Enter 2021.03.16 06:00
Over 9 times the market value of investment of 300 billion won
EUV core equipment for semiconductor production… 40 units produced per year
Samsung Electronics Preoccupies Advantageous Position in EUV Conflict
According to the Electronic Disclosure System of the Financial Supervisory Service on the 15th, the number of ASML shares held by Samsung Electronics as of the end of last year was 6,297,000,871, and the carrying amount (market value) was 3,350.5 billion won. It jumped more than 1 trillion won from the previous year (2,154.7 billion won). Compared to the acquisition cost (363 billion won), it has increased more than 9 times.
Earlier, if Samsung Electronics maintained a 3% stake in ASML that it held at the time in 2016, it could make a bigger profit. In 2012, when ASML tried to change technology with EUV equipment, TSMC, Samsung Electronics, and Intel made a rush to invest in equity. Intel and TSMC bought 15% and 5% of ASML shares, respectively, and Samsung Electronics 3%. Samsung Electronics is maintaining a 1.5% stake after retrieving the initial purchase amount by selling half of its stake in 2016.
Although Samsung Electronics has achieved high returns through its stake in ASML, it is analyzed that the intent to maintain a favorable position in securing equipment rather than simple investment purposes cannot be ignored. An official from a semiconductor company pointed out that “when the global semiconductor industry invested in ASML in the past, the order of supply of EUV exposure equipment was determined according to the stake ratio.”
Looking at the percentage of ASML sales last year, Taiwan accounted for 36% and Korea accounted for 31%. In 2019, Taiwan recorded 51%. This is interpreted as meaning that there were more EUV equipment heading to Taiwan than Korea.
ASML is the world’s only manufacturer and supplier of EUV exposure equipment. EUV is useful for drawing microcircuits because the wavelength of light is 14 times shorter than that of conventional argon fluoride (ArF). It is in the same context that if you use colored pencils when drawing on small paper, you can draw more elaborately than crayons. In recent years, the EUV exposure equipment has become an indispensable element in the semiconductor industry as it has reached ultra-fine processes below 5 nm from the 7 nm (nanometer·1 nm = 1 billionth of a meter) process. This is why Taiwanese TSMC and Samsung Electronics, the world’s first and second largest semiconductor foundry (consignment production), are vying for equipment supply from ASML.
However, compared to the demand for EUV exposure equipment, the supply is very scarce. The price per unit is known to be about 180 billion won, but only 31 units shipped last year. This is the background for TSMC and Samsung Electronics, which are the orderers, to become’Super Eul’, where they have no choice but to bow their heads. It is also well known that Lee Jae-yong, vice chairman of Samsung Electronics, visited ASML headquarters in the Netherlands and requested to secure supplies despite the new coronavirus infection (Corona 19) last year.
This year, 40 units are expected to be produced, and the world’s semiconductor industry is in full swing to secure it. SK Hynix recently announced that it has decided to import EUV equipment with an amount of KRW 4.75 trillion from this year to 2025. Considering the cost of transporting and installing equipment, it is estimated that a total of 17-18 units will be introduced.
TSMC has already announced that it will allocate about 80% of the total investment of 28 billion dollars (about 31 trillion won) this year to cutting-edge processes such as 3nm and 5nm. As Samsung Electronics is also working to equip production facilities in response to TSMC, it is observed that the EUV exposure equipment battle will intensify.