ASML CEO Reportedly Says Elon Musk's Terafab, Starlink Will Drive Huge Chip Demand — ‘One Of The Most Fascinating Projects For Me Is Starlink’

• Fouquet added that projects like Musk’s Terafab will stretch the capacity of chip toolmakers in the coming years, adding that the Tesla CEO is “very serious” about these projects, referring to Starlink satellites and Terafab.
• He said the first logic chips produced using ASML’s next-generation High-NA EUV lithography machines are expected within months.
• Fouquet said that he sees the chip market remaining supply-constrained for the foreseeable future due to strong AI demand.

ASML Holding NV (ASML) CEO Christophe Fouquet on Wednesday said that projects like Elon Musk’s Terafab and Starlink will drive huge chip demand.

During an interview with Reuters on the sidelines of a tech event in Antwerp, Fouquet said that Terafab and Starlink satellites could drive a new wave of chip demand.

“One of the most fascinating projects for me is Starlink because we talk a lot about chips, humanoids, self-driving cars, and all those products have to be connected to data,” he said.

ASML shares were up more than 3% in Wednesday’s opening trade.

Musk’s Terafab To Stretch Toolmakers’ Capacity, Says Fouquet

Fouquet added that projects like Musk’s Terafab will stretch the capacity of chip toolmakers in the coming years, adding that the Tesla CEO is “very serious” about these projects, referring to Starlink satellites and Terafab.

He said the first logic chips produced using ASML’s next-generation High-NA EUV lithography machines are expected within months, marking a major milestone for advanced chipmaking.

The High-NA EUV systems, which enable smaller and more powerful semiconductors, are expected to become a key long-term growth driver for ASML, with Intel among the earliest adopters of the technology.

ASML CEO Sees Tight Supply Due To Strong AI Demand

Fouquet said that he sees the chip market to remain supply-constrained for the foreseeable future due to strong AI demand. He also sees demand from robotics and satellites as contributing to this tight supply situation.

“Demand on AI is coming so strongly that we will be in a supply-limited market for quite ​a while,” Fouquet said.

He added that ASML is ramping up production and improving the efficiency of its chipmaking tools to meet surging demand, while continuing to roll out next-generation technologies.

However, Fouquet warned that the scale and speed of the AI-driven semiconductor boom remain difficult to forecast and could outpace the industry’s ability to plan capacity and supply chains effectively.

What Does ASML Do?

ASML is a Dutch technology company that makes highly advanced machines used to manufacture semiconductor chips.

The company is best known for its EUV lithography machines, which are extremely complex systems that use ultraviolet light to print tiny transistor patterns onto silicon wafers.

Chipmakers like Nvidia Corp. (NVDA), Taiwan Semiconductor Manufacturing Co. (TSMC), Intel Corp. (INTC), Micron Technology Inc. (MU), and others use ASML’s tools.

TSLA Loops In INTC For Terafab Project

Last month, Tesla entered into a partnership with Intel for the Terafab project to make processors to power the EV giant’s robotics and data center ambitions.

“Our ability to design, fabricate, and package ultra-high-performance chips at scale will help accelerate Terafab’s aim to produce 1 TW/year of compute to power future advances in AI and robotics,” Intel said.

ASML stock is up 36% year-to-date, while TSLA stock is down 9%. The iShares Semiconductor ETF (SOXX) is up 142% over the past 12 months, while the Global X Artificial Intelligence & Technology ETF (AIQ) is up 49%.

Also See: Jeff Bezos Backs Elon Musk's 'Very Realistic' Plan For Space-Based Data Centers Ahead Of SpaceX IPO

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