ASML CEO Warns $1.5 Trillion Chip Market Will Stay Supply-Constrained as AI Demand Surges
Updated
Updated · Reuters · May 20
ASML CEO Warns $1.5 Trillion Chip Market Will Stay Supply-Constrained as AI Demand Surges
4 articles · Updated · Reuters · May 20
Christophe Fouquet said the semiconductor market will remain tight for the foreseeable future, with sporadic bottlenecks across the supply chain as demand outruns what the industry can produce.
AI is the main driver, he said, with additional demand coming from satellites, robots and projects such as Elon Musk's proposed TeraFab and Starlink expansion.
ASML is raising output and tool productivity, expects first logic chips made with its High NA EUV machines within months, and is developing a second advanced-packaging tool for larger AI chips.
Fouquet also urged the EU to ease or revamp its 2023 AI Act and called for clearer export-control rules on China, warning tighter curbs on older DUV tools could speed Chinese self-sufficiency.
As the US tightens its grip, is it accidentally fast-tracking the rise of a self-sufficient Chinese rival to ASML?
With its top customer delaying orders over cost, is ASML's next-gen tool becoming too expensive for the market to bear?
Can Elon Musk's bet on older chip tech with Intel sidestep the AI industry's reliance on ASML's cutting-edge machines?
AI-Driven Semiconductor Boom: How the $1.29 Trillion Chip Market Faces Supply Shocks and Geopolitical Risks in 2026
Overview
The global semiconductor market is booming, driven by soaring demand for AI and high-performance computing. TSMC has raised its 2030 market projection from $1 trillion to $1.5 trillion, reflecting a dramatic surge in AI compute needs over the past 18 months. The market is now expected to reach $1 trillion as early as 2026. In response, TSMC is rapidly expanding its manufacturing capacity, launching nine new wafer fabrication plant phases in 2026. At the same time, NVIDIA’s data-center revenue has skyrocketed from just over $1 billion in late 2019 to $51 billion in 2025, with even higher growth projected for 2026.