Free NewsletterPro Login

ASML Plans to Raise Prices on Chipmaking Tools, Potentially Straining Ties with TSMC

Published Jul 15, 2026
Share:
Summary:
  • ASML plans to raise prices on its advanced chipmaking machines.
  • Its top EUV lithography tools already cost around $410 million each.
  • Higher prices could strain ties with key customer TSMC.

The Price Hike Plan

ASML makes the machines that build the world's most advanced computer chips. One of its top-of-the-line EUV lithography machines already costs upwards of €350 million, or roughly $410 million apiece, according to TSMC. Now the company wants to charge even more.

During Wednesday's earnings call, CFO Roger Dassen hinted at the possibility of price adjustments for the less advanced EUV tool, the low‑NA model. "We keep on increasing the productivity of the low NA tools so, of course, that gives us a pretty strong runway for potential price improvements going forward," Dassen said.

For the second time this year, ASML raised its full‑year sales outlook. The Dutch firm now projects net sales in the range of €43 billion (about $49.2 billion) to €45 billion for the year, well above analysts' expectations.

Why ASML Has the Upper Hand Right Now

Artificial intelligence is fueling a surge in the chip industry. Record profits at major ASML customers like TSMC, Samsung, and SK Hynix have set the stage for possible price hikes, according to a Monday note from RBC Capital Markets analyst Srini Pajjuri.

Get the market news that matters in a five-minute read with Market Briefs, our free daily newsletter

Additionally, ASML noted that Intel Corp., one of its clients, has begun utilizing the company's most cutting‑edge machine for manufacturing chips - a step that CEO Christophe Fouquet called a positive signal for the technology's commercial readiness. This follows TSMC's earlier statement that the equipment is prohibitively costly for production purposes, although the Taiwanese chipmaker does employ them for research.

TSMC Pushes Back

Here is where things get interesting. Neither ASML nor TSMC responded to inquiries for comment.

ASML's CFO acknowledged that any price changes would take time to show up in revenue anyway. Long order lead times mean a price increase would not "translate into pricing effects tomorrow," as Dassen put it. So even if ASML raises prices now, the financial impact could be months or even years down the road.

The real question is whether TSMC will ultimately accept higher prices or force ASML to back down. TSMC needs those machines to keep building the chips that power AI, but it also has the size and clout to push back hard.

What This Means for Your Portfolio

For investors, watch how this plays out. If TSMC accepts higher prices, ASML's already impressive revenue growth could accelerate further. That is good news for anyone holding ASML stock or a broader tech fund that includes the company.

If TSMC holds its ground and forces a compromise, ASML's pricing power may have a ceiling. That would not be a disaster - the company still has a near‑monopoly on the most advanced chipmaking tools - but it would mean slower profit growth than bulls expect.

The bottom line: AI is driving demand for chips at a pace that makes machine makers like ASML essential partners. Their customers are making record money, which gives suppliers room to raise prices. But the biggest customer has the most to lose - and the most power to say no. Keep an eye on TSMC's next earnings call. That is where this story will take its next turn.

Join Market Briefs, our free daily newsletter, for a quick daily rundown of the markets

Disclosure

Recent News

1 2 3 … 108

Get Market Briefs delivered to your inbox every morning for free!

No fluff. No noise. No politics. Just finance news you can read in 5 minutes.

Blogs

October 16, 2026
How Boring Math Makes You Rich: The Briefs Money Spreadsheet, Explained
  • Briefs Money shows you what to do with every paycheck, and in what order: how much to spend, save, and invest, when to build an emergency fund, and which debt to pay off first.
  • The Climb to Wealth course walks you through the system step by step, and the Personal Finance Spreadsheet is where you track your own numbers.
  • Investing is one piece of building wealth. The system that gets money to your investments, and keeps it there, decides the outcome.
Read More
October 16, 2026
Common Investing Mistakes: Why a Stock Grade Is One Tool, Not the Whole Toolkit
  • The Briefs Score shows growth, income, and wealth preservation investors how well a stock fits their goal, with a separate letter grade for each one.
  • The most common mistake is treating the letter as an instruction. An A tells you a stock scores well for one goal, not that you should buy today.
  • Research works best as one input in a process you own. The grade shows how a stock stacks up. You supply the goal, the timeline, and the rules for being wrong.
Read More
October 16, 2026
How to Read a Company's Numbers Without a Finance Degree (Using Briefs Terminal)
  • Briefs Terminal lets you size up any public company in about ten minutes: what the stock costs, what it earns, how fast sales are growing, and what it pays you, all on one page.
  • It lines those numbers up against the company's closest competitors for you, so you can tell if a number is impressive or just average.
  • Below that are the income statement, balance sheet, and cash flow statement from the company's SEC filings, the latest news, and transcripts of its earnings calls.
Read More
October 16, 2026
What Type of Investor Am I? The Three Investor Archetypes, Explained
  • Briefs sorts its stock grades and monthly reports by three investor goals: growth, income, and wealth preservation. Pick yours and you know which report and which grade to read first.
  • Growth investors want stocks that beat the S&P 500. Income investors want to get paid in cash. Wealth preservation investors want stocks that hold up when the market drops.
  • The same stock can score an A- for one goal and a D- for another, so picking your goal comes before picking any stock.
Read More
October 16, 2026
How to Build a Stock Watchlist That Isn't Just Stocks You Heard About
  • A watchlist on Briefs Terminal lets you group stocks by the idea you're tracking and follow each one's price, one-day move, and 52-week high and low in one place.
  • Each list has its own name and description, so you always know why a stock is on it, and you can make as many lists as you have ideas.
  • The monthly growth, income, and wealth preservation reports under the Briefs Research tab hand you new themes to track that you didn't hear about online.
Read More
October 16, 2026
How to Choose an ETF That Matches Your Idea (Using the ETF Planning Tool)
  • The ETF planning tool takes an idea like "I want to invest in fast food companies," asks what you mean, and finds the ETFs that match, with the reasons, the holdings, and the sources.
  • Build a Plan then shows what your money could grow to in those ETFs over the years you choose, with conservative, expected, and optimistic estimates next to the S&P 500.
  • It gets you from an idea to an actual plan without researching dozens of companies one at a time.
Read More
October 16, 2026
Is This Stock a Good Buy? How to Use the Briefs Score to Tell If a Stock Fits the Way You Invest
  • The Briefs Score shows growth, income, and wealth preservation investors how well a stock fits their goal, with a separate letter grade for each one.
  • One stock can score very differently for each. Nvidia showed an A- for growth and a D- for income, because it grows fast and pays almost no dividend.
  • Seven sub scores under each grade show what earned the letter, so you can see exactly where a stock is strong or weak for your goal.
Read More
October 16, 2026
How to Tell an Asset From a Liability: The One Question to Ask Before You Buy Anything
  • The typical American household earned more in 2025 than in any year on record, yet only 30% of Americans say they could pay a surprise $1,000 bill from savings, so the problem isn't income but what the income gets spent on.
  • An asset puts money in your pocket and a liability takes money out, and the wealthy buy assets first, then let the assets pay for the fun stuff.
  • Before you buy anything, ask one question: does this put money in my pocket, or take money out of my pocket? Then you need a plan for the money you keep.
Read More
October 16, 2026
How to Build Your First $2,000 Emergency Fund and Wipe Out Every Debt Over 10%
  • Your first money goal isn't investing, it's $2,000 in its own account named Do Not Touch, built by moving 10% of every paycheck into it automatically.
  • More than a third of American adults couldn't cover a $400 surprise bill with cash or savings, according to the Federal Reserve, and that's how one bad day turns into years of credit card payments.
  • Once the $2,000 is there, attack every debt charging more than 10% interest, highest rate first, because you can't out-invest a 22% credit card so paying it off is the investment.
Read More
October 16, 2026
How to Invest Through a Crash: 3 Rules From the Worst-Timed Investor Alive
  • Meet Bunty, a fictional investor with the worst timing in history: he put $100,000 into the market in four chunks right before four crashes, never sold, and by 2025 it had grown to more than $500,000.
  • Investors who jump in and out of the market miss its best days, and missing just a handful of those days can cut your final result roughly in half.
  • The fix is ABB, Always Be Buying: you buy on a schedule through booms, crashes and scary headlines, which matches the market, and beating it takes knowing where the money is moving first.
Read More
1 2 3 … 29
Share via
Copy link