GoKawiilAs the semiconductor industry increasingly relies on ASML's EUV lithography tools both for logic and memory production, ASML is considering increasing prices of these systems as they deliver greater productivity and better value for its customers. However, with 2027 production nearly sold out and substantial 2028 orders already booked, meaningful increases may primarily affect systems delivered from late 2028 onward. Nonetheless, the idea has already angered TSMC, ASML's largest client, reports The Information.
"When it comes to Low-NA [EUV tools] pricing, of course, you know that we keep on increasing the productivity of the Low-NA tool, [which] gives us a pretty strong runway for potential price improvements going forward," said Roger Dassen, chief financial officer of ASML, during the company's quarterly earnings call. "Given the long order lead times that we have, that... doesn't translate into pricing effects tomorrow."
Value-based pricing set to persist… in a new way
ASML has long followed what it calls value-based pricing and gradually increased its quotes based on output, patterning costs, power consumption, and other benefits its new tools offer to clients.
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Usually, this involved increasing prices once in a while. For example, if early Twinscan NXE Low-NA EUV systems cost roughly €100 million – €120 million ($115 million–$137 million), the more advanced are priced starting at €170 million ($195 million. It is still well below rumored quotes for High-NA EXE scanners that exceed €350 million ($400 million). At the same time, Low-NA productivity has risen from 160–170 wafers per hour (WPH) and ≤1.1nm matched-machine overlay to 220 WPH/260 WPH with NXE:3800E/NXE:3800F at 0.9nm. Future NXE:4200G/NXE:4200H systems are expected to exceed 300 WPH and improve overlay to ≤0.8nm–≤0.7nm.
(Image credit: ASML)
"Clearly, the environment that we live in today, with the value that our products bring to customer — it's substantial— of course, gives us flexibility on pricing, more so than what you would have seen in the past," Dassen said. "Of course, we are executing on that as well."
However, later during the call, Dassen emphasized that ASML intends to maintain its value-based approach even in the current environment of high demand and limited supply in the semiconductor world. Yet, he stressed that from now on, ASML might want to charge for things beyond just productivity.
"We have always been able to show customers not just productivity upgrades, but also the value from better imaging, the value of better overlay, etc.," Dassen said. "[But] you got this very strong correlation between throughput improvements and ASP. That is just the way things panned out," he said, suggesting that ASML shares value with its clients.
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