Samsung, the second-biggest contract chip fabrication firm in the world, has set its sights firmly on TSMC. The company wants to become the world's biggest semiconductor chip company by 2030. To that end, the company is said to be buying more advanced chip fabrication equipment from ASML.
Samsung wants to own over 100 EUV chip fabrication equipment
The South Korean firm will reportedly (via @Tech_Reve) import additional EUV (Extreme Ultraviolet) chip fabrication equipment from ASML, the Netherlands-based firm that is the leader in the segment, next year. While the exact details of the new deal aren't public yet, some reports claim that Samsung Electronics will import a total of 50 units from ASML over the next five years. Each such unit is valued at KRW 200 billion (around $153 million).
EUV exposure is the most important part of making chips, and it accounts for more than half of the cost and time. Unlike older processes, EUV equipment imprints the circuit design on a chip in one go. However, EUV equipment is very costly and complex to make. Apparently, they are more complex to make than satellites, and ASML can only make around 60 EUV equipment each year, and only five chip firms in the world need that equipment: Intel, Micron, Samsung Foundry, SK Hynix, and TSMC. Currently, 70% of the EUV equipment that ASML makes is purchased by market leader TSMC.
Samsung Foundry was the world's first company to make 3nm chips. It started making first-generation 3nm chips in the second half of 2022, and it is expected to start mass production of second-generation 3nm chips in the first half of next year, making it a prime contender for fabricating the Exynos 2500 (tentative name). Samsung aims to make 2nm chips in 2025 and 1.4nm chips in 2027.
Take a look at our hands-on video of the Samsung Odyssey OLED gaming monitor below.
To secure these ultra-rare EUV machines from ASML, Samsung Electronics chairman Lee Jae-yong traveled to the Netherlands last year. He met ASML CEO Peter Bennink to secure the order of EUV machines. South Korean president Yoon Suk Yeol, along with Samsung Electronics chairman Lee Jae-yong and SK Group (SK Hynix) Chairman Chey Tae-won, will reportedly travel to the Netherlands (from December 12 to December 13) after being invited by Dutch King Willem-Alexander.
Samsung is creating funds to buy more chip equipment
This will be the first time a South Korean president is traveling to the Netherlands to meet the state leadership since the countries established diplomatic ties back in 1961. Dutch Prime Minister Mark Rutte visited South Korea in November 2022 for strategic business ties. Samsung invested around KRW 700 billion in ASML in 2012 to buy a 3% stake. However, the company has since sold most of its stake in the company. Recently, Samsung sold 0.3% of its stake in ASML to create funds to buy new equipment. It now holds just 0.4% in the Dutch chip equipment manufacturer.
Recently, Samsung Electronics hired Ahn Yoo-jung as an executive vice president of the Samsung Design Management Center. Ahn, an industrial design expert, was leading industrial design for Google's Waymo, a self-driving technology company. The company also hired Shin Chong-kyu to lead its global manufacturing and infrastructure technology. He was earlier working for the French firm Veolia, a waste and water recycling firm.
