TSMC Is Not Happy! ASML Hints at Raising Prices for Lithography Machines — Foreign Media Reports TSMC's Discontent and Resistance

The AI wave is fueling robust semiconductor demand, leading to a supply shortage in chip production capacity and causing ASML, the global leader in lithography equipment, to see soaring profits. However, market reports indicate ASML is considering raising prices. CFO Roger Dassen stated, 'We are currently discussing these issues with our customers.' The U.S. media outlet The Information further reported that TSMC, ASML's largest customer, opposes the price increase and is unwilling to easily compromise.

According to the report, ASML CFO Dassen stated during the earnings call that the current industry environment gives the company 'stronger pricing power,' providing a solid foundation for future price increases. 'We are currently discussing these issues with our customers, and over time, you should see the results of price improvements,' he said.

Was TSMC already feeling prices were too high? Reports suggest TSMC is dissatisfied with ASML's price hikes.

The report notes that ASML has recently informed customers, including Chinese chipmakers, that deep ultraviolet (DUV) lithography machines will increase in price by at least 10%. Some Chinese semiconductor manufacturers have already agreed, but TSMC opposes simultaneous price hikes for extreme ultraviolet (EUV) equipment.

According to sources, TSMC had already been dissatisfied with ASML's high prices and is now resisting price increases for critical equipment such as EUV and DUV, refusing to compromise easily. TSMC's strengthened cost-control stance is already reflected in its procurement strategy for next-generation equipment.

Why can Chinese firms accept the price hikes? Because export controls leave them with no choice.

The report states that ASML's most advanced High-NA EUV lithography machines cost as much as $400 million per unit. TSMC Chairman Mark Liu revealed during the June earnings call that TSMC has already purchased them, but due to cost considerations, they have not been introduced into mass production. In contrast, the previous-generation EUV machines cost about $220 million and are currently TSMC's workhorses. Therefore, when ASML considers price hikes, TSMC pushes back, as any price adjustment would impact semiconductor manufacturers' costs.

Meanwhile, high-end DUV equipment sells for close to $90 million, but Chinese manufacturers are relatively more accepting of DUV price increases. The main reason is that due to export controls, Chinese firms cannot access advanced equipment, making DUV the most advanced lithography machine currently available for purchase.

More exclusive insights from Feng Media: · Samsung's 'U.S. 2-nanometer plant' successfully produces Tesla chips! TSMC also secures a share of Musk's orders · Is the 'hopeless underdog' image gone? Report reveals Intel's two key technologies see 'yield explosion' — NVIDIA, Microsoft, and OpenAI all placing orders · Not just focusing on AI servers! Foxconn invests an additional $290 million in 'this company' to enter the humanoid robotics business