According to a report citing informed sources, ASML Holding NV is planning to increase prices for its semiconductor manufacturing equipment. Taiwan Semiconductor Manufacturing (NYSE: TSM), its largest client, has reportedly expressed opposition to the Dutch lithography machine maker's proposed price hikes.

ASML Holding NV shares closed down 0.41% on Wednesday.

The company manufactures extreme ultraviolet (EUV) lithography machines, which are essential for producing advanced semiconductors. Demand for its equipment continues to surge, fueled by the artificial intelligence boom.

In a report on Monday, analysts including Srini Pajjuri from RBC Capital Markets noted that strong performance from ASML's key customers, such as Taiwan Semiconductor Manufacturing, Samsung Electronics, and SK Hynix, has created a market environment "conducive to price increases."

During an earnings call on Wednesday, ASML's Chief Financial Officer, Roger Dassen, also mentioned the company might adjust prices for its lower numerical aperture (Low NA) EUV lithography systems. He stated that ongoing improvements in production efficiency for these Low NA EUV tools provide "considerable room for potential price increases in the future."

However, he added that due to the long lead times for equipment delivery, any price adjustments would not be immediately reflected in the pricing structure.

On the same day, ASML announced its second upward revision of its full-year sales forecast for 2024 and plans to expand production capacity to meet sustained market demand. The company anticipates its net sales will reach between €43 billion and €45 billion (approximately $49.2 billion to $51.5 billion) by 2026, exceeding general analyst expectations.

Concurrently, ASML indicated that its customer Intel has begun using its most advanced lithography machine for chip manufacturing. ASML's CEO, Christophe Fouquet, views this as a positive signal, demonstrating the equipment's viability for commercial production.

Previously, Taiwan Semiconductor Manufacturing stated that ASML's most advanced high numerical aperture (High NA) EUV lithography machines, each costing over €350 million (approximately $410 million), are too expensive for high-volume manufacturing and are currently used only for research and development purposes.