Agreement worth $760 million to build a state-of-the-art chip manufacturing plant in South Korea

Dutch chip equipment giant ASML and tech titan Samsung Electronics have joined forces, pledging a colossal $760 million investment in the construction of a state-of-the-art semiconductor manufacturing plant in South Korea. The groundbreaking announcement unfolded amid the four-day visit of South Korean President Yoon Sook-Yeol to the Netherlands, a visit strategically aimed at fostering 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, is a linchpin in the semiconductor industry. These machines play a pivotal role in the creation of advanced chips, including those powering the latest Apple iPhones, meticulously manufactured by Taiwan’s TSMC.

Samsung, a global juggernaut in dynamic random-access memory (DRAM) chips utilized in ubiquitous consumer devices such as smartphones and computers, sees this collaboration as an opportunity to fortify its position in the semiconductor landscape. South Korean chip manufacturers have long relied on ASML’s cutting-edge machines to fabricate chips that outpace competitors in speed and efficiency.

President Yoon’s visit to ASML’s headquarters, alongside King Willem-Alexander of the Netherlands, included a tour of a production site dedicated to next-generation electric cars. Yoon underscored the visit’s importance in establishing a well-organized institutional framework that will play a pivotal role in the global semiconductor supply chain. This move gains significance as semiconductors evolve into strategic assets, and geopolitical uncertainties surrounding global supply chains continue to escalate. The collaboration between ASML and Samsung marks a pivotal stride in shaping the future of semiconductor innovation and production.