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ASML Eyes Price Hikes Amid Chip Tool Demand
15 Jul
Summary
- ASML's CFO indicated potential price increases for chipmaking equipment.
- The company's advanced EUV tool capacity is booked until late 2027.
- Some Chinese customers accepted a 10% price increase on DUV tools.
ASML, a key supplier in the semiconductor industry, has indicated a strong possibility of raising prices for some of its chipmaking equipment. This strategic outlook follows the company's announcement that its production capacity for highly advanced Extreme Ultraviolet (EUV) tools is completely committed through the end of 2027.
The company's Chief Financial Officer, Roger Dassen, commented on Wednesday that the current market conditions provide ASML with enhanced "pricing power." He suggested a "pretty strong runway for potential price improvements going forward," noting that discussions with customers are actively underway to implement these changes over time.
Earlier reports indicated that ASML was encountering resistance from Taiwan Semiconductor Manufacturing Co. regarding price increases. However, the same reports suggested that certain Chinese customers have agreed to a 10% price increment on ASML's older, less advanced Deep Ultraviolet (DUV) tool lines.
