NV's latest high-NA EUV equipment until 2029. The company cited the high cost of the machines, which are approximately $410 million each, as the primary reason for the postponement to manage expenses.

Kevin Zhang, co-COO of Taiwan Semiconductor Manufacturing Company, characterized the high-NA EUV machines as being among the most premium offerings in the industry. The decision caused ASML Holding NV stock to initially drop 4% before recovering to a 1% decline by mid-afternoon. While the iShares Semiconductor ETF saw a slight decline, the Philadelphia Semiconductor Index maintained its momentum with consecutive record closes.

Taiwan Semiconductor Manufacturing Company reported stronger-than-expected profitability for the first quarter, yet its decision on equipment timing continues to influence technology adoption and pricing strategies across the broader semiconductor industry.