ASML just slapped a flat 10% increase on every spare part sold to Samsung and SK Hynix. Both accepted without pushback. New tools are getting repriced next.
This tells you everything about leverage in the semiconductor supply chain right now. When you're the monopoly on EUV lithography equipment, you set the terms. Samsung and SK Hynix need those parts to keep their fabs running — there's no alternative supplier, no negotiating room.
The pricing power here is extraordinary. ASML isn't just raising prices because they can. They're doing it because demand for leading-edge chip production remains strong enough that customers will absorb it. If memory makers are willing to eat a 10% hike on parts without resistance, what does that say about their own margin outlook and end-market demand?
Watch for this to flow through to new tool orders. If ASML is confident enough to reprice the entire service and parts business, they're likely preparing to adjust forward tool pricing as well. This is how you maintain 60%+ gross margins in a capital equipment business.
For anyone tracking the AI infrastructure buildout, this is another data point confirming tight supply and strong demand across the entire semiconductor stack. ASML's pricing power is a leading indicator.
$SKHY
This tells you everything about leverage in the semiconductor supply chain right now. When you're the monopoly on EUV lithography equipment, you set the terms. Samsung and SK Hynix need those parts to keep their fabs running — there's no alternative supplier, no negotiating room.
The pricing power here is extraordinary. ASML isn't just raising prices because they can. They're doing it because demand for leading-edge chip production remains strong enough that customers will absorb it. If memory makers are willing to eat a 10% hike on parts without resistance, what does that say about their own margin outlook and end-market demand?
Watch for this to flow through to new tool orders. If ASML is confident enough to reprice the entire service and parts business, they're likely preparing to adjust forward tool pricing as well. This is how you maintain 60%+ gross margins in a capital equipment business.
For anyone tracking the AI infrastructure buildout, this is another data point confirming tight supply and strong demand across the entire semiconductor stack. ASML's pricing power is a leading indicator.
$SKHY