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Two different roles in the chip industry

Equipment makers and foundries occupy different parts of semiconductor production.

Summary

Equipment makers and foundries occupy different parts of semiconductor production.

Key points

  • ASML develops lithography systems used in semiconductor manufacturing. [1]
  • TSMC is a dedicated semiconductor foundry serving customers that design integrated circuits. [2]

ASML

ASML develops lithography systems used in semiconductor manufacturing. [1]

Lithography transfers circuit patterns onto semiconductor wafers. ASML sits in the equipment layer of the chip industry, distinct from companies that design chips or manufacture them for clients. [1]

TSMC

TSMC is a dedicated semiconductor foundry serving customers that design integrated circuits. [2]

Its foundry model separates chip manufacturing from customer product design. The company also describes advanced packaging technologies alongside its manufacturing services. [2]

Comparison and scope

SubjectRole / categorySource
ASMLSemiconductor equipment[1]
TSMCSemiconductor manufacturing[2]

Related entities and concepts

ASML ↗

TSMC ↗

Questions and answers

How does ASML differ from a semiconductor foundry?

ASML supplies manufacturing equipment; a foundry uses manufacturing processes to produce chips for customers.

What does TSMC mean by a dedicated semiconductor foundry?

TSMC manufactures integrated circuits for customers rather than competing with them through its own branded chip products.

Sources and editorial notes

  1. ASML — official source ↗
  2. TSMC — official source ↗

Compiled 23 October 2026. This is an explanatory research note, not a report of a new event. No event timeline is asserted.