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ASML has announced the opening of a new branch office in Nanjing, China where its major client TSMC is constructing a new 12-inch wafer plant.
TSMC is on track to complete the construction of its new 12-inch fab in Nanjing, which will directly enter 16nm chip production in 2018.
Being among TSMC’s major equipment suppliers, ASML will start to supply lithography systems and services to the foundry’s new Nanjing facility in September 2017. ASML indicated its teams in the Netherlands, Taiwan and China will provide their fully support to help the foundry ramp the new fab on schedule.
ASML also expressed optimism about demand coming from China’s semiconductor industry, with plans to further expand its operations locally. In China, there are already more than 20 new fab projects under construction or soon to be under construction since 2016, ASML identified.
In addition, ASML recently disclosed it landed eight additional orders for extreme ultraviolet (EUV) lithography systems in the second quarter of 2017 bringing the total backlog to 27 EUV systems valued at around EUR2.8 billion (US$3.26 billion). Demand for EUV tools is set to drive ASML’s expected sales growth of about 25% in 2017, according to the company.
Samsung, TSMC, Intel and Globalfoundries are reportedly among the chipmakers capable of affording EUV lithography and adopting the technology for their 7nm nodes and beyond.
Samsung has already announced its first-generation 7nm process will adopt EUV lithography technology and is slated for launch in 2018. Both TSMC and Globalfoundries disclosed plans to have their enhanced 7nm nodes use EUV with volume production slated for 2019.
ASML looking to expand its operations in China
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