Taiwan Semiconductor Manufacturing Corporation (NYSE:TSM) plans to acquire new high-precision equipment by the end of the year to strengthen its chip manufacturing capabilities.
Dutch supplier ASML Holding NV (NASDAQ:ASML) will provide Taiwan Semiconductor with high numerical aperture extreme ultraviolet (high NA EUV) lithography equipment worth approximately $350 million each, Nikkei Asia reported. .
Analyst Ming-Chi Kuo predicted a potential price conflict in the semiconductor sector in October. Kuo noted that ASML may be planning to raise equipment prices for its main customer Taiwan Semiconductor, but that Taiwan’s contract chip makers are likely to counter requests for lower prices.
ASML is also battling the same geopolitical tensions as Taiwan Semiconductor. The United States has asked ASML to restrict the provision of its technology to China, citing national security threats.
ASML CEO Christophe Fouquet expects the US to increase pressure on ASML to limit sales of semiconductor technology to China.
Speaking at the Bloomberg Tech Summit, Fouquet emphasized that the United States is trying to curb China’s chip advances through export controls.
Fouquet noted that ASML’s focus in China remains on mature chips and away from advanced AI-related semiconductors, which are the center of U.S. concerns.
ASML expects net sales in 2025 to fall from 30 billion to 40 billion euros to 30 billion to 35 billion euros ($32.7 billion to $38.2 billion), reflecting weak demand for semiconductor manufacturing equipment. I predict that it will.
Price Action: TSM stock is up 2.50% at $195.31 at last check on Friday. ASML rose 0.76%.
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Photo via ASML
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