ASML rumored to increase chip-making tool price for TSMC

ASML is now rumored to raise the price of chip-making tools for TSMC. The price increment strategy will ultimately aid the chip equipment supplier in reaching its revenue goal by next year. But TSMC could make efforts to prevent this cost rise.

Ming-Chi Kuo noted that ASML is in rumors to increase the price of its chip-making tools for TSMC. But that won’t be the exact case. Perhaps, the Taiwanese semiconductor firm will likely bargain with ASML and suppress it for price reductions.

TSMC is one of the biggest customers of ASML. The latter used to sell large lithography machines to the former to print circuit patterns onto silicon wafers.

Wall Street stated a few points that hint at why ASML could raise the price of its chip equipment for TSMC. Firstly, ASML has planned to achieve €30 to €40 billion in revenue range by 2025. The firm is taking new steps to enhance its sales by next year.

Secondly, TSMC and other customers of the Dutch chip equipment supplier are looking forward to more advanced chipmaking processes by next year. This may ultimately increase the demand for ASML’s highest-end EUV tools pricing €350 million.

Lastly, ASML is seeing a major decline in semiconductor stocks for the time being. Customers like Intel and Samsung didn’t make much progress. But TSMC has recently reported blockbuster earnings with 54% profit. This could be a reason to hike chip equipment prices for the Taiwanese semiconductor firm.

TSMC is highly dependent on ASML for chipmaking tools. Thus, the Dutch firm could take advantage of this point to some extent by raising its price. However, the U.S. government may subsidize this dealing with better profits on both sides.

Note that neither ASML nor TSMC has confirmed this news so far. Hence, it is better to take this rumor with a grain of salt at present.

ASML rumored to increase chip-making tool price for TSMC (Image Credits: ASML)