Samsung signs deal with ASML to gain advantage in the chip race

Samsung has recently signed a deal with Netherlands-based semiconductor chip equipment maker ASML, the only company that makes advanced EUV (Extreme Ultraviolet) chip-making equipment of 7nm or better. Each of these EUV machines costs millions of dollars. Each of these EUV machines costs millions of dollars and ASML can only manufacture 40-50 such machines. 

Both companies will reportedly invest in building a semiconductor chip research plant in South Korea and engineers from ASML and Samsung Electronics will work together to improve the EUV chip fabrication technology.  

Samsung Electronics president Lee Jae-yong said to the press that he is satisfied with the business deals signed with the Dutch firm ASML. Lee said that most of the achievements made there were focused on semiconductor chips. 

Rather than solely focusing on acquiring 2nm chip-making equipment for South Korea, Samsung's agreement with ASML underscores the establishment of a partnership with the Dutch firm. This strategic move aims to optimize the utilization of the next-generation equipment by the Korean tech giant. 

ASML is anticipated to unveil equipment for producing 2nm node chips in the upcoming months. The advanced equipment will enhance light collecting capability from 0.33 to 0.55, enabling chip makers to employ ultrafine patterning technology for crafting chips based on 2nm nodes. 

Reports suggest that ASML plans to manufacture ten such pieces of equipment in 2024, with Intel already securing six of them. Over the next few years, ASML intends to ramp up the production capacity of these chips to 20 units per year.