What's Going On With Taiwan Semiconductor and ASML Stocks On Friday?
Portfolio Pulse from Anusuya Lahiri
Taiwan Semiconductor Manufacturing Co (TSM) is set to acquire high-precision equipment from ASML Holding NV (ASML) by year-end, enhancing its chipmaking capabilities. ASML will supply high NA EUV lithography machines, each valued at $350 million. Analyst Ming-Chi Kuo predicts a potential pricing standoff between the two companies. ASML faces geopolitical tensions as the U.S. pressures it to limit technology sales to China. ASML's 2025 sales forecast has been adjusted due to weaker demand.
November 01, 2024 | 2:58 pm
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NEUTRAL IMPACT
ASML Holding NV will supply TSM with high NA EUV lithography machines, but faces a potential pricing standoff. Additionally, ASML is under U.S. pressure to limit technology sales to China, which could impact its business strategy.
ASML's deal with TSM is significant, but the potential pricing standoff and geopolitical pressures from the U.S. regarding sales to China could create uncertainties in its business operations and future revenue projections.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 85
POSITIVE IMPACT
Taiwan Semiconductor Manufacturing Co (TSM) will enhance its chipmaking capabilities by acquiring high-precision equipment from ASML. This move could strengthen TSM's market position, but a potential pricing standoff with ASML may impact costs.
TSMC's acquisition of advanced equipment from ASML is likely to enhance its production capabilities, potentially leading to increased competitiveness and market share. However, the potential pricing standoff with ASML could affect TSM's cost structure.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90