Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) continues to expand its advanced manufacturing capabilities as rising demand for artificial intelligence chips pushes the company toward more efficient and cost-effective production technologies.
The contract chipmaker is working with ASML Holding N.V. (NASDAQ:ASML) to develop larger EUV photomasks aimed at boosting factory productivity and lowering the cost of producing advanced chips.
Taiwan Semiconductor, ASML Target 12-Inch EUV Masks
The companies launched an industry-wide initiative to transition from the current 6-inch photomasks to larger 12-inch masks for High NA Extreme Ultraviolet lithography.
High NA EUV will initially enter production using existing 6-inch masks. Taiwan Semiconductor and ASML expect the eventual shift to 12-inch masks to increase scanner productivity, eliminate stitching constraints and make future generations of leading-edge chips more cost-effective.
The companies aim to establish a 12-inch mask pilot line by 2031, paving the way for 12-inch High NA lithography systems to enter advanced-node production by 2033.
Major semiconductor ecosystem partners and suppliers attended the initiative’s Sept. 7 launch and expressed interest in supporting the transition.
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Plans High NA Production From 2030
Taiwan Semiconductor plans to deploy ASML’s High NA technology in high-volume manufacturing for advanced nodes beginning in 2030.
The chipmaker expects more layers to require High NA EUV as technology nodes advance, driven primarily by increasingly complex transistor architectures for artificial intelligence applications.
ASML CEO Christophe Fouquet said the industry will progressively adopt High NA EUV, first with existing masks and later with larger masks that can improve scanner productivity and support demand for smaller, faster and more energy-efficient chips.
Taiwan Semiconductor Chairman and CEO C.C. Wei highlighted industry collaboration as critical to reducing barriers to advanced technology.
Prior reports indicated Taiwan Semiconductor’s plans to delay mass-production use of ASML High-NA EUV systems until at least 2029, with Co-Chief Operating Officer Kevin Zhang citing the tools’ high cost and saying Taiwan Semiconductor’s A13 node does not require them.
Taiwan Semiconductor Stock Performance And Technical Analysis
Taiwan Semiconductor stock traded higher Tuesday in premarket trading, bucking weakness in U.S. stock futures. Nasdaq futures slipped 0.09%, while S&P 500 futures fell 0.32%.
Taiwan Semiconductor shares at $431.00 are trading 2.6% above their 20-day simple moving average of $419.94 and 2.5% above their 50-day SMA of $420.41.
The stock is also 15.6% above its 200-day SMA of $372.83. That suggests the longer-term trend remains bullish.
However, the 20-day SMA remains below the 50-day SMA. That bearish crossover suggests short-term momentum has yet to fully recover.
The longer-term picture remains stronger. The 50-day SMA is above the 200-day SMA.
The moving average convergence divergence indicator is also above its signal line, while the histogram is positive. Both signals point to improving momentum.
Resistance sits near $436.00. Support is around $405.50.
Analyst Outlook
Taiwan Semiconductor carries a consensus Buy rating with an average price forecast of $547.38.
Stifel initiated coverage with a Buy rating and a $515 price forecast on Sept. 2. Bernstein maintained an Outperform rating and raised its price forecast to $554 on Aug. 11. Needham maintained a Buy rating and raised its price forecast to $530 on July 27.
Taiwan Semiconductor Top ETF Exposure
- VanEck Semiconductor ETF (NASDAQ:SMH): 9.28% Weight
- Brown Advisory Flexible Equity ETF (NASDAQ:BAFE): 5.96% Weight
- Harbor International Compounders ETF (NYSE:OSEA): 6.77% Weight
Significance: Because TSM carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
Price Action
TSM Stock Price Activity: Taiwan Semiconductor shares were up 0.49% at $431.00 during premarket trading on Tuesday, according to Benzinga Pro data.
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