In a strategic move set against the backdrop of South Korean President Yoon Sook-Yeol’s visit to the Netherlands, Dutch chip equipment manufacturer ASML and tech giant Samsung Electronics have announced a monumental investment of 1 trillion South Korean won ($760 million). This substantial capital injection aims to construct an advanced semiconductor manufacturing plant in South Korea.
The announcement unfolded as part of President Yoon’s four-day diplomatic mission, seeking to forge a formidable “semiconductor alliance” between the Netherlands and South Korea, as reported by CNBC. ASML, renowned as the sole producer of ultraviolet lithography machines crucial for crafting cutting-edge chips, holds a pivotal role in the semiconductor industry. These machines are integral to the creation of sophisticated chips, such as those adorning the latest Apple iPhones, manufactured by Taiwan’s TSMC.
Samsung, a global titan, stands as the leading producer of dynamic random-access memory chips ubiquitous in consumer devices like smartphones and computers. South Korean chip manufacturers heavily rely on ASML’s state-of-the-art machines to fabricate chips with superior speed and efficiency, placing them at the forefront of technological innovation.
During his visit to ASML’s headquarters, President Yoon, accompanied by King Willem-Alexander of the Netherlands, embarked on a tour of a cutting-edge production site for next-generation electric cars. Yoon emphasized that this diplomatic mission serves to establish a robust “institutional structure” fostering intensive collaboration in the global semiconductor supply chains. This strategic move unfolds amidst the backdrop of semiconductors evolving into strategic assets, and escalating geopolitical risks associated with global supply chains.
