In a strategic alliance, Dutch chip equipment giant ASML and tech behemoth Samsung Electronics are set to invest a colossal $760 million, equivalent to 1 trillion South Korean won, to establish an advanced semiconductor manufacturing plant in South Korea.
This significant announcement unfolded during South Korean President Yoon Sook-Yeol’s four-day diplomatic visit to the Netherlands, aiming to foster a robust “semiconductor alliance” between the two nations, as reported by CNBC. ASML, the sole global producer of ultraviolet lithography machines crucial for crafting cutting-edge chips, aligns its efforts with Samsung, the world’s leading producer of dynamic random-access memory chips ubiquitous in smartphones and computers.
The collaboration underscores South Korean chip manufacturers’ dependence on ASML’s cutting-edge machinery, allowing them to craft swifter and more efficient chips than their industry counterparts. This symbiotic relationship is crucial for maintaining Samsung’s edge in the fiercely competitive semiconductor landscape.
During his visit to ASML’s headquarters, President Yoon, accompanied by King Willem-Alexander of the Netherlands, also toured a production site dedicated to next-generation electric cars. He expressed that this diplomatic visit would contribute to the establishment of a robust institutional structure, fostering intensive collaboration on global semiconductor supply chains. This collaborative effort becomes increasingly crucial as semiconductors ascend to the status of strategic assets, accompanied by growing geopolitical risks associated with global supply chains.