ASML and Samsung Partnership To Bring $760 M Investment in South Korea

Samsung and ASML have entered into a $755 million deal to establish a semiconductor chip research plant in South Korea. The agreement was formalized on the inaugural day of South Korean President Yoon Suk Yeol’s official visit to the Netherlands, where Dutch King Willem-Alexander invited him.

ASML Holding NV and Samsung Electronics Co will jointly invest $760 million, equivalent to 1 trillion won, to construct a semiconductor processing technology facility in South Korea. 

This research and development (R&D) center, dedicated to advancing ultraviolet lithography equipment, is ASML’s first offshore facility. The plant will leverage ASML’s exclusive extreme ultraviolet equipment technology. It is crucial for manufacturing high-end chips, as detailed in a statement by the Netherlands-based company.

South Korean President Yoon Suk Yeol has become the first foreign leader to visit ASML’s ‘clean room’ during his official visit to the Netherlands. The visit is also an important collaboration between ASML and Samsung, aiming to establish a strong chip alliance in the highly intricate semiconductor chip sector. Major chip makers, including Samsung Foundry and TSMC, widely utilize ASML’s chip equipment.

The new semiconductor processing technology facility expands ASML’s footprint in South Korea, where it currently operates four sites catering to clients, including Samsung. 

The strategic move towards geographic diversity is pivotal, considering ASML’s unique technology’s central role in the ongoing trade tensions between the United States and China. 

Dutch semiconductor giants, including ASML and ASM, are actively investing in new facilities for production, research and development, and talent training in South Korea. During the visit to ASML’s headquarters, South Korean President Yoon Suk Yeol, accompanied by Dutch King Willem-Alexander, toured the production site of next-generation EUV machines, emphasizing the key role of ASML’s technologies in artificial intelligence and 5G communications.

The collaboration between ASML and Samsung plans to establish a Next-Generation Semiconductor Manufacturing Technology R&D Center. This center aims to jointly develop ultra-fine processes based on next-generation extreme ultraviolet lithography (EUV), a unique technology from ASML crucial for advanced chip production. 

The strategic alliance is a part of South Korean President Yoon’s plan to strengthen the chip alliance between the two nations, involving businesses, governments, and research universities. Furthermore, the nations have unveiled plans for a “Korea-Netherlands Advanced Semiconductor Academy,” creating educational opportunities for students and workers in South Korea to enhance their expertise in the semiconductor domain.

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