ASML Eyes Price Hike on Crucial Chip Gear

ASML Holding NV is reportedly planning price increases for its advanced chipmaking equipment, a move that has drawn pushback from its largest client, Taiwan Semiconductor Manufacturing Co. ASML, the sole provider of critical extreme ultraviolet (EUV) lithography machines necessary for advanced semiconductor manufacturing, is seeing a significant demand surge fueled by the artificial intelligence sector.

During a recent earnings call, ASML's Chief Financial Officer indicated potential price adjustments for the company's less advanced low NA EUV tools, citing increased productivity as a factor. While these price changes may not take effect immediately due to long order lead times, analysts suggest the strong financial performance of ASML's customers, including TSMC and Samsung Electronics Co., creates a favorable environment for price hikes.

ASML recently announced its annual sales forecast has been raised for the second time this year, projecting sales between €43 billion and €45 billion. The company is also expanding its production capacity to meet the escalating demand. Notably, ASML confirmed that Intel Corp. is utilizing its most advanced chip production machines, underscoring their commercial viability.