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South Korea’s new state-of-the-art chip factory receives investment

Samsung Electronics and Dutch chip equipment manufacturer ASML have announced a joint investment of 1 trillion South Korean won ($760 million) to establish a state-of-the-art semiconductor manufacturing plant in South Korea.

The announcement was a highlight of South Korean President Yoon Sook-Yeol’s four-day visit to the Netherlands, aiming to forge a robust “semiconductor alliance” between the two nations, as reported by CNBC. ASML, renowned as the sole producer of ultraviolet lithography machines crucial for crafting advanced chips, plays a pivotal role in fabricating cutting-edge components, including those featured in the latest Apple iPhones, manufactured by Taiwan’s TSMC.

As the world’s foremost manufacturer of dynamic random-access memory (DRAM) chips integral to consumer electronics like smartphones and computers, Samsung’s collaboration with ASML underscores their commitment to advancing chip technology. South Korean chip producers heavily rely on ASML machines to engineer swifter and more efficient chips, providing them with a competitive edge in the global market.

During the visit to ASML’s headquarters, President Yoon, accompanied by King Willem-Alexander of the Netherlands, explored a production site dedicated to next-generation electric cars. Yoon expressed that the Netherlands visit aims to establish a meticulously structured institutional framework fostering intensive collaboration in global semiconductor supply chains. This initiative comes at a crucial juncture when semiconductors evolve into strategic assets, and geopolitical risks associated with global supply chains continue to escalate.