ASML Equipment Supply Emerges as Risk to Korea’s Chip Expansion

South Korea’s ambitious semiconductor expansion plans face a new potential constraint: securing enough advanced manufacturing equipment as global demand for chipmaking tools accelerates.

ASML, the dominant supplier of sophisticated lithography systems, has warned that planned increases in its production capacity may not be sufficient to meet customer demand in 2027 and 2028. Chief Executive Christophe Fouquet said the company’s plan to raise equipment capacity by 30 percent in each of those years would still leave it unable to fulfill all anticipated orders.

The warning matters for Samsung Electronics and SK hynix as both companies prepare major fabrication projects in Korea. Their expansion strategies rely on timely access to extreme ultraviolet lithography systems used to print the finest circuit patterns, as well as deep ultraviolet immersion systems used across a broader range of semiconductor processes. Both types of equipment are essential for advanced memory production.

ASML said customer discussions are increasingly extending beyond 2027, with substantial order activity for 2028 and interest already emerging for 2029 and 2030. The company is holding off on accepting some orders for the latter two years while it assesses customer readiness and its own ability to supply the systems.

In Yongin, Gyeonggi Province, separate semiconductor clusters are planned around fabrication facilities operated by SK hynix and Samsung. SK hynix has begun construction and is targeting October 2027 for production at its first fabrication plant. Samsung is scheduled to break ground later this month and plans to begin operating its first Yongin plant in 2029.

The two chipmakers also plan large-scale manufacturing sites in the Jeonnam-Gwangju Special Metropolitan City area under a government-backed regional development initiative. Local authorities are aiming for construction to start next year and mass production in 2030, although the companies have not publicly confirmed detailed schedules.

Industry officials caution that the current situation does not yet amount to an equipment bottleneck, particularly because ASML is expanding capacity. However, they say prolonged demand growth could produce supply constraints later in the decade. Semiconductor equipment commonly carries delivery lead times of 18 months to two years, making early procurement decisions important for plants expected to begin production near 2030.

The emerging risk adds another layer to Korea’s chip policy debate. Government support for new clusters has largely focused on land development, electricity supply and construction timetables. The availability of highly specialized production tools could now become equally important in determining whether planned facilities begin operating on schedule. For Samsung and SK hynix, coordinating factory construction with long-term equipment orders will be central to turning large investment commitments into usable production capacity.