Samsung, Along With ASML All Set To Invest $760 million For The Chip Plant In South Korea

ASML and Samsung have agreed to invest 1 trillion won in South Korea to create a plant to develop high-tech processing techniques for cutting-edge chips.

ASML, a Dutch chip-making equipment company, will invest 1 trillion South Korean won ($760 million) with South Korean chipmaker Samsung Electronics to create a plant in South Korea that will develop cutting-edge semiconductor processing technologies. A “semiconductor alliance” between the two nations is the purpose of South Korean President Yoon Suk-yeol’s four-day visit to the Netherlands, during which the news was released.

Extreme ultraviolet (EUV) lithography equipment, made solely by ASML, is essential to the production of cutting-edge chips like the ones used in the newest iPhones, which are made by TSMC of Taiwan. Dutch semiconductor firms ASML and ASM are building new R&D, manufacturing, and facilities in Korea.

The technological innovation led by ASML is becoming a powerful driving force of the Fourth Industrial Revolution around the world,

stated the president’s office in South Korea.

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Yoon paid a visit to ASML’s headquarters with King Willem-Alexander of the Netherlands and viewed the production site of next-generation EUV machines.

Korea-Netherlands relations reach a “tipping point”

Samsung is the world’s leading manufacturer of dynamic random-access memory chips, which are utilized in consumer electronics such as smartphones and . South Korean chipmakers use ASML’s EUV machines to generate faster and more efficient chips than competitors.  ASML will also partner with South Korean chip giant SK Hynix, the world’s second-largest DRAM chipmaker, to lower power usage and costs for EUVs using hydrogen gas recycling technology, according to the release.

The two nations also revealed their intentions to create the “Korea-Netherlands Advanced Semiconductor Academy,” an educational exchange program for Koreans interested in semiconductors. Foreign expertise is crucial to ASML’s expansion plans, as the company is experiencing a severe labor shortage.

When it comes to lithography systems, which are machines that carry out an essential phase in the production of semiconductors, ASML is without peer. Taiwan Semiconductor Manufacturing Co., Samsung, and Intel Corp. rely on its extreme ultraviolet lithography tools for cutting-edge production.