Samsung to Outsource Low-End Photomask Production

Samsung is reportedly considering outsourcing the production of photomasks used in memory chip manufacturing, marking a significant shift from its longstanding practice of in-house production aimed at preventing technology leaks. The company is currently assessing potential partners for producing low-end photomasks—specifically i-line and KrF types—with Tekscend Photomask, a subsidiary of Japan's Toppan Holdings, and PKL, owned by U.S.-based Photronics, under review. This evaluation process is expected to conclude in the third quarter.

Several factors have prompted Samsung to explore this outsourcing strategy. The company's existing equipment for i-line and KrF photomasks has become outdated and is no longer in production, making maintenance and replacement increasingly difficult. While concerns over intellectual property protection have historically driven Samsung's self-reliant approach, the company's once-dominant technological edge in this area has diminished, reducing the perceived risks of external collaboration.

Photomasks are essential components in semiconductor manufacturing, used to project circuit patterns onto silicon wafers using varying wavelengths of light. The type of photomask corresponds to the wavelength used: i-line at 365nm for basic circuits, KrF at 248nm for mid-resolution patterns, ArF at 193nm for more advanced designs, and EUV at 13.5nm for the most cutting-edge applications. By outsourcing the production of i-line and KrF masks, Samsung aims to reallocate resources and focus more heavily on developing next-generation ArF and EUV technologies.

Despite the strategic benefits, insiders note that producing photomasks internally remains more cost-effective for Samsung at present. Nevertheless, the potential transition could have a ripple effect across the industry. With the Korean photomask market valued at approximately 700 billion KRW and domestic manufacturers operating at over 90% capacity, increasing demand—particularly from fabless companies in China—has already placed pressure on supply. If Samsung proceeds with outsourcing, other semiconductor foundries such as DB Hitek could face greater challenges securing sufficient photomask volumes.