The booming semiconductor market faces tight supply levels for the foreseeable future as demand from AI, satellites and robotic technology could see demand outstrip supply, according to Christophe Fouquet, CEO of European chip-making machine firm ASML.

In an interview with news agency Reuters, Fouquet warned that there is likely to be sporadic bottlenecks throughout the supply chain, adding: “Demand on AI is coming so strongly that we will be in a supply-limited market for quite a while.” He added that future plans such as Elon Musk’s Terafab AI development and Starlink satellites could further drive demand.

While he said ASML is boosting output and increasing productivity with the use of new, emerging manufacturing technology, he warned that the size of the boom is hard to predict and could potentially outstrip industry planning.

The Semiconductor Industry Association has reported US$298.5bn in global semiconductor sales for Q1 2026, a 25% increase over the previous quarter, with expectations that the industry could reach US$1trn in revenue this year.

Manufacturers are prioritising advanced nodes for AI and data centre chips which is tightening supply for legacy components. Geopolitical supply chain vulnerabilities are also raising concerns about the longer-term picture.


Meanwhile, a threatened strike by workers at Samsung’s chip manufacturing operations in South Korea has been at least temporarily halted. The dispute centred on the company’s plans to pay larger bonuses to staff making memory chips than those making less advanced chips in its other divisions.

The proposed strike, scheduled to run from 21 May until 7 June, had the potential to significantly impact supply chains as well as the local economy – semiconductors account for around 35% of South Korea’s exports. Instead, a new pay and bonus offer will be voted on by workers, with the results expected on 28 May.

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