The company behind the world’s most advanced chipmaking machines may soon charge even more for them.
According to a report by The Information, Dutch semiconductor equipment giant ASML is considering raising prices for some of its chipmaking systems. The move has reportedly drawn resistance from its biggest customer, Taiwan Semiconductor Manufacturing Company (TSMC), setting up what could become one of the industry’s most closely watched negotiations.
While neither company has officially commented on the report, the discussion reflects an important reality. As demand for AI chips continues to surge, the value of the equipment needed to manufacture them has never been higher.
Why ASML Holds So Much Power
ASML occupies a unique position in the semiconductor industry.
The company is the only manufacturer of Extreme Ultraviolet (EUV) lithography machines, which are essential for producing the world’s most advanced semiconductors. Without these systems, chipmakers cannot manufacture cutting edge processors used in AI, high performance computing, advanced smartphones, and data centers.
That gives ASML a level of pricing power that few technology companies enjoy.
Why Prices Could Go Higher
Several factors are working in ASML’s favor.
Strong customer profitability
Major chip manufacturers such as TSMC, Samsung Electronics, Intel, and SK Hynix are benefiting from the global AI boom. As demand for advanced chips continues to rise, these companies are investing heavily in expanding manufacturing capacity.
Analysts at RBC Capital Markets recently noted that the current environment is well suited for ASML to improve pricing because customers are generating strong profits while racing to secure production capacity.
Improving machine performance
ASML’s Chief Financial Officer Roger Dassen also hinted at possible price increases during the company’s latest earnings call.
He explained that ASML continues improving the productivity of its Low NA EUV machines. If customers can manufacture more chips using the same equipment, those machines become more valuable, giving ASML room to charge higher prices over time.
He also emphasized that the company’s long order backlog means any pricing changes would take time to appear in financial results rather than having an immediate impact.
TSMC’s Pushback Is Understandable
For customers, higher prices are not an easy decision.
TSMC has previously indicated that ASML’s newest High NA EUV systems cost more than €350 million per machine. The company currently uses these systems primarily for research because of their extremely high cost and has suggested they are still too expensive for large scale commercial production.
If ASML raises prices further, customers will have to weigh whether the productivity improvements justify the additional investment.
That makes pricing discussions particularly significant, even between long term partners.
ASML’s Business Continues to Strengthen
The pricing discussion comes alongside another strong quarter for ASML.
The company recently:
- Raised its annual sales forecast for the second time this year
- Now expects 2026 revenue between €43 billion and €45 billion
- Plans to increase production capacity to meet growing customer demand
- Continues benefiting from AI driven semiconductor investments across the industry
These forecasts came in comfortably ahead of many analyst expectations, reinforcing how strong demand remains despite ongoing supply constraints.
Intel Adds Another Positive Signal
ASML also revealed that Intel has started using its most advanced High NA EUV system for actual chip production rather than only research.
Chief Executive Officer Christophe Fouquet described this as an encouraging sign that the newest generation of machines is moving toward commercial viability.
This is important because wider commercial adoption of High NA systems could create another major growth driver for ASML over the coming years.
What This Means for Investors
The debate over pricing is about much more than the cost of one machine.
It reflects the growing importance of semiconductor manufacturing equipment in the AI era.
ASML remains one of the few companies with technology that customers simply cannot replace. At the same time, chipmakers are investing hundreds of billions of dollars to expand AI infrastructure while trying to control capital spending.
Whether ASML ultimately raises prices or reaches a compromise with customers like TSMC, the outcome will offer valuable insight into the balance of power across the global semiconductor supply chain.
One thing is already clear. As AI demand continues to accelerate, the companies that enable chip production are becoming just as strategically important as the companies designing the chips themselves.