ASML Shares Slip After TSMC Flags High-End Lithography Tool Cost
ASML shares dipped after Taiwan Semiconductor flagged its next-generation high-end lithography system as too expensive, sparking a brief selloff. Analysts now say ASML’s EUV tool order backlog is fully booked through 2027 and that customer demand and pricing power remain intact.
1. TSMC Criticism of ASML Tool
After evaluating its advanced nodes, Taiwan Semiconductor reported that the acquisition and operating cost of ASML’s next-generation high-end lithography system would exceed its internal threshold for capital expenditure. This assessment led investors to question ASML’s pricing model and temporarily pressured the equipment supplier’s share price.
2. Analyst Assessment and Backlog Health
Industry analysts responded by highlighting that ASML’s EUV tool order backlog remains fully booked through 2027, underpinned by strong demand from leading chipmakers pursuing advanced nodes. They also noted that ASML’s pricing power and production capacity constraints should sustain revenue growth despite isolated cost concerns.