Dutch chip equipment manufacturer ASML and tech giant Samsung Electronics have committed a hefty $760 million, equivalent to 1 trillion South Korean won, to establish an advanced semiconductor manufacturing plant in South Korea. The joint investment, unveiled during South Korean President Yoon Sook-Yeol’s four-day visit to the Netherlands, marks a pivotal step towards cultivating a robust “semiconductor alliance” between the two nations, as reported by CNBC.
ASML, renowned as the sole global producer of ultraviolet lithography machines crucial for crafting cutting-edge chips, plays a pivotal role in the semiconductor landscape. These machines are integral in the production of high-performance chips, including those featured in the latest Apple iPhones manufactured by Taiwan’s TSMC.
Samsung, a juggernaut in the tech industry, holds the title of the world’s largest producer of dynamic random-access memory (DRAM) chips, extensively utilized in consumer devices like smartphones and computers. South Korean semiconductor manufacturers heavily rely on ASML’s cutting-edge machines, ensuring the production of faster and more efficient chips, giving them a competitive edge.
President Yoon’s visit to ASML’s headquarters, accompanied by King Willem-Alexander of the Netherlands, included a tour of a production site for next-generation electric cars. Yoon emphasized that the visit serves to strengthen the institutional structure between the two countries, fostering collaboration in global semiconductor supply chains. This collaboration becomes increasingly vital as semiconductors evolve into strategic assets, accompanied by growing geopolitical risks associated with global supply chains. The joint investment stands as a testament to the commitment of both ASML and Samsung in propelling innovation and securing their positions in the dynamic semiconductor industry.