Samsung Strengthens Chip Production with Dutch EUV Technology By CIOTechOutlook Team

Samsung Strengthens Chip Production with Dutch EUV Technology

CIOTechOutlook Team | Thursday, 16 November 2023, 02:38 IST

Samsung is rapidly investing in new chipmaking equipment in order to replace Taiwan Semiconductor Manufacturing Company (TSMC) as the world's biggest semiconductor chip maker by 2030. The South Korean tech behemoth's approach is based on the acquisition of extreme ultraviolet (EUV) lithography machines from ASML, a leading Dutch corporation specialized in this vital technology. Samsung's ambitious plan calls for importing 50 EUVs over the next five years, with each unit costing a whopping $153 million. This move is part of the company's larger objective of having more than 100 EUV machines.

The significance of EUV technology in semiconductor manufacturing cannot be overstated; it enables single-step imprinting of intricate circuit designs onto chips and is responsible for more than half of the production cost and time. Despite its efficiency, the complexity and expense of EUV machines mean that ASML can only produce around 60 units annually. TSMC currently secures about 70% of these units, as per investing.

Samsung Foundry seized the lead in making first-generation 3nm chips in 2022 and is preparing to mass-produce second-generation 3nm chips, which might include the Exynos 2500, next year. Not only did the business show off its Odyssey OLED gaming monitor, but it also announced ambitions to manufacture even smaller 2nm chips by 2025 and even smaller 1.4nm chips by 2027.

Last year, Samsung Electronics (KS:005930) Chairman Lee Jae-yong met with ASML CEO Peter Bennink in the Netherlands to clinch an order for EUV machines in a strategic move. Following this visit, Dutch King Willem-Alexander extended an invitation to South Korean President Yoon Suk Yeol, Lee Jae-yong, and SK Group Chairman Chey Tae-won, who are scheduled to visit the Netherlands on December 12-13.