Kwon Oh-hyun: "US Orders Samsung Investment Because of Technology... Losing Technology Means Becoming Left Out"

Special Interview for 30 Years of Korea Semiconductor Industry Association
Former Vice Chairman Kim Gwang-ho: "Samsung Considered Acquiring ASML in 1982 but Gave Up"

Kwon Oh-hyun, former Chairman of Samsung Electronics (current Senior Advisor)

[Asia Economy Reporter Jeong Hyunjin] "The important thing is technology. If Samsung Electronics loses its technology, it will become sidelined."

Kwun Oh-hyun, former chairman of Samsung Electronics (currently an honorary advisor) who led Samsung's 'semiconductor myth,' emphasized the importance of technological leadership regarding the Biden administration's demand for Samsung Electronics' semiconductor factory investment in the U.S. As Samsung Electronics Vice Chairman Lee Jae-yong visits the U.S. for the first time in five years and is about to announce a $17 billion (approximately 20 trillion KRW) investment in a U.S. factory soon, Kwun, a senior figure who led Samsung before, mentioned the challenges ahead.

Advisor Kwun, an engineer-turned-professional manager, became vice chairman and head of the semiconductor (DS) division at Samsung Electronics in 2012 and served as CEO for five years thereafter. After finishing his term as chairman of Samsung Electronics’ Advanced Institute of Technology, he stepped down as an advisor last year. He participated in a special interview as the 6th chairman (2008?2011) of the Korea Semiconductor Industry Association to commemorate the association’s 30th anniversary, recently published in the "30 Years History of the Korea Semiconductor Industry Association."

According to the interview on the 23rd, Advisor Kwun explained, "The reason the U.S. invites Samsung Electronics or Taiwan's TSMC to semiconductor meetings or orders fab investments in the U.S. is because of Samsung’s and TSMC’s technology," adding, "They are seeking their advanced semiconductor manufacturing capabilities." Since last year, Samsung Electronics has been negotiating incentives with local governments, considering Texas locations such as Austin and Taylor, Arizona’s Queen Creek and Goodyear, and New York as potential investment sites. As Advisor Kwun mentioned, Samsung has continued intense discussions to maximize benefits, considering the U.S.'s intention to expand semiconductor manufacturing capabilities.

The 30-year history of the Semiconductor Industry Association revealed a behind-the-scenes story that Samsung Electronics tried to acquire the Dutch semiconductor equipment company ASML, known as a ‘super subcontractor,’ 40 years ago. ASML is the only company worldwide that produces EUV lithography equipment capable of engraving circuits below 5 nanometers (nm; 1 nm is one-billionth of a meter). Major semiconductor companies such as Samsung Electronics, SK Hynix, Taiwan’s TSMC, and U.S. Intel actively seek to purchase this equipment. Currently, Samsung Electronics holds a 1.5% stake in ASML as of the third quarter of this year.

Kim Kwang-ho, former vice chairman of Samsung Electronics and the first chairman of the Semiconductor Industry Association (1992?1997), recalled a memorable event during Samsung’s semiconductor business development: "In 1982, Philips proposed that Samsung Electronics acquire ASML (then ASM) and visited the U.S. headquarters for due diligence." Kim said, "At that time, ASML was a young company, and Samsung’s situation was not abundant, so the acquisition was ultimately abandoned," reflecting, "Considering ASML’s unique EUV lithography technology, it is somewhat regrettable." Kim urged, "Just as ASML succeeded as a global semiconductor company, it is important to build a foundation of original semiconductor technology," adding, "In system semiconductors as well, we should not rely on others but lead the semiconductor era with our own original technology."