Key Points
ASML (NASDAQ: ASML), the largest producer of lithography systems and the sole manufacturer of extreme ultraviolet (EUV) systems, reported plans to raise prices on its low-NA EUV systems used in advanced chip production. The low-NA systems are currently priced at approximately $200 million, while the newer high-NA systems exceed $400 million.
As of 2023, top foundries including TSMC (NYSE: TSM), Samsung, and Intel (NASDAQ: INTC) utilize ASML’s EUV technology, making the company essential to the global semiconductor supply chain. Forecasts suggest that the global EUV market could grow at an 11.4% CAGR from 2026 to 2032, with ASML projecting revenues of €44 billion to €60 billion ($51 billion to $69 billion) by 2030.
ASML’s challenges stem from the necessity of maintaining high prices due to substantial engineering costs and a competitive supply chain for specialized optics and lasers. As TSMC plans to transition fully to high-NA systems by 2029 and Intel has already begun using them for its latest chips, the demand for ASML’s technology remains robust despite potential industry shifts.
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