Samsung Electronics and SK hynix are set to gain from synergy with American Applied Materials (AMAT) and Lam Research following the Dutch company ASML establishing a Research and Development (R&D) center in South Korea, based on market share in the semiconductor equipment industry.
According to the semiconductor industry on Dec. 14, Samsung Electronics and ASML agreed on Dec. 12 (local time) at ASML’s headquarters in the Netherlands to jointly invest 1 trillion won in building a research facility in South Korea to develop advanced semiconductor microprocessing technology. This Next-Generation Semiconductor Manufacturing Technology R&D Center will focus on developing ultra-fine processes based on next-generation Extreme Ultraviolet (EUV) technology. It marks the first time for ASML to establish an R&D center for semiconductor manufacturing process development in collaboration with a semiconductor manufacturing company overseas.
The industry expects the R&D center to be located in Hwaseong, Gyeonggi Province. This is due to ASML’s ongoing construction of its New Campus in Dongtan 2 City, Hwaseong, which includes the Korean branch’s new office building, training center, and equipment refurbishing re-manufacturing center, with completion aimed for 2025. The proximity of Samsung Electronics’ semiconductor hub, the Hwaseong Campus, which currently operates a production line with ASML EUV equipment, also increases the likelihood of this site selection.
Previously, Applied Materials, the world’s leading semiconductor equipment company, announced it was scouting for a site in Gyeonggi Province to establish a core research center for next-generation advanced semiconductor equipment.
Applied Materials had announced the establishment of a semiconductor equipment research institute in Gyeonggi Province during a North American investment announcement ceremony held on Sept. 22, 2022 (local time), coinciding with President Yoon Suk-yeol’s visit to the United States to attend the United Nations General Assembly. The Applied Materials Korea Research Institute is expected to be located near the Samsung Electronics and SK hynix semiconductor factories in Yongin, Hwaseong, and Pyeongtaek cities in Gyeonggi Province.
Following ASML, Lam Research, the world’s third-largest company in terms of revenue, unveiled its 30,000 square meter comprehensive R&D facility, the Korea Technology Center, in the Janggok neighborhood of Yongin in April last year. Lam Research is already operating major business infrastructure in Korea, including a manufacturing plant, logistics center, customer support center, marketing and sales office, and R&D center, being the first global equipment company to do so.
The reason for the world-renowned semiconductor equipment companies’ large-scale investments in South Korea is attributed to the high status South Korea holds in the semiconductor market. AMAT’s market share in Korea (18%) is third highest after China (27%) and Taiwan (21%). ASML’s market share in Korea is also high at 29% (as of last year), second only to Taiwan’s 38%. In terms of regional sales, South Korea ranks second for Lam Research, but including our companies’ factories in China, the actual ranking rises to first.
According to global market research firm Omdia, in the last quarter, Samsung Electronics led the DRAM memory semiconductor market with a 39.4% share, followed by SK hynix at 35%, nearly accounting for 75% of the global DRAM market. In the NAND Flash market as well, Samsung Electronics and SK hynix maintain the lead with a 55% market share.