Samsung Exits All ASML Stocks, Profits Surge Over 16x!

As per Samsung's disclosed 2023 annual financial report, the company successfully divested its entire remaining stake of 1,580,400 shares (constituting 0.4% ownership) in ASML, a prominent Dutch photolithography machine manufacturer, during the fourth quarter of 2023. This strategic move is anticipated to generate an estimated cash inflow of approximately 12 trillion Korean won, equivalent to around 65 billion Chinese yuan.

In 2012, Intel, TSMC, and Samsung jointly invested in ASML to bolster the development and commercialization of ASML's cutting-edge EUV lithography machines. In July 2012, Intel acquired a noteworthy 15% stake in ASML and contributed a substantial $1 billion towards research and development. Following suit in August 2012, TSMC secured a 5% stake in ASML, committing to a substantial 276 million euros over a five-year period to support research and development initiatives. Simultaneously, Samsung acquired a 3% stake in ASML and injected an additional 275 million euros into R&D. The total investment made by Samsung in ASML during 2012 amounted to 3.63 trillion Korean won, approximately 19.8 billion Chinese yuan.

Despite being the smallest stakeholder among the three entities, Samsung has proven to be exceptionally lucrative. TSMC divested its ASML stocks in 2015, and Intel gradually divested holdings in 2017 and 2018. Although Samsung sold approximately half of its ASML shares in the third quarter of 2016, resulting in a cash inflow of around 7.5 trillion Korean won, the company retained an approximate 1.6% stake.

In the second quarter of 2023, Samsung further optimized its ASML portfolio, reducing its holdings from 6.2979 million shares in the first quarter to 2.7501 million shares in the second quarter, marking a reduction of 3.5477 million shares. This translated to a decrease in ownership percentage from 1.6% to 0.7%, and a corresponding reduction in market value from approximately 55.9 trillion Korean won to 26 trillion Korean won, with an expected cash inflow of around 30 trillion Korean won (approximately 163.7 billion Chinese yuan).

During the third quarter of 2023, Samsung continued its divestment strategy, liquidating approximately 0.3% of its ASML shares and realizing a cash inflow of approximately 1.34 trillion Korean won. With the culmination of divestment activities in the fourth quarter of 2023, Samsung Electronics has successfully exited its holdings in ASML. Cumulatively, Samsung has garnered 6.29 trillion Korean won from the divestment, surpassing its initial investment of 3.63 trillion Korean won by over 16 times.