AMSTERDAM, May 14 (Reuters) - Taiwanese chipmaker TSMC

does not necessarily need to use ASML's next

generation "High NA EUV" machines for its new chip manufacturing

technology called A16, which is under development for 2027, an

executive said on Tuesday.

The High NA lithography tools are expected to help shrink

chip designs by up to two-thirds, but chipmakers must weigh that

benefit against a higher cost and whether older tech may be more

reliable and good enough.

Speaking at a conference in Amsterdam, Kevin Zhang said that

it is possible that the company's A16 plants could be designed

to accommodate the technology, but that is not certain. TSMC is

the largest user of ASML's regular EUV machines.

"I like the technology but I don't like the sticker price",

Zhang told reporters.

High NA tools are expected to cost more than 350 million

euros ($378 million) each, from 200 million euros from ASML's

regular EUV machines.

ASML, Europe's largest tech firm, dominates the market for

lithography systems, machines that use beams of light to help

create the circuitry of chips.

Lithography is one of many technologies chipmakers use to

improve chips, but it is a limiting factor in how small the

features on a chip can be - smaller means faster and more energy

efficient.

Intel last month said it had become the first company to

assemble one of ASML's new High NA EUV lithography tools, as an

important part of the U.S. computer chip maker's drive to

outshine rivals.

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