Why is ASML so sought after by Samsung?

Tram Ho

The company that holds the “heart” of the semiconductor industry

ASML is currently the world’s largest manufacturer of photolithography systems for use in the semiconductor industry. The company was founded in 1984 as ASM Lithography by a joint venture between Dutch electronics giant Philips and chip maker Advanced Semiconductor Materials International (ASMI).

Lý do ASML được Samsung săn đón? - Ảnh 1.

ASML – The holder of the “heart” of the chip industry.

Initially, the company faced many financial difficulties, they had to rent a dilapidated warehouse next to the Philips office in Eindhoven, the Netherlands. The company’s first lithography system, called the PAS 2000 stepper, was released that same year. In 1988, ASML expanded into the Asian market after the company established a joint venture foundry in Taiwan. But, at this time the company was still a small company and experienced fierce competition in a market with many suppliers.

As the global electronics industry was in recession, Philips announced it was embarking on significant cost-cutting measures. Meanwhile, ASMI’s major shareholder also withdrew after investments in operations yielded low returns. At this point, ASML’s existence is like a “bell curtain” and is mainly based on belief in its research and development capabilities.

The company managed to secure enough funding to develop the PAS 5500, a groundbreaking platform released in 1991 that helped it compete with major competitors such as Canon and Nikon. However, at the crucial moment, the PAS 5500 proved to be a trump card for the company.

During the 2000s, ASML released systems with revolutionary technology. The TWINSCAN system exposes one wafer while the next is being measured and aligned, maximizing system productivity and accuracy.

Then, in 2007, the company acquired leading semiconductor designer and manufacturer BRION Technologies for $270 million, and the two companies then pooled resources to optimize the entire process. chip production. Several other acquisitions were subsequently made in the 2010s, including lithographic light source maker Cymer and electron beam measuring instrument supplier Hermes Microvision.

However, ASML’s biggest breakthrough was the fact that the company worked on the world’s first ultraviolet lithography (EUV) prototype. This new technology is considered to usher in a new era in lithography because it produces faster, more powerful chips.

Lý do ASML được Samsung săn đón? - Ảnh 2.

Samsung Electronics Chairman Jay Y. Lee visits ASML in the Netherlands.

Currently, ASML makes money selling semiconductor manufacturing machines. More specifically, they sell ultraviolet lithography (EUV) printers that use ultraviolet light technology to print circuit pattern designs onto silicon wafers. The company now has more than 90% share in the EUV lithography market, with each machine costing around $150 million. Some of their major customers include Samsung and Intel.

In addition, the company also sells software to meet industry needs for higher productivity, lower costs, and simpler chip manufacturing processes. Software upgrades are also a significant source of their revenue as customers are always looking to increase capacity quickly. Over the typical 20-year life of a transistor, these upgrades can bring a company up to 50% of the original purchase price. ASML’s annual revenue is now over $22 billion.

Why is ASML so sought after?

Recently, ASML CEO Peter Wennink visited Korea. Here, he was warmly received by South Korean President Yoon Suk-yeol and two of the country’s largest Chaebol Group presidents, Samsung Chairman Lee Jae-yong and SK Group Chairman Chey Tae-won.

Lý do ASML được Samsung săn đón? - Ảnh 3.

Samsung Chairman Lee Jae-yong and ASML CEO Peter Wennink.

According to the presidential office, South Korean President Yoon Suk-yeol has voiced a proposal for ASML to invest more in Korea. “If ASML builds a manufacturing plant or R&D center here, like the decision to build a repair center and an engineer training center, both countries will be better able to cope with the chain reorganization. global semiconductor supply,” the South Korean president said.

It is no coincidence that the CEO of ASML is so sought after. Simply because the Dutch semiconductor company is the only manufacturer of ultraviolet lithography (EUV) printers in the world. In addition, ASML is also considering additional investments in Korea in the near future.

Currently, ASML has broken ground on a semiconductor cluster worth 240 billion won ($180 million) in Hwaseong, Gyeonggi Province of South Korea. Along with that, the Dutch company’s engineering and repair training centers are also currently under construction in the southern city of Seoul, where Samsung’s semiconductor factories are located.

With the construction of this semiconductor cluster, Samsung and SK hynix are expected to enhance their competitiveness in the global market by reducing reliance on parts shipped from the Netherlands for repair and maintenance. Maintain chip manufacturing equipment.

In fact, Korean chip manufacturers like Samsung and SK have been using ASML’s EUV machines. Therefore, they are looking to strengthen their relationship with the Dutch company, to deal with stiff competition with Taiwan’s TSMC. Samsung’s president even visited ASML’s headquarters in the Netherlands to meet the company’s CEO in June.

However, despite being so sought after, ASML is still uncertain about opening a production facility in Korea. They are putting things on the balance when it comes to relations with Korea and playing with Taiwan. Recently, they launched the largest investment plan ever in Taiwan next year with the amount of nearly 1 billion USD.

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Source : Genk