Investing.com -- South Korea became ASML Holding NV's largest market in the first quarter as memory chip manufacturers increased purchases to address shortages linked to artificial intelligence demand.

Shipments of the Dutch company's chipmaking tools to South Korea reached 45% of net system sales in the first quarter, up from 22% in the fourth quarter. Sales totaled €2.84 billion ($3.34 billion) in the recent quarter, compared to €1.67 billion in the previous period.

Samsung Electronics Co. and SK Hynix Inc. are leading memory chip manufacturers in South Korea. ASML reported Wednesday that the memory chip market accounted for more than half of its tool sales in the period.

"If we look at memory, what our customers tell us is that they are sold out for 2026. And their supply constraints will last beyond 2026," Chief Executive Officer Christophe Fouquet said in a video accompanying results.

SK Hynix announced plans in March to spend nearly $8 billion on extreme ultraviolet lithography machines in a deal valid through 2027.

Taiwan ranked as ASML's second largest market in the three months through March. China's contribution to net system sales dropped to 19% from more than a third in the fourth quarter.

ASML has said the Chinese market's contribution to revenue would fall to about 20%. The company has been navigating US-led export restrictions aimed at limiting China's chip development.

US lawmakers proposed legislation this month that would strengthen existing export curbs on chipmaking equipment, which could further reduce ASML's sales to China.