Almost all electronics in the world could become more expensive because of one company in the Netherlands: How, what, why?

The Dutch company ASML — the world's monopoly manufacturer of advanced chip-making equipment — is considering raising its prices. This decision could trigger a new wave of semiconductor price increases and, consequently, of all consumer electronics.

What's happening

ASML CFO Roger Dassen, following the publication of the company's quarterly results, stated that the company is exploring the possibility of raising prices on some of its equipment. According to him, the current market situation gives ASML a strong negotiating position with customers.

Production capacity for the most advanced EUV lithography systems is already almost fully booked through the end of 2027. This creates conditions for upward price adjustments.

Market reaction

Previously, the largest contract chip manufacturer, TSMC, expressed dissatisfaction with ASML's plans. Nevertheless, according to Reuters, some Chinese clients have already agreed to a 10% price increase on less advanced DUV systems.

Why this matters

ASML is the only manufacturer in the world of equipment for producing the most advanced chips using extreme ultraviolet lithography (EUV). Price increases on its machines will inevitably lead to higher semiconductor production costs. Ultimately, this will affect the price of smartphones, laptops, cars, home appliances, and other electronics.

In brief

ASML, the monopoly manufacturer of advanced chip-making equipment, is considering raising its prices. This decision could lead to a new round of semiconductor price increases and, consequently, of all consumer electronics. The company's EUV system production capacity is already booked through the end of 2027. TSMC is unhappy with ASML's plans, but some Chinese clients have already agreed to the increase. Analysts expect that rising chip prices will gradually affect the final cost of gadgets.