In a partnership driven by the governments of the Netherlands and South Korea, Dutch semiconductor equipment manufacturer ASML and Samsung have agreed to invest $761 million in establishing a new research and development (R&D) facility in South Korea. This initiative aims to strengthen ties between the two countries and forms part of South Korea’s broader plan to form a “semiconductor alliance” with the Netherlands.
The collaboration will lead to the creation of ASML’s first offshore R&D center and a Next-Generation Semiconductor Manufacturing Technology R&D Center, focusing on the joint development of advanced processes based on next-generation extreme ultraviolet lithography (EUV) technology. This partnership is significant as ASML's primary product, lithography machines for wafer fabs, including EUV equipment, is crucial for the production of advanced chips. The company holds a unique position in the industry as the sole supplier of this equipment, which is vital for the advancement of leading-edge logic and memory chips.
The establishment of the R&D facility in South Korea will enable Samsung to work closely with ASML to develop processes and recipes for next-generation nodes, fostering collaboration without the need for Samsung engineers to travel to the Netherlands. This proximity is expected to facilitate a stronger partnership and accelerate research efforts, particularly as ASML aims to further align itself with two of its significant customers, Samsung and SK Hynix, South Korea’s second-largest chipmaker.
During a visit to ASML's headquarters in Veldhoven, South Korean President Seok-Yeol Yoon observed ASML’s production site for next-generation EUV lithography equipment and engaged with representatives from ASML, SK Hynix, Samsung, and several Europe-based semiconductor equipment manufacturers.
Furthermore, the semiconductor market is currently experiencing pressure from the US to limit exports of advanced chips to China due to geopolitical tensions and concerns about potential military and surveillance applications. This has led to a push for domestic self-sufficiency in chip manufacturing within the US and an emphasis on building a robust domestic supply chain.
Consequently, countries with established semiconductor supply chains, such as Taiwan, China, and South Korea, are intensifying their efforts to maintain their technological advantage. The collaboration between ASML and Samsung signals a strategic move to stay ahead in chip manufacturing technology.
Recognizing the shortage of skilled semiconductor workers, the Netherlands and South Korea have established the “Korea-Dutch Advanced Semiconductor Academy” to provide hands-on learning opportunities for graduate students from both countries using state-of-the-art semiconductor production equipment. The first training session, which will host 100 participants from both nations, is scheduled to commence in the Netherlands in February 2024.
