[Chipformation] Semiconductor Industry's 'Super Eul (Eul)' ASML

[Asia Economy Reporter Park Sun-mi] Dutch semiconductor equipment company ASML will hold a groundbreaking ceremony for a semiconductor cluster in Hwaseong, Gyeonggi Province on the 16th of this month. This follows the signing of a memorandum of understanding (MOU) with Hwaseong City and Gyeonggi Province last year and the announcement of investment plans for a new campus in Hwaseong. ASML plans to invest 240 billion KRW from this year through 2024 to build the Hwaseong semiconductor cluster, which will cover an area of 16,000㎡ and house ASML’s semiconductor equipment manufacturing center as well as extreme ultraviolet (EUV) and deep ultraviolet (DUV) training centers. The groundbreaking ceremony this month will be attended by ASML’s CEO Peter Wennink and other key executives.

ASML holds absolute influence in the lithography field, the most critical process in semiconductor manufacturing technology. It is the undisputed number one in the global semiconductor lithography equipment market. ASML plays a key role in the production lines of top semiconductor manufacturers such as Samsung, TSMC, SK Hynix, and Intel.

The semiconductor lithography process refers to the technology of drawing extremely fine and complex electronic circuits onto semiconductor wafers. A circuit pattern mask is placed on a wafer coated with photoresist, and light is shone so that only the exposed parts are developed. The core of this technology is using light with a short wavelength to increase precision. As semiconductor circuit line widths have transitioned from micron (μm) scale to nanometer (nm) scale processes since the 2000s, the wavelength of light (light source) in the lithography process has become especially important.

In particular, the use of EUV lithography systems is essential for mass production of high value-added 7-nanometer semiconductors, and ASML holds exclusive technology for EUV systems. EUV has a wavelength of 13.5 nm, which is very short, enabling even finer semiconductor circuit implementation. The annual production volume of EUV equipment is around 40 units, with a base price exceeding 200 billion KRW per unit. However, because it is indispensable for ultra-fine processes, competition among semiconductor companies to secure it early is fierce. Moreover, ASML is also researching and developing High-NA technology (increasing the existing 0.33 NA value to 0.55 NA) to apply to processes below 3 nanometers, which are currently demanded by the semiconductor industry, indicating that ASML’s influence is expected to grow further.

ASML’s focus on the Korean market is influenced by the presence of global semiconductor companies Samsung Electronics and SK Hynix, as well as the recent increase in policy support for the semiconductor industry. Korea accounted for about 35% of ASML’s total sales of 18.6 billion euros last year, making it a key revenue country. This means that without ASML equipment, Korean companies cannot produce semiconductors using the most advanced processes.

Since ASML Korea, led by CEO Lee Woo-kyung, was established in 1996 to support the first equipment installed in Korea, it has been providing not only the latest equipment but also technical services to maintain equipment performance, playing a core role in the Korean semiconductor industry.

Despite challenges such as inflation and economic recession shaking the semiconductor industry, ASML is on a solid path as sales of its core product, EUV equipment, continue steadily. ASML’s third-quarter sales reached 5.78 billion euros, nearly a 10% increase from a year ago, and it expects fourth-quarter sales to be between 6.1 billion and 6.6 billion euros, with a total margin of 49%.