To become the world’s largest chip manufacturer, Samsung reportedly acquired more EUV machines from ASML for hundreds of millions of dollars.
More details on this deal are yet to be known, but some local news outlets reported that Samsung is acquiring 50 EUV machines in the next five years, each costing around $153 million. Ahead of Samsung, TSMC is the world leader in chip production and a big customer of ASML, acquiring 70% of it’s EUV machines.
EUV Machines For Mass Chip Production
One of the many businesses in which Samsung excels is the chip production, through its dedicated arm called Samsung Foundry, where the South Korean giant mints billions of dollars annually.
While it’s a thriving business, Samsung can only improve it by adding critical equipment called EUV(Extreme Ultraviolet) machines – which imprint the circuit design on a chip in one go. This modern method is so important that it accounts for more than half of the chip-making cost and time.
And there’s only one company in the world that makes such machines – ASML, from the Netherlands. So, in pursuit of becoming the world’s biggest semiconductor company by 2030, Samsung is reportedly acquiring 50 EUV units from ASML over the next five years, each costing KRW 200 billion (around $153 million).
— Revegnus (@Tech_Reve) November 14, 2023
Samsung has already advanced in the 3nm chip race by being the first to manufacture them in H2 2022. It’s also preparing to make the second-generation 3nm chips in H1 2024, to produce its next flagship, Exynos 2500(tentative name). Further, Samsung aims to mass produce 2nm chips in 2025 and 1.4nm chips in 2027.
This latest deal will advance these plans to help Samsung achieve it’s chip-making goals and surpass TSMC one day. Currently, TSMC is the world’s largest chip-making company with notable clients like Apple, NVIDIA, Qualcomm, etc.
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