ASML will implement a 10% across-the-board price increase on replacement components supplied to South Korea, according to reports.
The price hike covers all components for extreme ultraviolet (EUV) and deep ultraviolet (DUV) lithography machines, with the new pricing applying to products delivered from January next year.
According to industry sources on the 10th, ASML's headquarters sent the price increase proposal to Samsung and SK Hynix through its South Korean subsidiary early last month.
After negotiations with the procurement departments of both companies, the price increase was finalized.
All categories are subject to the higher prices, from consumable components that require regular procurement to core components replaced when equipment malfunctions or performance degrades.
Lithography machines contain a large number of components, such as optical components including lenses and mirrors that transmit light, as well as light sources and precision drive devices.
The cost of continuously operating the equipment will increase accordingly.
Previously, ASML only adjusted prices for specific components on an individual basis when raw material costs rose sharply or when particular materials were difficult to procure.
This uniform 10% increase is an unusual move.
A semiconductor industry insider said: "On one hand, prices of various raw materials for components have generally risen; on the other hand, ASML also wants to earn higher profits given that its customers are profitable."
ASML separately tracks revenue from maintenance services, component replacements, and upgrade business for equipment already installed at customer factories.
Last year, revenue from this segment was 8.193 billion euros, accounting for 25% of total revenue of 32.667 billion euros.
ASML expects this business to grow by more than 30% this year.
Following the component price increase, the prices of newly ordered complete ASML systems are also highly likely to rise.
ASML is currently in negotiations with major customers regarding equipment price increases.