South Korea emerged as ASML Holding NV’s largest market in the first quarter, driven by heightened buying from memory-chip manufacturers responding to shortages linked to artificial intelligence demand. Shipments of ASML’s chipmaking equipment to South Korea accounted for 45% of net system sales in the quarter, up from 22% in the fourth quarter.
ASML recorded net system sales to South Korea of €2.84 billion ($3.34 billion) in the most recent quarter, compared with €1.67 billion in the prior quarter. The company said the memory segment represented more than half of its tool sales during the period, with South Korean firms playing a central role.
Samsung Electronics Co. and SK Hynix Inc. were identified as the leading memory manufacturers in South Korea. Reflecting the market backdrop, Chief Executive Officer Christophe Fouquet said in a video accompanying the results: "If we look at memory, what our customers tell us is that they are sold out for 2026. And their supply constraints will last beyond 2026."
In a related development cited by ASML, SK Hynix announced in March plans to spend nearly $8 billion on extreme ultraviolet lithography machines under a deal valid through 2027.
Taiwan was ASML’s second-largest market in the three months through March. By contrast, the company reported that China’s share of net system sales fell to 19% from more than a third in the fourth quarter.
ASML has guided that the Chinese market’s contribution to revenue would move to around 20%. The company is operating against the backdrop of US-led export restrictions intended to limit China’s progress in chip development. In addition, US lawmakers proposed legislation this month that would strengthen existing export curbs on chipmaking equipment, a move that could further reduce ASML’s sales into China.
Market context and company position
The shift in geographic concentration of ASML’s sales underscores the outsized influence of memory demand on the company’s near-term revenue mix. South Korea’s heavy ordering activity amplified ASML’s exposure to the memory sector, while geopolitical and regulatory pressures have coincided with a notable decline in China’s revenue contribution.
Note: The company provided the sales breakdown and commentary in its quarterly report and accompanying materials.