Nvidia Supplier TSMC Will Push Back Against ASML Rumored Price Hikes, Says Analyst — Potential Pricing Standoff Imminent In Semiconductor Industry?
Portfolio Pulse from Ananya Gairola
Analyst Ming-Chi Kuo predicts a potential pricing standoff in the semiconductor industry as ASML considers raising equipment prices for TSMC, which may push back. TSMC, a major supplier to Nvidia and Apple, recently reported strong Q3 results, while ASML also exceeded sales expectations.
October 18, 2024 | 4:21 am
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POSITIVE IMPACT
TSMC may push back against ASML's rumored price hikes, potentially leading to a pricing standoff. TSMC's strong Q3 results and guidance indicate robust demand for its advanced technologies.
TSMC's potential pushback against ASML's price hikes could strengthen its negotiating position. Its strong Q3 results and positive guidance suggest continued demand for its technologies.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
Apple, a major client of TSMC, might see indirect effects from the TSMC-ASML pricing standoff. TSMC's strong results indicate continued supply reliability.
Apple depends on TSMC for chip production. While the pricing standoff could have indirect effects, TSMC's robust performance suggests it can maintain supply commitments.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50
NEUTRAL IMPACT
Nvidia, a client of TSMC, could be indirectly affected by the pricing standoff between TSMC and ASML. However, TSMC's strong performance suggests continued supply stability.
Nvidia relies on TSMC for chip manufacturing. While a pricing standoff could affect supply chain dynamics, TSMC's strong results suggest it can manage potential disruptions.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
ASML may face a pricing standoff with TSMC over potential equipment price hikes. This could impact ASML's sales and relationships with key clients like TSMC.
ASML's potential price hikes could lead to a standoff with TSMC, its largest customer. This may negatively impact ASML's sales and client relationships, especially if TSMC pushes back.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80