Korea and Dutch summits, chip industries leaders discuss stronger chip alliance

[Photo provided by Office of the President Republic of Korea]

South Korean President Yoon Suk-yeol and Dutch Prime Minister Mark Rutte agreed to upgrade the two countries’ relationship to “strategic partners” and act on their earlier promise to enhance private-sector chip alliance.

The two leaders met Thursday for the second time after a bilateral meeting on the sidelines of the NATO summit in June to deepen ties in a wide range of fields from security and economy to cultural and social issues.

Chips were at the top of their discussions as the two countries are home to leaders in advanced chipmaking and chip equipment.

“We have agreed to further strengthen mutually complementary cooperation as the Netherlands is a powerhouse semiconductor equipment, and Korea commands supremacy in chipmaking,” said Yoon.

Chiefs from chip-related majors were invited to a tea talk before the summit.

Samsung Electronics Co.’ Chairman Jay Y. Lee and Chey Tae-won of SK Group, parent SK hynix, attended the meeting, along with Chief Executive Officer Peter Winnink of ASML Holdings.

Peter Wennink, chief executive of ASML

ASML is a monopolistic supplier of extreme ultraviolet exposure equipment, essential for ultra-fine chip processes beyond 10-nanometer. EUV lithography equipment costs 200 billion won per unit but competition over them is heavy among advanced chipmakers as the Dutch maker provides just 40 units a year.

Samsung Electronics and SK hynix Inc., whose orders made up 30 percent of the Dutch company’s revenue last year, have been working hard to keep up close relationship with ASML. Samsung Electronics’ Lee visited ASML’s head office in the Netherlands in June and met with Winnink to discuss smooth supply and demand for EUV exposure equipment.

ASML is also expanding its business in Korea by targeting major customers such as Samsung Electronics and SK Hynix. The Hwaseong Campus, which is expected to be completed in 2024 has a remanufacturing center for deep ultraviolet and EUV equipment parts and a training center to transfer advanced technologies. The remanufacturing center will reassemble and repair equipment and parts supplied to Korean companies. ASML may set up research and development centers or manufacturing facilities in South Korea.