Taiwan Semi Flags High Costs of ASML's Latest Chip Machines
Portfolio Pulse from Anusuya Lahiri
Taiwan Semiconductor Manufacturing Co (TSMC) has raised concerns about the high costs of ASML's new advanced chip machines, which cost €350 million ($380 million) each. TSMC plans to use older EUV technology for its upcoming A16 node technology due to economic considerations. TSMC is also building an $11 billion European chip plant in Dresden, Germany. TSMC reported a 16.5% revenue growth in Q1, surpassing estimates. Big tech companies like Microsoft, Meta, and Alphabet committed over $32 billion in AI infrastructure in Q1.
May 15, 2024 | 12:32 pm
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NEUTRAL IMPACT
ASML's new advanced chip machines are facing criticism from TSMC due to their high costs. Despite this, ASML shares are trading higher, indicating market confidence.
While TSMC's concerns about the high costs of ASML's new machines could impact future sales, the current market reaction is positive, with shares trading higher.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Alphabet, along with other big tech companies, committed over $32 billion in AI infrastructure in Q1, indicating strong investment in future technologies.
Alphabet's significant investment in AI infrastructure suggests a positive outlook for the company's future technological advancements and market position.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Meta Platforms, along with other big tech companies, committed over $32 billion in AI infrastructure in Q1, indicating strong investment in future technologies.
Meta's significant investment in AI infrastructure suggests a positive outlook for the company's future technological advancements and market position.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Microsoft, along with other big tech companies, committed over $32 billion in AI infrastructure in Q1, indicating strong investment in future technologies.
Microsoft's significant investment in AI infrastructure suggests a positive outlook for the company's future technological advancements and market position.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
TSMC has expressed concerns about the high costs of ASML's new chip machines and plans to use older technology for its A16 node. Despite this, TSMC reported a 16.5% revenue growth in Q1, surpassing estimates.
TSMC's decision to use older technology for its A16 node due to high costs of ASML's new machines may raise concerns about future tech advancements. However, strong Q1 revenue growth and ongoing projects like the European chip plant indicate positive short-term outlook.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100