ASML is pushing ahead with price increases on its low-NA EUV lithography systems, and TSMC, its largest customer, is pushing back, according to multiple reports from The Information and Reuters.
Each low-NA EUV machine is priced at roughly US$235 million (approximately £183 million), depending on configuration. With ASML targeting shipment of at least 60 such systems in 2026 and around 80 in 2027, the cumulative cost impact on chipmakers is significant. Morgan Stanley estimates that a 5% increase in equipment prices alone could add roughly US$3 billion to TSMC’s capital expenditure, with another US$8 billion potentially allocated toward equipment prepayments.
The price tension comes at a moment of exploding capex for TSMC. The foundry giant raised its 2026 capital expenditure guidance to US$60–64 billion, up from a previous range of US$52–56 billion, and surprised markets by announcing an additional US$100 billion investment in Arizona facilities. Citi forecasts TSMC’s capex could reach US$77 billion in 2027 and US$86 billion in 2028.
ASML’s pricing strategy is underpinned by robust demand. The Dutch lithography company upgraded its full-year 2026 revenue guidance to €43–45 billion, driven in part by installation-related revenue and growing memory-sector demand, the company expects memory-related system sales to rise more than 75% this year.
But the price increases are not limited to new systems. Reports indicate ASML is also seeking a roughly 10% price hike on its mature DUV systems, which are still used extensively for non-leading-edge production. For TSMC, which operates the world’s largest fleet of ASML lithography equipment, the cumulative effect of these increases compounds across hundreds of tools.
TSMC’s resistance is strategic as well as financial. The company has publicly stated it does not plan to adopt ASML’s next-generation high-NA EUV systems, which cost roughly US$400 million per tool, for its upcoming A13 node, opting instead to extend the performance envelope of existing low-NA EUV through multi-patterning and optical shrink techniques. Kevin Zhang, TSMC’s deputy co-chief operating officer, told Reuters that the company’s R&D has been “exceptionally effective” in pushing current EUV capabilities.
The equipment cost dynamic feeds directly into wafer pricing. Citi and Morgan Stanley both expect TSMC to raise leading-edge wafer prices by another 5% to 10% in 2027, passing equipment cost increases downstream to AI chip customers like Nvidia, Apple, and AMD. TSMC’s 2nm wafers are already reported to cost around US$30,000 each, and further increases would put additional pressure on chip designers’ margins.
Sources: Reuters on ASML price room (July 15, 2026); TrendForce analysis of TSMC capex and ASML pricing (July 17, 2026); The Information on ASML price increases