[News] ASML Reportedly Plans 10% Parts Price Hike in South Korea Starting Jan. 2027; Equipment Prices May Also Rise
With ASML set to report its latest earnings on October 14, the semiconductor equipment industry is seeing stronger demand and growing pricing power as chipmakers expand capacity to support AI-related growth. According to The Elec, ASML reportedly plans to raise prices by 10% on all replacement parts supplied to South Korea, covering both extreme ultraviolet (EUV) and deep ultraviolet (DUV) lithography systems. Citing industry sources, the report notes that ASML notified Samsung Electronics and SK hynix of the planned increase through its South Korean subsidiary in early September. The new prices will apply to deliveries starting in January 2027.
The increase will cover everything from regularly purchased consumables to major components replaced due to failures or declining performance. While ASML has previously adjusted prices for individual parts in response to rising raw material costs or supply shortages, an across-the-board 10% hike is unusual. Industry sources suggest the company is seeking a larger share of its customers’ profits.
The price increases may also extend beyond replacement parts, with ASML reportedly discussing higher prices for newly ordered lithography equipment with major customers.
For context, ASML generated €8.193 billion in revenue from services, replacement parts, and upgrades for installed equipment last year, accounting for roughly 25% of its total revenue of €32.667 billion. The company expects revenue from this business to grow by more than 30% this year, according to the report.
ASML’s pricing push comes as demand for its lithography systems remains strong. According to Reuters, the company’s existing EUV machines, priced at around US$200 million each, are nearly sold out through 2027, while major chipmakers are also committing to its next-generation High-NA EUV systems, priced at roughly US$400 million each.
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ASML’s pricing push is not limited to South Korea. According to Reuters in July, citing The Information, the company has also sought a 10% price increase for DUV lithography equipment, with some Chinese customers reportedly accepting the adjustment. TSMC, however, is said to be resisting price hikes for both EUV and DUV systems.
Other major equipment suppliers are also pursuing price increases. According to Wall Street Journal, Applied Materials said during its August earnings call that higher prices for both new and existing products were supporting margin expansion. The Elec adds that Tokyo Electron said in late July that it was negotiating price adjustments, including for existing models, to offset rising costs.
Supply constraints are adding to pricing pressures across the industry. According to ETNews, lead times for certain deposition equipment components have increased from four months to as long as 10 months, while some Japanese-made components used in laser processing equipment reportedly face delivery times of up to 40 months.
As The Elec notes, AI-driven capacity expansions among memory makers and foundries are pushing equipment and component demand beyond suppliers’ ability to ramp up production, while inflation and rising raw material costs add further pressure. Industry observers believe ASML’s price increases, reportedly accepted by Samsung Electronics and SK hynix, could strengthen other suppliers’ bargaining positions.
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(Photo credit: ASML)
