ASML, the world's largest semiconductor equipment manufacturer ( ASML ), will raise the prices of all components for equipment sold to South Korea by 10%.
This price increase covers all components of extreme ultraviolet ( EUV ) and deep ultraviolet ( DUV ) lithography equipment, with products delivered from January 2027 subject to the new prices.
Industry sources report that the headquarters of ASML informed Samsung Electronics and SK Hynix of this price increase plan through its Korean subsidiary at the beginning of September; after consultations with the purchasing departments of both companies, the price increase plan was finally finalized.
The price increase covers both the consumables used in daily procurement and the large core components that need to be replaced due to failures or performance degradation. Lithography equipment consists of a wide variety of parts, including light-guiding optical components such as lenses and mirrors, as well as light sources and precision motion control systems. This price increase will raise the operational and maintenance costs of the equipment.
Industry insiders said that in the past, ASML would only adjust prices for individual components when raw material costs soared or it was difficult to procure certain materials. A blanket 10% price increase like this is very rare.
An industry insider stated, "The prices of various components that make up parts have generally risen, but ASML also seems to want a larger share of the profits earned from customers."
ASML separately tracks the revenue from services, spare parts, and upgrades for installed devices. Last year, this segment's revenue reached 819.3 million euros, accounting for 25% of the company's total sales of 32.667 billion euros. ASML predicts that the revenue growth for this business this year will exceed 30%.
After the increase in component prices, the price of newly ordered complete ASML equipment may also be raised. The company is currently in negotiations with major customers regarding the price increase for the equipment.
Industry observers believe that Samsung Electronics and SK Hynix' acceptance of this comprehensive price increase by ASML will embolden other semiconductor equipment and component suppliers to raise their prices as well.
The wave of price increases has already spread. American Applied Materials stated at its August financial report conference that prices for both new and existing products have been raised; Japanese company Tokyo Electron mentioned at its financial report briefing at the end of July that it is proceeding with price adjustments to offset rising costs, which also includes equipment that has already been released onto the market; American plasma power supplier Advanced Energy Industries also indicated that prices for some of its product lines have been increased.
Behind the widespread price increases is an imbalance between supply and demand. Investments in artificial intelligence data centers have driven storage chip manufacturers and wafer foundries to expand production simultaneously, leading to a surge in orders for equipment and components; however, it takes time for suppliers to increase production capacity. Rising inflation and higher costs of raw materials have further exacerbated the cost pressures on manufacturers.
In the past, semiconductor manufacturing companies could use their strong purchasing power to drive down prices, but now suppliers have gained more leverage in business negotiations.
"Large-scale expansion of production has turned into a real demand, and there is now a shortage in the supply of equipment and components," said industry insiders. "As the scale of wafer production continues to expand, there will also be a significant gap in the supply of materials required for production."
