Did Samsung ‘Steal’ an EUV Tool?
This week Samsung’s (005930.KS) Vice-Chairman and empire heir Lee Jae-yong visited with Peter Wennink, the CEO of ASML (ASML) in the Netherlands to discuss the future of semiconductor technology, market prospects, and the supply of EUV equipment, according to tech press, but it is also said that the trip had another purpose and that was to secure the purchase of an extra EUV tool, above the orders originally set for this year. With ASML as the only supplier of the EUV tools needed for semiconductor production at or below 7nm, Samsung’s ability to grow its chip business in order to catch up to leader Taiwan Semiconductor (TSM), is dependent on ASML, who has scheduled 51 such tools to be built this year.
Currently Samsung has been scheduled to receive 18 such tools while TSM is to receive 22, leaving 11 for other customers, so the trip from Korea to the Netherlands is said to also have been made to secure another EUV tool from ASML to help Samsung grow a bit more than originally planned. Samsung purchased a 3% stake in ASML in 2012 for $280.8m, which is worth ~$3.4b today, but Intel (INTC) and TSM also own stakes in the company (15% and 5% respectively), so being a stakeholder in ASML likely had little influence. That said, a visit from the heir to the Samsung fortune and the company’s 2nd largest customer does hold some sway. Whether it was enough to grab another $150m tool remains to be seen, but we expect it was more whether ASML can up the total number of units it produces this year, as we expect all of the other 11 units to be produced were already on order from other customers.
Currently Samsung has been scheduled to receive 18 such tools while TSM is to receive 22, leaving 11 for other customers, so the trip from Korea to the Netherlands is said to also have been made to secure another EUV tool from ASML to help Samsung grow a bit more than originally planned. Samsung purchased a 3% stake in ASML in 2012 for $280.8m, which is worth ~$3.4b today, but Intel (INTC) and TSM also own stakes in the company (15% and 5% respectively), so being a stakeholder in ASML likely had little influence. That said, a visit from the heir to the Samsung fortune and the company’s 2nd largest customer does hold some sway. Whether it was enough to grab another $150m tool remains to be seen, but we expect it was more whether ASML can up the total number of units it produces this year, as we expect all of the other 11 units to be produced were already on order from other customers.
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