What I don't understand is why ASML/TSMC doesn't start a more aggressive monetization model, taking e.g. 30% of the profits of their customers like Apple does.
why Westerners always thinking about aggressive increase price? it may give you a short term profit but in the long run. your customers will start to look else where and try new technology to by pass you.
Apple stop paying Intel's tax. Apple stop paying Qualcomm's tax. Apple stop paying Samsung's tax.
i just don't understand why you want to kill your golden goose and its not like TSMC doesn't raise price. (they increase it by 20% during covid shortage). why create a lose-lose situation instead a win-win for everyone.
TSMC did hike prices the moment they were able. If they can maintain and extend their lead, they will hike them further. Because they can.
I am sure they will frame this as a win-win. Victors always do.
Seems pretty clear to me that the comment you're replying to is talking about short-term profit maximization, and not "profit seeking" in general.
The argument is that excessive short-term profit maximization hurts you in the long run by driving your customers to look for alternatives. Which you'll notice only makes sense as an argument if you do care about profits.
And I agree that it's debatable whether this is specifically a Western failing or not, but it's sure become a common approach over at least the last few decades in the US of A.
Increasing prices seems fairly safe for TSMC though as long as they keep their technological edge and are ready to lower prices again once a viable competitor emerges.
Why do you unironically use the word westerner? that's like generalizing all of east asia
The moment TSMC can say "our node makes the king -- start bidding" their margins will expand exactly as you describe. They got close. Very close. Desperate, extreme action by the other players prevented them from fully capitalizing on the trophy. This time.
In truth, the 20% price ramp still reflects a partial victory.
Perhaps you mean Samsung (which also uses ASML).
And no, Intel didn't "strike back". They forced an existing manufacturing technology to run even hotter and still manage to work.
Yes, Intel did "strike back" -- they shipped competitive products and earned money. Like NVidia on Samsung 8nm, they had to punch up.
Once TSMC is a kingmaker, they will charge a king's ransom -- but they aren't. Not yet. Competitors are still holding on, though they certainly have the disadvantage at the moment. The 20% price hikes (which are actually more than 20%) reflect this dynamic almost exactly: TSMC is the champ, but not the undisputed champ, so they can start hiking prices but they can't actually squeeze out their customers' margins yet.