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ASML mulls price raise for chipmaking tools despite TSM resistance

T

tonyget

Well-known member

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ASML mulls price raise for chipmaking tools despite TSM resistance​


ASML plans to raise prices for its chipmaking equipment, The Information reported, citing people with knowledge of the matter.

The move is likely to bring ASML into conflict with Taiwan Semiconductor Manufacturing, the world’s biggest contract chipmaker and ASML’s largest customer, which recently complained about the Dutch company's high prices.

TSM is already pushing back against ASML's pricing plans, the report added.

ASML and TSM did not immediately respond to Seeking Alpha's request for comment.

ASML makes extreme ultraviolet, or EUV, lithography, and deep ultraviolet, or DUV, lithography systems, which are necessary for chipmakers to make advanced semiconductors. ASML is the only company in the world that builds and sells EUV lithography systems, and it is seeing a surge in demand driven by AI.

Earlier on Wednesday, ASML raised its full-year sales forecast for the second time this year, and said it plans to expand capacity after AI demand saw second-quarter results beat estimates. The company counts TSM, Samsung Electronics , and Intel among its top customers.

During the earnings call with analysts, ASML CFO Roger Dassen acknowledged the possibility of price increases, saying that the company has "a pretty strong runway for potential price improvements going forward" for its Low-NA machine, the older generation of its EUV lithography systems. Dassen added that "long order lead times" mean "that doesn't translate into pricing effects tomorrow."

EUV systems print the smallest and most intricate features in cutting-edge processors and memory chips. DUV systems use a less advanced form of light and print many of the less intricate layers in advanced chips but are also widely used to make chips used in cars and home appliances. AI servers also need mature-node chips made by DUV machines to regulate power and perform other supporting functions.

Some Chinese chipmakers have agreed to pay the higher prices for the DUV systems, the report added. However, TSM is resisting ASML's efforts to raise prices for either type of equipment.

DUV equipment is important to TSM's expansion of advanced packaging, another bottleneck in the AI supply chain. The company uses its advanced packaging technology Chip on Wafer on Substrate, or CoWoS, to assemble AI accelerators designed by companies like Nvidia and Google . The heavy demand for CoWoS gives TSM another reason to secure additional lithography capacity.

ASML sells its most advanced DUV systems for about $90M apiece, while its last-generation EUV machines cost around $220M, and the newest EUV models can reach up to $400M.

In April, it was reported that TSM was holding back on buying ASML's new high NA EUV machines due to higher costs.

China is particularly exposed to any DUV price increase. DUV systems are among the most capable lithography machines that Chinese manufacturers can still legally buy from ASML under U.S. export curbs, the report added.

For 2026, ASML expects about 20% of its total net sales to come from China. China came in third, accounting for 14% of the total net system sales of about €6.6B in the second quarter of 2026. South Korea l

 
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I have some news for you. TSMC says the tools are too expensive but the truth is that they are not yielding. This was exposed at SPIE earlier this year. The whole pricing thing started at the TSMC Tech Symposium during a lunch Q&A with Kevin Zhang. He was asked why TSMC was not using HNA-EUV for N2 and Kevin said the tools are too expensive and laughed. I was there and I know Kevin. After that it became the party line. It really was a nice competitive head fake.

You have to remember TSMC does really high HVM and has very high yield standards and a low risk strategy. That is why customers trust TSMC. I think it is totally possible that TSMC skips HNA-EUV all together. We will know with the next round of CAPEX because HNA-EUV is very expensive and TSMC will need dozens of the machines while Intel and Samsung play with a system or two doing a layer or two.
 
Daniel Nenni said:
I have some news for you. TSMC says the tools are too expensive but the truth is that they are not yielding. This was exposed at SPIE earlier this year. The whole pricing thing started at the TSMC Tech Symposium during a lunch Q&A with Kevin Zhang. He was asked why TSMC was not using HNA-EUV for N2 and Kevin said the tools are too expensive and laughed. I was there and I know Kevin. After that it became the party line. It really was a nice competitive head fake.

You have to remember TSMC does really high HVM and has very high yield standards and a low risk strategy. That is why customers trust TSMC. I think it is totally possible that TSMC skips HNA-EUV all together. We will know with the next round of CAPEX because HNA-EUV is very expensive and TSMC will need dozens of the machines while Intel and Samsung play with a system or two doing a layer or two.
Click to expand...

During the recent Annual Shareholders' Meeting in June, TSMC CEO C.C. Wei stated that TSMC had purchased High-NA EUV machine(s), although he did not reveal how many. He said that TSMC and ASML are working hard to improve the machine's performance to make the technology commercially viable.
 
tonyget said:

View attachment 4886​

ASML mulls price raise for chipmaking tools despite TSM resistance​


ASML plans to raise prices for its chipmaking equipment, The Information reported, citing people with knowledge of the matter.

The move is likely to bring ASML into conflict with Taiwan Semiconductor Manufacturing, the world’s biggest contract chipmaker and ASML’s largest customer, which recently complained about the Dutch company's high prices.

TSM is already pushing back against ASML's pricing plans, the report added.

ASML and TSM did not immediately respond to Seeking Alpha's request for comment.

ASML makes extreme ultraviolet, or EUV, lithography, and deep ultraviolet, or DUV, lithography systems, which are necessary for chipmakers to make advanced semiconductors. ASML is the only company in the world that builds and sells EUV lithography systems, and it is seeing a surge in demand driven by AI.

Earlier on Wednesday, ASML raised its full-year sales forecast for the second time this year, and said it plans to expand capacity after AI demand saw second-quarter results beat estimates. The company counts TSM, Samsung Electronics , and Intel among its top customers.

During the earnings call with analysts, ASML CFO Roger Dassen acknowledged the possibility of price increases, saying that the company has "a pretty strong runway for potential price improvements going forward" for its Low-NA machine, the older generation of its EUV lithography systems. Dassen added that "long order lead times" mean "that doesn't translate into pricing effects tomorrow."

EUV systems print the smallest and most intricate features in cutting-edge processors and memory chips. DUV systems use a less advanced form of light and print many of the less intricate layers in advanced chips but are also widely used to make chips used in cars and home appliances. AI servers also need mature-node chips made by DUV machines to regulate power and perform other supporting functions.

Some Chinese chipmakers have agreed to pay the higher prices for the DUV systems, the report added. However, TSM is resisting ASML's efforts to raise prices for either type of equipment.

DUV equipment is important to TSM's expansion of advanced packaging, another bottleneck in the AI supply chain. The company uses its advanced packaging technology Chip on Wafer on Substrate, or CoWoS, to assemble AI accelerators designed by companies like Nvidia and Google . The heavy demand for CoWoS gives TSM another reason to secure additional lithography capacity.

ASML sells its most advanced DUV systems for about $90M apiece, while its last-generation EUV machines cost around $220M, and the newest EUV models can reach up to $400M.

In April, it was reported that TSM was holding back on buying ASML's new high NA EUV machines due to higher costs.

China is particularly exposed to any DUV price increase. DUV systems are among the most capable lithography machines that Chinese manufacturers can still legally buy from ASML under U.S. export curbs, the report added.

For 2026, ASML expects about 20% of its total net sales to come from China. China came in third, accounting for 14% of the total net system sales of about €6.6B in the second quarter of 2026. South Korea l

Click to expand...

How kind of them 😂😂😂

Also calling TSMC , TSM, really irritate me for some reason 😁😁😁
 
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