In a bid to overtake Taiwan Semiconductor Manufacturing Company (TSMC) as the world's leading semiconductor chip producer by 2030, Samsung is aggressively investing in advanced chipmaking equipment. The South Korean tech giant's strategy hinges on acquiring extreme ultraviolet (EUV) lithography machines from ASML (AS:ASML), a premier Dutch firm specializing in this critical technology. Samsung's ambitious plan includes importing 50 EUV units over the next five years, with each unit priced at a hefty $153 million. This move is part of the company's broader goal to possess over 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.
Samsung Foundry took the lead in producing first-generation 3nm chips in 2022 and is gearing up to mass-produce second-generation 3nm chips next year, which may include the Exynos 2500. The company not only showcased its Odyssey OLED gaming monitor but also announced plans to fabricate even smaller 2nm chips by 2025 and further down to 1.4nm by 2027.
In a strategic move last year, Samsung Electronics (KS:005930) Chairman Lee Jae-yong met with ASML CEO Peter Bennink in the Netherlands to secure an order for EUV machines. This visit was followed by an invitation from Dutch King Willem-Alexander to South Korean President Yoon Suk Yeol, Lee Jae-yong, and SK Group Chairman Chey Tae-won, who are slated to visit the Netherlands on December 12-13.
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