WS #15833
ASML's CFO provided key forward indicators for the semiconductor equipment cycle, confirming that demand for Elon Musk's TeraFab is baked into their 2027 and beyond forecasts. The company expects the impact of recent price increases to become visible starting in 2027, signaling a potential inflection in pricing power as supply constraints bite. However, ASML also cautioned that US efforts to match export limits on DUV equipment to China could be counterproductive, suggesting complex geopolitical headwinds for the sector.
ASML Chip Supply and Pricing Power
ASML's CFO provided key forward indicators for the semiconductor equipment cycle, confirming that demand for Elon Musk's TeraFab is baked into their 2027 and beyond forecasts. The company expects the impact of recent price increases to become visible starting in 2027, signaling a potential inflection in pricing power as supply constraints bite. However, ASML also cautioned that US efforts to match export limits on DUV equipment to China could be counterproductive, suggesting complex geopolitical headwinds for the sector.