Samsung Electronics and Dutch semiconductor equipment company ASML are set to invest a total of 700 million euros to build a future semiconductor technology research and development (R&D) center in South Korea. The center’s primary goal is to develop ultra-fine manufacturing processes and necessary lithography equipment based on next-generation extreme ultraviolet (EUV) technology.
On Dec. 12 (local time), Samsung Electronics announced that it had signed a memorandum of understanding (MOU) with ASML at its headquarters in Veldhoven, the Netherlands, to jointly establish and operate a center dedicated to researching next-generation semiconductor manufacturing technology, investing 700 million euros. This marks the first time ASML has established an R&D center overseas in collaboration with a semiconductor manufacturing company.
The exact investment amounts of both companies have not yet been disclosed. The likely location for the R&D center is in Hwaseong, Gyeonggi Province, where Samsung Electronics and ASML have semiconductor production bases. Currently, ASML is constructing the Hwaseong New Campus, investing 240 billion won (US$185 million) in a 16,000-square-meter site near Samsung Electronics’ semiconductor plant, aiming to complete it by the end of 2024. This campus will include a re-manufacturing center for EUV and Deep Ultraviolet (DUV) equipment components and a training center.
Samsung Electronics and ASML’s joint venture to establish an EUV-based next-generation semiconductor manufacturing technology R&D center in South Korea is interpreted as a strategic alliance to stay ahead in the global technology supremacy race.
Samsung Electronics expects to achieve rapid yield stabilization (ratio of good products) through the optimization of EUV lithography equipment processes essential for ultra-fine semiconductor processes. ASML has strategically decided to partner with Samsung Electronics, a global leader in memory semiconductors, to acquire expertise in next-generation memory exposure processes.
Particularly, Samsung Electronics is seen to have established a foundation for chasing the foundry industry leader TSMC in the 2-nm competition. It also creates an opportunity to narrow the technological gap with its competitor TSMC in the ultra-fine process of 3 nm and below. The number of EUV lithography equipment currently owned by Samsung Electronics is estimated to be half that of TSMC. Samsung Electronics’ competitiveness in next-generation semiconductors could significantly hinge on securing ASML’s next-generation EUV equipment, the “High Numerical Aperture (NA)” for processes below 2 nm.
The semiconductor industry views the alliance between the top players in memory and equipment sectors as significant. EUV is essential for implementing ultra-fine processes in foundries (semiconductor contract manufacturing), and recently has become a key technology in cutting-edge memory (DRAM) processes. Starting from the 14-nm process in DRAM, EUV use becomes imperative due to yield and production cost issues. The EUV Alliance is thus seen as a significant move in developing next-generation memory processes.
Professor Park Jae-keun of Hanyang University’s Department of Convergence Electronics said, “For at least the next 10 years, DRAM production will require the application of EUV processes. As the EUV race among the top three memory companies [Samsung, SK Hynix, and Micron] is just beginning, Samsung’s partnership with ASML will likely maintain Korea’s dominant position in the market for the time being.”
Kyung Kye-hyun, president of Samsung Electronics’ Semiconductor Division, stated, “Samsung has developed through 30 years of cooperation with ASML. The strengthened collaboration between the two companies will significantly contribute to enhancing Europe’s semiconductor value chain and global supply chain stability.”
Meanwhile, SK hynix also announced its collaboration with ASML to jointly develop technologies to reduce power consumption and carbon emissions in the EUV process. Kwak No-jung, CEO of SK hynix, commented, “This will be the first exemplary case of the semiconductor industry contributing to the reduction of greenhouse gases.”