ASML CEO Christophe Fouquet warned that Musk’s semiconductor ambitions tied to Tesla Inc.(NASDAQ:TSLA), xAI and SpaceX could further strain an already tight global chip industry. “Demand on AI is coming so strongly that we will be in a supply-limited market for quite a while,” Fouquet told Reuters on the sidelines of a May 19 tech event in Antwerp, Belgium.
ASML expects the global semiconductor market could eventually reach $1.5 trillion by 2030 as AI-related demand accelerates, he said.
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Musk’s TeraFab Could Pressure Global Chip Capacity
Fouquet said he has spoken directly with Musk about the proposed TeraFab initiative, which is intended to support semiconductor production tied to AI and autonomous systems. “He’s very serious about all those projects,” Fouquet told Reuters, referring to Musk’s semiconductor and satellite ambitions.
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ASML Expands High-NA EUV Production
ASML dominates the global market for extreme ultraviolet lithography systems, or EUV tools, which are required to manufacture many leading-edge semiconductors used in AI systems.
Despite increasing production, Fouquet said forecasting long-term chip demand remains difficult as AI infrastructure spending accelerates globally.
Fouquet said the company is also developing a new advanced-packaging tool designed to support larger AI chip packages as semiconductor architectures become increasingly complex. “Right now it’s a small leg,” he said. “But in the future, this presents a new opportunity for ASML.”
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Europe Faces Growing AI Competition
Fouquet warned that Europe risks falling behind in AI adoption because of regulatory complexity and slower AI infrastructure deployment.
“People are attracted by the EU market, but they are usually scared about the amount of regulation and the complexity you have in Europe to do anything,” Fouquet told Reuters.
He also said tighter restrictions on chip-equipment exports to China could accelerate the country’s efforts to develop competing domestic semiconductor technologies.
“If I put you in a desert and tell you you’re not going to have access to food anymore — how long does it take you to make your own garden?” Fouquet said. “It’s a matter of survival.”
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