South Korea overtakes China as ASML's top market in 2026

In the first quarter of 2026, South Korea became ASML's largest market, representing 45% of its global sales. China, previously the top buyer, dropped to 19% due to Western export controls on advanced lithography technology. This shift marks a decisive realignment in the global semiconductor landscape.

ASML is the only company in the world that manufactures extreme ultraviolet (EUV) lithography machines. These systems are essential for producing chips smaller than 7 nanometers. Without access to EUV tools, no country can manufacture cutting-edge semiconductors. Sales data now serve as a direct indicator of technological power.

U.S.-led sanctions have progressively restricted China's access to ASML equipment. Since 2023, even advanced deep ultraviolet (DUV) systems have been limited. The Q1 2026 figures confirm these policies are now impacting real-world sales, not just strategic positioning.

South Korea's rise isn't just due to China's decline. Samsung and SK Hynix are heavily investing in high-performance memory chip production. These components are critical for AI data centers, where demand continues to surge without relief.

SK Hynix committed nearly 8.2 billion euros to EUV lithography tools for its Cheongju and Yongin fabs. Samsung placed a bulk order for around 20 EUV machines, part of a larger purchase of 70 systems for its P5 plant in Pyeongtaek. Both companies are accelerating their manufacturing scale-up.

ASML's total net sales in the quarter reached 8.8 billion euros, with a net profit of 2.76 billion euros, a 17% year-on-year increase. The company raised its full-year 2026 sales forecast to between 36 billion and 40 billion euros.

• South Korea: 45% of ASML sales (up from 22% in Q4 2025)
• China: 19% (down from 36%)
• Taiwan: 23% (up from 13%)
• Q1 2026 net sales: 8.8 billion euros
• Net profit: 2.76 billion euros (+17% year-on-year)

"Demand for AI is already sold out", said ASML CEO Christophe Fouquet. Memory customers have fully booked their production capacity for the year. Supply will not meet demand in the foreseeable future.

Demand for AI is already sold out

Without access to EUV machines, China relies on older DUV systems and multi-patterning techniques to approach the 7-nanometer node. This approach increases production costs and reduces chip performance. Firms like SMIC, ChangXin, and Yangtze Memory face a growing structural disadvantage.

South Korea's dominance in ASML purchases is not an isolated trend. It reflects a global race to secure manufacturing capacity at a time when elite semiconductors define leadership in AI, defense, and telecommunications.