ASML is planning price increases on its Low-NA EUV lithography systems, a move that has reportedly frustrated TSMC and set the stage for a high-stakes negotiation between the Dutch equipment giant and its largest customer.
The potential hikes target ASML’s existing Low-NA Twinscan NXE series, which are substantially cheaper than the new High-NA (TWINSCAN EXE) systems. Low-NA tools remain the workhorses of advanced chip production at 5nm and 3nm nodes, and TSMC operates more of them than any other foundry.
According to reports from Taipei Times and The Information, ASML executives have discussed higher pricing directly with TSMC leadership. The Dutch company is seeking to capitalize on booming demand driven by AI infrastructure investment, which has strained EUV capacity across the industry.
ASML recently raised its 2026 sales forecast to between EUR 43 billion and EUR 45 billion after reporting a strong Q2 with net sales of EUR 9.3 billion. The company plans to boost EUV production capacity by roughly 30% next year, targeting 84 to 85 systems annually.
For TSMC, the price hikes arrive at a delicate moment. The foundry is already grappling with elevated capital expenditure — raised to $64 billion for 2026 — and the added cost of ASML’s Low-NA price increases could run into the billions over multiple years. TSMC’s gross margins have been pushing toward 70%, and any rise in tool costs puts that trajectory under pressure.
The outcome of these negotiations will ripple across the entire chip industry. If ASML succeeds, higher equipment costs will cascade through foundry pricing to chip designers and ultimately to end customers in AI, automotive, and consumer electronics.
