Samsung Targets 50 Additional ASML EUV Machines in 5 Years

Samsung, a prominent global player in semiconductor manufacturing, is strategically positioning itself to rival TSMC as it aspires to secure the top spot as the world's leading semiconductor chip manufacturer by 2030. Recent reports indicate that Samsung is actively pursuing additional cutting-edge chip manufacturing equipment through collaborations with ASML, a renowned technology supplier.

Insiders reveal that Samsung is in the process of negotiating the import of more EUV lithography machines from ASML, based in the Netherlands, by the year 2024. While specific details regarding the deal are currently undisclosed, Samsung plans to acquire a total of 50 of these state-of-the-art devices over the next five years, with an estimated value of approximately $153 million per unit.

EUV exposure plays a pivotal role in the advanced semiconductor chip manufacturing process, constituting over half of the total time and cost involved. Given the intricate nature of these lithography machines, ASML can only manufacture around 60 units annually. Globally, five major chip manufacturers, including Intel, Micron, Samsung, SK Hynix, and TSMC, heavily rely on ASML's EUV lithography machines. Presently, TSMC accounts for a significant 70% of ASML's EUV lithography machine acquisitions.

Samsung's semiconductor foundry holds the distinction of being the first in the world to produce 3nm process chips. Despite this achievement, Samsung faces stiff competition from TSMC, which is already mass-producing 3nm A17 Pro chips and M3 series chips for tech giant Apple. Samsung is poised to commence production of its second-generation 3nm chips in the first half of 2024, followed by the production of 2nm process chips in 2025 and 1.4nm process chips in 2027.

In a strategic move to ensure a steady supply of the scarce EUV lithography machines, Samsung's Chairman, Lee Jae-Yong, undertook a visit to the Netherlands in 2022, engaging in discussions with ASML's CEO, Peter Bennink. Recent reports reveal that South Korean President Yoon Suk-yeol, in response to an invitation from Dutch King Willem Alexander, is slated to visit the Netherlands alongside Samsung's Chairman Lee Jae-Yong and SK Group's Chairman Chey Tae-won on December 12-13. This visit underscores the significance of international collaborations in the semiconductor industry.