Samsung Electronics and Dutch semiconductor equipment company ASML will jointly invest $760 million (1 trillion won) to build a semiconductor research plant in South Korea dedicated to developing ultrafine semiconductor manufacturing technologies.

The plant will use extreme ultraviolet (EUV) lithography, equipment made exclusively by ASML that is needed to produce cutting-edge chips.

Korean President Yoon Suk Yeol, left, meets with Dutch King Willem-Alexander, center, and ASML CEO Peter Wennink at the ASML headquarters in Veldhoven, Netherlands on Dec. 12. / Yonhap

Samsung and ASML’s deal was followed by Korean President Yoon Suk Yeol’s state visit to the Netherlands, said the Trade Ministry on Dec. 13. Yoon is the first Korean president to make a state visit to the Netherlands since the two countries established diplomatic ties in 1961.

Samsung Electronics Executive Chairman Lee Jae-yong and SK Group Chairman Chey Tae-won joined Yoon on his two-day state visit and ASML headquarters tour in Veldhoven, the Netherlands. Samsung Electronics and SK Hynix, two of the world’s leading memory chipmakers, are major customers of ASML.

The partnership marks the first time the Dutch equipment maker is building a research fab outside the Netherlands with another chipmaker.

“The latest partnership between Samsung Electronics and ASML will serve as a stepping stone for Korea to gain an upper hand in the global semiconductor market, where competition to produce ultrafine chips is becoming increasingly fierce,” said Korea’s Trade Minister Ahn Duk-geun.

SK Hynix also signed a deal with ASML to jointly develop hydrogen recycling technology to improve the energy efficiency of EUVs.

The two countries also announced plans to set up a “Korea-Netherlands Advanced Semiconductor Academy” to train 500 workers in the field of advanced semiconductors over the next five years. The academy will provide Korean semiconductor-related students and workers with education opportunities at ASML headquarters in the Netherlands and Eindhoven University of Technology.

ASML is one of the biggest manufacturers of chipmaking equipment. The Dutch company specializes in lithography machines, which are essential in producing advanced chips. The machines, which cost up to $230 million (300 billion won) per unit, are used by global chipmakers such as Taiwan Semiconductor Manufacturing Company, Samsung Electronics and Intel.

This article was originally published on Dec. 13, 2023.