Dutch chipmaker ASML upgraded its 2026 sales outlook on Wednesday, citing strong demand, even as China’s share of global shipments continued to decline and the firm braced for a potential new round of US export controls targeting China.

The company projected net sales for the year to fall between €36 billion (US$42.5 billion) and €40 billion, as it released its first-quarter results, up from its previous forecast of between €34 billion and €39 billion made in January.

The semiconductor industry’s momentum was picking up, fuelled by investments in artificial intelligence infrastructure, which were creating strong demand for advanced memory and logic chips, according to CEO Christophe Fouquet.

“We expect that supply will not meet demand for the foreseeable future,” Fouquet said.

ASML’s customers on the memory side were saying they were already sold out for the year, while customers on the advanced logic side continued to build capacity for the AI boom, he said.