Technology
Wednesday, December 13th, 2023 3:12 pm EDT
Key Points
- Joint Investment in Semiconductor Plant: Dutch chip-making equipment manufacturer ASML is partnering with South Korean chip giant Samsung Electronics to jointly invest 1 trillion South Korean won (approximately $760 million) in building a plant for the development of cutting-edge semiconductor processing technology in South Korea. This collaborative effort aims to advance semiconductor technology and strengthen the semiconductor industry in both countries.
- Semiconductor Alliance and Technological Innovation: The announcement of the joint investment coincides with the visit of South Korean President Yoon Suk-yeol to the Netherlands, seeking to forge a “semiconductor alliance” between South Korea and the Netherlands. ASML, renowned as the world’s sole producer of extreme ultraviolet (EUV) lithography machines crucial for advanced chip manufacturing, is at the forefront of technological innovation. South Korea’s presidential office emphasized the global impact of ASML’s technological innovation, stating that it is becoming a driving force for the Fourth Industrial Revolution. The collaboration also involves the establishment of new facilities in South Korea for production, research and development (R&D), and talent training by Dutch semiconductor companies such as ASML and ASM.
- Strategic Collaboration and Turning Point for Ties: The collaboration extends beyond ASML and Samsung, involving South Korean chip giant SK Hynix, the world’s second-largest DRAM chipmaker. ASML is set to collaborate with SK Hynix to reduce power usage and costs for EUV machines through the implementation of hydrogen gas recycling technology. The partnership is described as a “turning point” for the Korea-Netherlands semiconductor alliance, with President Yoon highlighting the significance of semiconductors as the linchpin of Korea-Netherlands cooperation. The visit to the Netherlands is viewed as an opportunity for both countries to establish a well-organized institutional framework to address global semiconductor supply chains, recognizing the strategic importance of semiconductors and the growing geopolitical risks associated with global supply chains.
Dutch chip-making equipment manufacturer ASML and South Korean chip giant Samsung Electronics are set to jointly invest 1 trillion South Korean won (approximately $760 million) in the establishment of a cutting-edge semiconductor processing technology plant in South Korea. This significant announcement coincided with the visit of South Korean President Yoon Suk-yeol to the Netherlands, where the objective is to strengthen a “semiconductor alliance” between the two nations.
ASML holds a unique position as the sole producer of extreme ultraviolet (EUV) lithography machines, crucial for manufacturing advanced chips, including those found in the latest Apple iPhones produced by Taiwan’s TSMC. The collaboration between ASML and Samsung seeks to advance semiconductor processing technology, with a specific focus on the production of faster and more efficient chips used in consumer devices like smartphones and computers.
South Korea’s presidential office emphasized ASML’s role in driving technological innovation, describing it as a potent force propelling the Fourth Industrial Revolution globally. It noted that Dutch semiconductor companies, including ASML and ASM, are establishing new facilities in South Korea dedicated to production, research and development (R&D), and talent training.
During his visit to ASML’s headquarters, President Yoon, accompanied by King Willem-Alexander of the Netherlands, toured the production site of next-generation EUV machines. These EUV machines are crucial for the production of cutting-edge semiconductor chips and play a pivotal role in the semiconductor supply chain.
Samsung, recognized as the world’s largest producer of dynamic random-access memory (DRAM) chips used in various consumer devices, particularly smartphones and computers, relies on ASML’s EUV machines to manufacture high-performance chips, giving it a competitive edge.
In addition to the collaboration with Samsung, ASML is set to engage with South Korean chip giant SK Hynix, the world’s second-largest DRAM chipmaker. This collaboration aims to reduce power consumption and costs associated with EUV machines through the implementation of hydrogen gas recycling technology.
President Yoon, ahead of his visit, emphasized the critical role of semiconductors in the cooperation between South Korea and the Netherlands. He referred to ASML as a key player, producing lithography equipment essential for semiconductor manufacturing. The president anticipated that the visit and collaborative efforts would mark a turning point for the semiconductor alliance between the two nations. He highlighted the importance of establishing a well-organized institutional framework to address global semiconductor supply chains, given the strategic significance of semiconductors and the increasing geopolitical risks surrounding global supply chains. The visit and collaboration are seen as crucial steps in navigating and strengthening the global semiconductor landscape.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/12/13/samsung-and-asml-to-build-an-advanced-chip-plant-in-south-korea.html
