Analysts try to quell market panic after Taiwan Semiconductor said ASML charges too much

By Steve Goldstein

Taiwan Semiconductor says it's not going to splurge for ASML's high-end machines.

There aren't many customers for ASML's multi-million-dollar microchip making machines, and one of them just drew a line in the sand.

TSMC (TSM) deputy co-chief operating officer Kevin Zhang told reporters on Wednesday that it no current plans to adopt ASML's latest high numerical aperture extreme ultraviolet lithography machines that cost more than $400 million each, according to Bloomberg News.

Zhang called those machines "very, very expensive."

That headline triggered an immediate decline in ASML's U.S.-listed ADR (ASML) from $1,470 to below $1,400, though the stock, whose main listing is in the Netherlands (NL:ASML), then recovered much of the lost ground.

After closing 1% lower on Wednesday, ASML stock fell another 1% in early trade on Thursday.

UBS analyst Francois-Xavier Bouvignies called it a timing headwind and not a structural change.

He said that UBS previously estimated what's called High NA EUV could represent 15% to 20% of total lithography system sales by the end of the decade but said ASML still has a "unique monopoly position" and increasing share of wafer fab equipment.

Citigroup analysts led by Andrew Gardiner, in a note cleverly titled, "Deja EUV all over again," said Zhang has spoken cautiously about adoption of the product in previous years as well.

"Other ASML customers, Intel and Samsung, have been speaking more positively of High NA capabilities and adoption. We have not expected significant volume of High NA tools to ship until 2028, with high volume production targeted from 2029 onwards," he said.

-Steve Goldstein

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04-23-26 0940ET