The Same Equipment, Different Prices: Behind It Lies Not Discrimination, but a Sophisticated Commercial Art  

Step into a restaurant, and you may find that the same dish is priced differently for different customers—a practice known as "dual-price menus." This phenomenon is not unique to the food industry; it also exists in the semiconductor equipment sector, where a single piece of equipment can cost tens of millions of dollars. Here, the same equipment from the same manufacturer may come with drastically different quotes for different clients.  

The logic behind this pricing strategy is far more complex than the simple principle of "larger orders, better prices." Due to the semiconductor equipment industry’s unique characteristics of being ‘technology-intensive’and ‘capital-intensive’, a complex and sophisticated pricing mechanism has taken shape. Today, we will uncover the truth behind this mechanism.  

 

The Multifaceted Nature of Semiconductor Equipment Pricing  

In the semiconductor industry, equipment pricing has never been a straightforward price list. Manufacturers must consider multiple factors—including client scale, order volume, service requirements, and strategic value—to develop differentiated pricing strategies.  

This differentiation is not arbitrary; it is rooted in a complete set of business logic. To some extent, pricing semiconductor equipment is more of an art than a simple scientific calculation.  

 

Core Factors Influencing Semiconductor Equipment Pricing  

Order Volume: More Than Just "Larger Orders, Better Prices"  
Order volume is the most intuitive factor affecting equipment pricing. Large orders create economies of scale, reducing manufacturers’ production and operational costs. These cost savings are then passed on to clients in the form of price discounts.  

However, the impact of order volume goes far beyond this. Large-scale orders often signify a deeper cooperative relationship between manufacturers and clients—a relationship that can bring sustained business opportunities in the future. When setting prices, manufacturers take into account both the client’s potential value and the possibility of long-term cooperation.  

For example, a chipmaker that is expanding rapidly may receive more favorable quotes. This is because equipment manufacturers are optimistic about the client’s future growth potential and are willing to offer current price discounts to secure future orders.  

 

Services and Accessories: The "Iceberg" Hidden Behind Prices  
A semiconductor equipment transaction involves more than just the equipment itself. After-sales services and accessory supply are equally crucial parts of the deal, and they directly influence pricing strategies.  

Manufacturers usually consider the equipment’s base price alongside after-sales services (such as installation, commissioning, maintenance, and technical upgrades) as a bundled package. For some clients, manufacturers may lower the equipment’s base price to secure long-term service contracts and accessory supply businesses.  

This strategy mirrors the "razor-and-blade" business model: attract clients with relatively favorable equipment prices, then achieve long-term profitability through ongoing services and sales of high-value accessories.  

As revealed by one semiconductor equipment manufacturer’s business model, the company does not only sell equipment but also provides "a full range of after-sales services, including post-delivery training, maintenance, spare parts replacement, and technical upgrades"—all of which form a key source of its long-term revenue.  

 

Strategic Cooperation and Market Layout Considerations  
Manufacturers also factor in strategic market layout when pricing equipment. Collaborating with industry leaders—even at discounted prices—can provide manufacturers with ‘brand endorsement’ and ‘industry demonstration effects’.  

Such cooperation helps manufacturers enhance their industry reputation and attract other clients. Meanwhile, partnering with technologically advanced clients allows manufacturers to collect usage data, which in turn improves product design and performance.  

The semiconductor equipment industry has high technical barriers and client verification barriers. The industry imposes strict requirements on equipment quality, stability, and technical parameters, and clients are cautious when selecting new equipment suppliers. As a result, semiconductor equipment companies face long cycles and high difficulties in client verification and market expansion.  

Under these circumstances, manufacturers may offer more favorable prices to enter new markets or acquire key clients. This pricing strategy is based on long-term market layout, rather than simply pursuing maximum profit from a single transaction.  

 

Technology Maturity and Competitive Dynamics  
The maturity of equipment technology and market competition also shape pricing strategies. For equipment with new technologies, manufacturers typically adopt a ‘premium pricing strategy’ to recoup high R&D investments.  

As technology matures and competition intensifies, manufacturers must adjust their pricing strategies to maintain market competitiveness. Currently, as cutting-edge chip production capacity operates at full load, even tech giants like NVIDIA face severe supply shortages. Despite the current seller’s market, chip foundries still compete fiercely with one another.  

This competitive landscape directly affects manufacturers’ pricing strategies. When competition intensifies, manufacturers may adjust prices to maintain or expand their market share.  

 

Unique Challenges in Semiconductor Equipment Pricing  

Semiconductor equipment pricing faces a series of unique challenges that complicate the process.  

- High R&D Costs: Semiconductor equipment requires advanced manufacturing and process technologies, leading to long R&D cycles and massive investment. These high R&D costs must be recouped through equipment sales, creating pressure on pricing decisions.  

- Long Client Verification Cycles: Due to the complexity of semiconductor equipment and production lines, the yield and stability of a single piece of equipment can have cumulative effects on the entire system, potentially leading to huge losses. The industry’s strict requirements for equipment quality, stability, and technical parameters, coupled with clients’ caution in choosing new suppliers, result in long cycles and high difficulties for equipment companies in client verification and market expansion.  

- Volatile Market Demand: The semiconductor industry exhibits obvious cyclical characteristics, with market demand fluctuating alongside macroeconomic conditions and technology innovation cycles. Manufacturers need to adjust pricing strategies according to market cycles—raising prices when demand is strong and offering discounts to maintain capacity utilization when demand is weak.  

 

Industry Impact of Differentiated Pricing  

The differentiated pricing strategy in the semiconductor equipment industry has a profound impact on industry development.  

On one hand, it ‘drives industry innovation’. By offering differentiated pricing to different clients, manufacturers can recoup R&D costs more effectively, incentivizing continuous technological innovation.  

On the other hand, it ‘intensifies market competition’. Pricing has become a key tool for manufacturers to compete for market share. For instance, Samsung has explicitly lowered its 2nm process wafer quote to $20,000—one-third lower than TSMC’s rumored $30,000 quote for the same process. For Samsung, this aggressive move is both a way to avoid idling its 2nm production lines and a necessary step to ensure return on investment.  

This competition ultimately shapes the structure and distribution of the global semiconductor industry. Large chipmakers can leverage their scale advantages and bargaining power to secure more favorable equipment prices, further strengthening their market position. In contrast, small and medium-sized chipmakers may face higher equipment procurement costs and need to seek differentiated competitive strategies. This dynamic balance constantly reshapes the competitive landscape of the semiconductor industry.  

 

A Rational View of "Dual Pricing" for Semiconductor Equipment  

Differentiated pricing for semiconductor equipment is not simple price discrimination; it is a complex pricing system shaped by multiple business considerations. It reflects the semiconductor industry’s traits of being technology-intensive, capital-intensive, and highly cyclical.  

For semiconductor equipment manufacturers, a reasonable differentiated pricing strategy helps recoup R&D costs, maintain capacity utilization, build long-term client relationships, and enhance market competitiveness. For chipmakers, understanding this pricing logic is essential for better planning equipment procurement strategies and optimizing total cost of ownership.  

In the global semiconductor industry—characterized by high investment and high risk—complex business logic and strategic considerations lie behind price differences. Only by deeply understanding these factors can industry participants make wiser decisions and drive the healthy development of the entire industry.  

 

In the future, as semiconductor technology advances and market conditions evolve, equipment pricing strategies will continue to develop. But one thing is certain: pricing semiconductor equipment will always be a **balancing act**—balancing short-term profits with long-term development, and balancing client value with business survival.