Report: ASML plans to raise the price of lithography machines, TSMC expresses opposition
The surge in AI chip demand provides the momentum for price increases. Analysts point out that the strong performance of ASML's major clients, including TSMC, Samsung, and SK Hynix, has created a market environment conducive to price hikes. The CFO stated that the production efficiency of Low NA EUV equipment continues to improve, offering "considerable room" for future price increases.
According to The Information, citing informed sources, ASML is planning to raise the prices of its chip manufacturing equipment. Its largest customer, TSMC, has expressed opposition to the Dutch lithography machine manufacturer's price increase plan.
ASML shares closed down 0.41% on Wednesday.
ASML manufactures extreme ultraviolet (EUV) lithography machines essential for producing advanced semiconductors. Demand for the company's equipment has continued to surge amid the artificial intelligence boom.
RBC Capital Markets analysts, including Srini Pajjuri, stated in a report on Monday that ASML's major customers, including TSMC, Samsung Electronics, and SK Hynix, have posted strong performances, making the current market environment “conducive to price increases.”
ASML CFO Roger Dassen also mentioned during the earnings call on Wednesday that the company may adjust pricing for its low numerical aperture (Low NA) EUV lithography machines. He stated:
“We continue to improve the manufacturing efficiency of Low NA EUV equipment, so this provides considerable room for potential price increases in the future.”
However, he added that, due to long equipment order delivery cycles, any price adjustments would not “be reflected in pricing effects immediately.”
On the same day, ASML also announced its second upward revision for full-year sales expectations this year and plans to expand production capacity to meet the ever-growing market demand. The company expects net sales in 2026 to reach €43 to €45 billion (about $49.2 billion to $51.5 billion), higher than analysts’ general forecasts.
Meanwhile, ASML said its customer Intel has started using the company’s most advanced lithography machines for chip production. ASML CEO Christophe Fouquet believes this demonstrates the equipment’s feasibility for commercial mass production—a positive sign.
Previously, TSMC had stated that ASML's most advanced High Numerical Aperture (High NA) EUV lithography machines are priced at over €350 million (about $410 million) each. The high cost makes them unsuitable for mass production and they are currently only used for research and development purposes.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Gold bounces off eight-week low; not out of the woods amid rising Fed hike bets
The "Endgame" of De-globalization: A Historic Battle for Metals!
Consulting giant Bain sounds the alarm: The global AI industry needs to achieve $6 trillion in annual revenue to sustain the “cash burn” of data centers
Bain stated that by 2031, the global artificial intelligence (AI) industry needs to achieve annual revenue of $6 trillion in order to justify the massive capital investment currently being made in building data centers worldwide.
Samsung Electronics' 2nm yield approaches 60%, aiming at TSMC to compete for tech giants' orders
The yield rate of Samsung Electronics' foundry division's 2nm process has increased to nearly 60%, a significant improvement from around 30% in mid-2023. After stabilizing the yield, Samsung has shifted its engineering focus to power consumption and heat dissipation optimization, and is accelerating the development of the more powerful second-generation process, SF2P, aiming for mass production within the year. Strategically, Samsung plans to supply 2nm chips to Tesla next year, using this as a stepping stone to enter the large-scale tech client market.
Crypto prices
More
