ASML & Samsung: MOU for Korean Research Center

On December 13th, ASML, a global leader in photolithography technology, announced a significant memorandum of understanding with South Korea's technology powerhouse, Samsung Electronics. This collaboration entails a joint investment of 1 trillion Korean won to establish a cutting-edge research center in South Korea. The primary objective of this partnership is to harness the capabilities of next-generation Extreme Ultraviolet (EUV) lithography machines for advancing semiconductor manufacturing processes.

In a parallel development, ASML disclosed the formalization of an Environmental, Social, and Governance (ESG) memorandum with SK Hynix. This strategic alignment between the two entities encompasses collaborative initiatives across various environmental, social, and corporate governance projects.

Recent reports from early last month underscore Samsung Electronics' commitment to acquire 50 sets of equipment from ASML over the next five years, with an average unit price of approximately 200 billion Korean won, culminating in a total procurement value of 10 trillion Korean won.

Samsung Electronics achieved a significant milestone in June 2022 by commencing mass production of the world's first 3nm process technology based on Gate-All-Around (GAA) architecture. As part of its ongoing efforts to secure additional EUV lithography machines, the company aims to enter the second generation 3nm process technology by the first half of 2024, achieve mass production of 2nm process technology in 2025, and attain production capability for 1.4nm process technology by 2027.

In pursuit of these objectives, Chairman Lee Jae-yong of the Samsung Group visited ASML headquarters in June 2022 for discussions on EUV procurement matters with ASML CEO Peter Bennink. Subsequent discussions occurred in November of the same year during Peter Bennink's visit to South Korea. Given the lead time of at least one year from order to delivery for EUV lithography machines, these discussions were anticipated to expedite the acquisition process.

As part of its strategic roadmap, ASML aims to unveil its first commercial High-NA (0.55 NA) EUV lithography machine by the end of 2023, with mass production slated for 2025. This technological advancement will empower customers, starting from 2025, to transition from traditional EUV multiple patterning with a numerical aperture of 0.33 to single patterning with a numerical aperture of 0.55 High-NA EUV, resulting in reduced process costs and enhanced production efficiency.