ASML changes its plans for the $755 million chip research plant with Samsung

It's only natural for there to be synergy between ASML, the Dutch company that makes the coveted EUV machines for modern chipmaking, and Samsung, one of the world's leading contract chip manufacturers. Samsung buys these machines from ASML to build chips for its customers.

The two companies had announced a $755 million deal in December 2023 to build a semiconductor research plant in South Korea. However, it appears that ASML has had a change of plans regarding this project.

The two companies were supposed to set up a joint chip research center in Hwaseong, South orea. After the deal was announced, ASML acquired six plots of land measuring approximately 19,000 square meters to build this facility.

The latest reports out of South Korea indicate that ASML has already sold off two of those plots and is in the process of selling an additional two. The remaining two aren't nearly enough to build a research center on so they're likely to be sold as well.

This naturally led to speculation that perhaps the deal between ASML and Samsung had fallen through. However, the two companies have reaffirmed their support to the project, they're just going to do things a bit differently.

They're looking at ways to develop the research center more efficiently and quickly. An industry official cited in the report claims that discussions on building the R&D center inside an existing Samsung facility are also underway.

Perhaps the nature of this cooperation has changed or ASML doesn't want a partnership stake in the project and would rather assist in a facility set up independently by Samsung, either way, it's going to kick the can further down the road. Setting up such technologically advanced facilities takes time so it may be a few years before we see something concrete materialize.