ASML Raises South Korea Lithography Spare Parts Prices 10%, Pressuring Samsung and SK Hynix as AI Expansion Boosts Equipment Makers' Pricing Power

TradingKey - According to South Korean media outlet The Elec, ASML (ASML) will uniformly raise the prices of replacement parts for lithography equipment supplied to the South Korean market by 10%, with the new prices taking effect for deliveries starting in January 2027 and covering all spare parts for extreme ultraviolet (EUV) and deep ultraviolet (DUV) lithography machines.

This price hike will increase equipment maintenance costs for Samsung Electronics and SK Hynix, while also reflecting that semiconductor equipment suppliers are seeking greater pricing power against the backdrop of AI-related capacity expansion.

From Consumables to Critical Spare Parts, Unified Price Hikes Are Relatively Rare

According to reports, ASML headquarters submitted price hike proposals to Samsung Electronics and SK Hynix through its South Korean branch in early September, which were finalized after negotiations with the procurement departments of both companies.

This price adjustment covers both consumables requiring regular procurement and key components needed when equipment fails or experiences performance degradation. For installed lithography systems, continuous operation relies on maintenance and spare parts replacement; therefore, the price increases will not only affect new purchases but also raise the operating expenses of existing equipment.

Unlike past price adjustments made in response to rising costs or procurement difficulties for individual raw materials, this uniform 10% price hike is relatively rare. Industry insiders believe that widespread increases in component costs are one reason, and ASML also seeks to boost its own profit margins as customer profitability improves.

However, a 10% rise in spare parts procurement prices does not imply a corresponding 10% increase in customers' overall equipment operating costs or chip manufacturing costs. The actual impact depends on replacement frequency, procurement structure, and the share of related costs.

After-Sales Business Becomes Source of Growth for ASML, Price Hikes Expected to Support Revenue

ASML categorizes services for its installed equipment base—such as maintenance, upgrades, and spare parts replacement—as a standalone business line. Data cited in reports indicates that revenue from this business reached nearly 8.2 billion euros in 2025, accounting for about 25% of total revenue. The company expects related revenue to potentially grow by over 30% in 2026.

As customers' installed equipment base expands and production activity increases, demand for maintenance and upgrades is expected to keep growing. If implemented smoothly, the price increase on spare parts will provide additional support for related revenue and help the company absorb part of the upward cost pressure.

However, spare parts represent only one component of this business, and this price adjustment is limited to the South Korean market. Therefore, it cannot be extrapolated that ASML's global aftermarket revenue or profit will increase by a corresponding 10%. The extent of profit improvement will still depend on cost changes, procurement volumes, and product mix.

Regarding complete systems, earlier reports also indicated that ASML planned to raise tool prices, but TSMC had explicitly opposed it. The diverging progress of these two types of price adjustments shows that equipment vendors' pricing power must still be assessed based on product category and customer negotiation dynamics.

Equipment Makers Adjust Prices as AI Expansion Boosts Upstream Bargaining Power

Price adjustments have already extended to other semiconductor equipment suppliers. Applied Materials (AMAT) previously disclosed that prices for both new and existing products have increased, while Tokyo Electron also stated that it is responding to rising costs through price adjustments.

On the demand side, investments in AI chips, High Bandwidth Memory (HBM), and advanced nodes are driving capacity expansion among memory makers and foundries, increasing procurement demand for equipment, spare parts, and production consumables.

According to SEMI forecasts, global semiconductor equipment sales will reach $165.9 billion in 2026, up 23.2% year-on-year; by 2028, the market size is expected to grow to $229.5 billion.

Amid rising equipment orders and tightening supply for certain components, the scope for customers to leverage procurement scale to push down unit prices may narrow. However, whether price increases can continue to be passed through still depends on the supply-demand dynamics of different equipment types and the pace of customers' capacity expansion.

For ASML, the key focus moving forward is whether price hikes can translate into profit growth for its aftermarket business; for customers such as Samsung Electronics and SK Hynix, they need to absorb the pressure of rising equipment maintenance and procurement costs while expanding capacity and raising capacity utilization rates.