Netherlands-based semiconductor equipment manufacturer ASML is raising prices for EUV and DUV lithography equipment, facing pushback from TSMC, which holds 73% of the foundry market. ASML CFO Roger Dassen cited AI chip supply constraints and stated 'there is considerable room for price increases.' The company has notified Chinese firms of a 10% DUV price hike and is leveraging Intel's acceptance of High NA EUV increases exceeding $400 million per unit to pressure TSMC.
ASML Notifies Chinese Firms of 10% DUV Price Increase
ASML has already informed Chinese semiconductor companies of a 10% price increase for DUV lithography systems. Some Chinese firms have accepted the higher pricing. Chinese companies rely on DUV equipment because US export restrictions prevent them from accessing EUV technology. ASML is using Intel's acceptance of price increases for High NA EUV tools—exceeding $400 million per unit—as leverage in negotiations with TSMC.
China Q3 Government Bond Issuance Projected at Record 4.4 Trillion Yuan
China's central and local governments are projected to issue a maximum of 4.4 trillion yuan in net bonds during Q3, surpassing the previous record of 3.8 trillion yuan set in Q3 of the previous year. As of May, cumulative government bond balances reached 100.6 trillion yuan, crossing the 100 trillion yuan threshold for the first time. The International Monetary Fund (IMF) projects China's government debt-to-GDP ratio will reach 120.3% by 2029, up from a prior forecast of 99.2%. Including shadow debt, some estimates place the ratio above 125% of GDP. US AI infrastructure investment is projected at $1.018 trillion next year, compared to China's $123 billion—an 8.3-fold gap.
KOSPI Sidecar Triggered 37 Times, Surpassing 2008 Record
The KOSPI fell 463.81 points (6.37%) to close at 6820.60, erasing the previous day's 6.24% gain. Samsung Electronics dropped 8.77% and SK Hynix fell 11.53%, driving the index decline. The KOSPI sidecar mechanism has been triggered 37 times, surpassing the 2008 global financial crisis record of 26 activations. Circuit breakers have been triggered 7 times, exceeding the cumulative total of 6 times from 2000 through the previous year. Out of 132 trading days, the KOSPI moved more than 3% on 45 days (34.1%). Trading in Samsung Electronics, SK Hynix shares, and 16 related leveraged/inverse ETFs accounted for 96.3% of total KOSPI trading volume. Since the May 27 launch of single-stock leveraged ETFs, the KOSPI's average daily volatility has expanded from 2.44% to 3.70%.
TSMC Announces Additional $100 Billion Investment in Arizona
Taiwan Semiconductor Manufacturing Company (TSMC) reported Q2 net profit of 706.56 billion Taiwan dollars (approximately 33 trillion won), up 77% year-over-year. This marks the ninth consecutive quarter of double-digit profit growth. Advanced processes of 7 nanometers and below accounted for 77% of total wafer revenue, while high-performance computing (HPC)—which includes AI semiconductors—represented 66% of revenue, up 20% from the previous quarter. TSMC Chairman Wei Zhejia announced an additional $100 billion investment in Arizona over several years, expanding the company's total US investment from $165 billion to $265 billion. Reuters reported TSMC's market capitalization at approximately $1.97 trillion, roughly double Samsung Electronics' $1.492 trillion valuation.
FAQ
What price increase did ASML announce for DUV lithography equipment?
ASML notified Chinese semiconductor companies of a 10% price increase for DUV lithography systems. Some Chinese firms have already accepted the higher pricing.
How many times has the KOSPI sidecar been triggered?
The KOSPI sidecar mechanism has been triggered 37 times, surpassing the previous record of 26 activations during the 2008 global financial crisis.
How much additional investment did TSMC announce for Arizona?
TSMC announced an additional $100 billion investment in Arizona over several years, expanding the company's total US investment from $165 billion to $265 billion.
