Samsung Electronics and ASML Holding N.V. have announced a joint investment of 1 trillion won ($760 million) to establish a state-of-the-art research and development (R&D) facility in South Korea. This partnership, formalized with a memorandum of understanding (MOU) at ASML's headquarters in Veldhoven, aims to drive the advancement of advanced memory chips using ASML's cutting-edge extreme ultraviolet (EUV) technology.
A Pioneering R&D Center
This R&D center is a groundbreaking initiative for ASML, as it marks their first overseas facility in collaboration with a semiconductor giant. The primary focus of the center will be on enhancing the manufacturing processes for semiconductors using ASML's latest EUV technology.
Symbolic Partnership
The presence of South Korean President Yoon Suk Yeol during the MOU signing ceremony at ASML's head office highlights the symbolic significance of this partnership. However, details regarding ownership ratios and spending distribution have not been disclosed.
Strategic Importance for Samsung
This collaboration holds great importance for Samsung, as the company aims to commercialize 2-nanometer chips by 2025, following the mass production of 3nm chips in the previous year. By leveraging ASML's expertise in EUV scanners for the 2nm process, Samsung can position itself strategically in the face of fierce competition with TSML, its rival.
Extended Collaboration
The collaboration between Samsung and ASML goes beyond the establishment of the R&D facility. ASML has also initiated the construction of a customer education and equipment support service center near Samsung's manufacturing base in Hwaseong. This additional investment by ASML, amounting to approximately 320 billion won, demonstrates their commitment to long-term collaboration.
SK Hynix Joins the Alliance
SK Hynix, another major player in the semiconductor industry, has also joined forces with ASML by signing an MOU. Their collaboration aims to develop hydrogen gas recycling technology for EUV machines, with the goal of significantly reducing power consumption and costs.
A Focus on Education
The partnership between South Korea and ASML extends beyond business interests to include education. The governments of South Korea and the Netherlands have signed an MOU to jointly nurture semiconductor talent, with three South Korean graduate schools collaborating with Dutch companies and institutions.
Forging a "Chip Alliance"
President Yoon Suk Yeol's visit to the Netherlands has a broader objective of establishing a "chip alliance" between South Korea and the Netherlands. This emphasizes the pivotal role of the semiconductor industry in bilateral ties. Given the increasing competition and tensions, particularly with China, the semiconductor sector has become a strategic focal point. The export restrictions on advanced chip-making equipment to China have intensified competition, making President Yoon stress the strategic importance of the semiconductor industry.
In conclusion, the joint investment by Samsung Electronics and ASML Holding N.V. in establishing a cutting-edge R&D facility in South Korea signifies a significant milestone in the semiconductor industry. With a focus on advanced memory chips and leveraging ASML's EUV technology, this partnership aims to drive innovation and strengthen the position of both companies in the global market. Furthermore, the extended collaboration with SK Hynix and the educational alliance between South Korea and the Netherlands highlight the comprehensive nature of this strategic partnership.
