Picture Changed Significantly
With the enforcement of the European version of the Chips Act, and TSMC and Intel’s large-scale investment lineup continuing, the European Union (EU) has actively wooed domestic semiconductor companies that are hesitant about entering Europe. The focus is now on EU Internal Market Commissioner Thierry Breton, who oversees EU semiconductor policy, as he is scheduled to meet with Samsung Electronics Chairman Lee Jae-yong during his short visit to Korea starting on June 29.
According to industry sources on June 28, Commissioner Breton, who is visiting Korea, will begin his schedule on June 29 with a luncheon with the European Chamber of Commerce in Korea (ECCK) followed by a meeting with Industry and Trade Negotiation Chief An Deok-geun, and a meeting with Chairman Lee Jae-yong of Samsung Electronics.
During this visit, where cybersecurity, network neutrality, and information and communications technology (ICT) policy consultations are the main agenda, the meeting with Chairman Lee stands out. Previously, Commissioner Breton visited the Samsung Electronics Pyeongtaek factory during his visit to Korea in October 2021, and held a meeting with Choi Si-young, the head of the foundry business, and then-SK hynix CEO Lee Seok-hui, showing a special interest in the semiconductor supply chain.
Industry insiders are speculating that Commissioner Breton may request investment in the European region from Chairman Lee, based on his previous schedule. Last week, during his schedule in Silicon Valley, Commissioner Breton requested investment in Europe from the leaders of the semiconductor and AI industries, including NVIDIA CEO Jensen Huang, Qualcomm CEO Cristiano Amon, and OpenAI CEO Sam Altman.
An industry insider said, “The EU initially intended to support only ultra-fine processes of 5 nanometers (1 nm = 1 billionth of a meter) or less under the European version of the Chips Act.” But, they explained, “With TSMC announcing plans to produce 28-nanometer legacy (general-purpose) products in Europe, the picture has changed significantly, naturally drawing attention to attracting a factory from Samsung Electronics, the second-largest foundry.”
Not just Commissioner Breton, but also leaders of individual EU countries are actively pursuing Samsung Electronics to set up in Europe. Following the visit of Spanish Prime Minister Pedro Sanchez last November, French President Emmanuel Macron individually met with Chairman Lee Jae-yong and SK Chairman Chey Tae-won during his visit to Paris on June 21. Both leaders are believed to have discussed the semiconductor supply chain with Chairman Lee.
However, despite the ongoing courtship from European leaders, domestic semiconductor experts see the likelihood of Samsung Electronics and SK hynix investing in Europe as low. An industry expert said, “Europe lacks the preparedness in terms of skilled manpower except for some areas of automotive semiconductors related to the semiconductor ecosystem.” He further added, “The possibility of Samsung Electronics, which is currently planning to invest 300 trillion won domestically, building a new factory in Europe is extremely low.”