Ming-Chi Kuo noted that ASML is in rumors to increase the price of its chip-making tools for TSMC. But that won’t be the exact case. Perhaps, the Taiwanese semiconductor firm will likely bargain with ASML and suppress it for price reductions.

TSMC is one of the biggest customers of ASML. The latter used to sell large lithography machines to the former to print circuit patterns onto silicon wafers.

Wall Street stated a few points that hint at why ASML could raise the price of its chip equipment for TSMC. Firstly, ASML has planned to achieve €30 to €40 billion in revenue range by 2025. The firm is taking new steps to enhance its sales by next year.

Secondly, TSMC and other customers of the Dutch chip equipment supplier are looking forward to more advanced chipmaking processes by next year. This may ultimately increase the demand for ASML’s highest-end EUV tools pricing €350 million.

Lastly, ASML is seeing a major decline in semiconductor stocks for the time being. Customers like Intel and Samsung didn’t make much progress. But TSMC has recently reported blockbuster earnings with 54% profit. This could be a reason to hike chip equipment prices for the Taiwanese semiconductor firm.

TSMC is highly dependent on ASML for chipmaking tools. Thus, the Dutch firm could take advantage of this point to some extent by raising its price. However, the U.S. government may subsidize this dealing with better profits on both sides.

Note that neither ASML nor TSMC has confirmed this news so far. Hence, it is better to take this rumor with a grain of salt at present.

ASML rumored to increase chip-making tool price for TSMC (Image Credits: ASML)

The post ASML rumored to increase chip-making tool price for TSMC appeared first on Huawei Central.

Another vital reason behind this establishment is to promote lithography tools development. The Chinese manufacturer focuses on increasing the wafer fab equipment amount which is quite essential in the making of advanced chipsets.

Huawei relied upon global chipmakers like ASML, Canon, and Nikon to produce high-end processors. Although the U.S. export trading rules have made it difficult for the company to access advanced chipmaking tools and equipment from foreign markets.

Thus the company plans to make powerful equipment that can match the level of the above-listed chipmakers’ tools. To do so, Huawei has doubled the salary of its employees compared to others and is hiring more talented workers for its workforce.

But the Chinese OEM is also making its employees work ‘007’ (working from midnight to midnight, seven days a week), which has become a big challenge as well as a demanding work environment for the existing employees in the industry.

Huawei chips made by Brute-Force system

Huawei Chip Equipment R&D Center – Shanghai

The inputs reveal that the company is setting up its new R&D center in the western Qingpu district of Shanghai. This area eventually has the best facilities for Huawei’s chip design, HiSilicon T, as well as R&D centers for wireless techs and smartphones.

Huawei put on a total investment of $1.66 billion for this center and it has an area of 224 football fields. Once established, it can make room for 35000 employees.

It is worth noting that the development of the respective center for making lithography tools will help the company overcome the challenges of demand for essential chip-making tools, especially in terms of 16/12nm processes and smaller ones.

The Chinese OEM is associating with local suppliers and other partners to progress in the chip production segment. These efforts may ultimately aid the firm in achieving self-sufficiency in semiconductor projects.

Huawei R&D center Shanghai (Image Credits: Huawei)

(Source – Nikkei Asia)

The post Huawei reportedly setting up massive chip equipment R&D center in Shanghai appeared first on Huawei Central.