AI's Impact on Semiconductor Industry Growth Outlook

The semiconductor industry anticipates significant long-term growth driven by AI, despite short-term recovery challenges.

### AI Opportunities and Market Recovery in the Semiconductor Industry
* 🚀 The industry continues to see a **significant opportunity and potential upside** in the short term, particularly with the **advancements in AI**.
* 🤖 AI has generated considerable excitement over the past few years and is expected to create **substantial opportunities for the semiconductor sector** in the long run.
* 💡 While some companies like NVIDIA and TSMC are thriving due to their **innovative products and manufacturing processes**, not all semiconductor manufacturers are benefiting equally from the AI wave.
* 📉 Traditional applications in mobile, PC, and automotive sectors are **recovering slower than anticipated**, causing concern among companies not directly involved in **AI advancements**.
* 🔍 The timeline for a full recovery in the semiconductor market remains uncertain, with some speculating it may **not occur until 2026**.
* 📊 Despite recent caution in the market, there is an expectation of growth for the industry, with **2025 still viewed as a potential growth year**.
* 📅 ASML anticipates growth, although not as high as previously expected, and looks forward to **continued growth in 2026**, though precise predictions remain challenging.

Last week. We said a few things, and I think the first thing we said was that we still see a huge opportunity for the industry, and we still see even upside in the short term. So, I think AI has been with us now for a couple of years, has created a lot of excitement. And like all our peers in the industry, I do believe that it will bring a tremendous opportunity for this industry. So, that's the first thing we have said. So, I said, in the long term, AI is going to build up the real strong opportunity for the industry. Now, in the short term, I think your Not everyone is surfing yet on the AI wave. I think some companies have been doing extremely well, and of course, NVIDIA comes to mind, TSMC, because they are providing the first one, the products, the second one, the process that is going to manufacture the product. So, they're very strong. I think you see, and I'm sure you will see that in the

weeks to come, a very, very strong demand. Now what we also said is that not every semiconductor manufacturer is involved in the way some of them are doing chips for more traditional applications, mobile, PC, automotive. And that part of the market is not, you know, recovering as quickly as we hoped and it does recover. So we see progress and people are reporting that. But it's slower maybe than a lot of us expected. And I would say that concern quite a few companies, all the companies, in fact, that today are not directly benefiting from the air. But that's a bit to the split of the market we see today at least. Does that mean that we shouldn't expect a full recovery until 2026? Well, that's always very difficult to say because, you know, it is something we watch every quarter. You know, last week people were maybe a bit disappointed that we didn't give

more heads up. But that's something we just keep watching. And, you know, in the last three months, for example, we have seen that people were starting to push the brake. When do they start to push the accelerator again? We don't know because, you know, when you become cautious, it usually takes a bit of time before you look at the longer term again. But, you know, long term, we see growth. We see tremendous opportunity, which means that at some point of time, this has to come 2025. By the way, we still see it as a growth year for the industry. For ASML, the growth is not as high as I think a lot of people expected by then, but still a growth year. And we also expect '26 to be a growth year. But it's too early to, you know, to quantify that in very high accuracy or very high precision.

ASML CEO Says AI Offers 'Huge Opportunity'

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The speaker believes there is a significant opportunity for the industry due to AI, with potential short-term and long-term benefits.

While some companies, like NVIDIA and TSMC, are thriving by providing products and manufacturing processes, not all companies are fully leveraging the AI wave yet.

The speaker is confident that AI will create a strong opportunity for the industry in the long run.

The semiconductor market is experiencing strong demand, but not all manufacturers are involved in the recovery, particularly those focused on traditional applications.

The recovery in these areas is slower than expected, causing concern for many companies.

Predicting a full recovery by 2026 is challenging, as the market is monitored on a quarterly basis.

There has been a recent trend of caution among people, making it uncertain when they will resume aggressive growth.

Despite this, long-term growth and opportunities are anticipated, with 2025 and 2026 expected to be growth years for the industry.

ASML's growth in 2025 may not meet high expectations, but it is still projected to be a growth year.