ASML has uniformly raised the prices of components for photolithography equipment in South Korea by 10%

The photolithography equipment manufacturer ASML will uniformly raise the prices of replacement parts supplied to South Korea by 10%, including all parts of extreme ultraviolet (EUV) and deep ultraviolet (DUV) photolithography equipment, effective from January next year. According to industry news on the 10th, ASML's headquarters proposed this plan to Samsung Electronics and SK Hynix through its Korean subsidiary early last month, which was confirmed after negotiations between the procurement departments of both parties; regularly procured consumable parts, as well as major components replaced due to failure or performance decline, are included in the price increase range.

Photolithography equipment consists of a large number of components, including optical systems, light sources, and precision drive devices, and the cost of continuous operation will rise. ASML has previously adjusted the prices of related components individually, mainly during significant raw material price increases or difficulties in procuring specific materials, making a uniform 10% increase rare. A semiconductor industry insider stated that the overall price increase of component elements is occurring, and there is also a factor where ASML hopes to gain more profit after customers become profitable. ASML separately tracks the revenue from services, parts, and upgrades for installed equipment, which was €8.193 billion last year, accounting for 25% of total revenue of €32.667 billion, and the company expects this revenue to grow by over 30% this year.

Reports indicate that after the parts increase, the prices of newly ordered ASML equipment are also likely to rise, and the company is discussing price increases with major customers. In July this year, The Information reported that ASML had notified Chinese semiconductor companies and others of a 10% price increase for DUV equipment, with some customers accepting it, while the largest customer, TSMC, reportedly opposed the equipment price increase.