Lee Jae-yong's Effort on EUV... Samsung Electronics to Double DRAM EUV Process This Year

Samsung Electronics Expands Adoption of EUV Equipment for DRAM Process
Following 3 Units Last Year, 3 More Units Planned This Year
Plans to Mass-Produce EUV-Based 1a DRAM This Year
Securing EUV Equipment Directly Linked to Improved Fine Process Productivity

[Asia Economy Reporter Suyeon Woo] As competition intensifies to secure extreme ultraviolet (EUV) lithography equipment due to the miniaturization of semiconductor processes, Samsung Electronics is doubling the number of EUV machines used in this year's DRAM process, thereby expanding the technological gap in the memory semiconductor sector. EUV equipment is a critical asset in semiconductor manufacturing, so important that last year Samsung Electronics Vice Chairman Lee Jae-yong personally visited the headquarters of the sole manufacturer, ASML in the Netherlands, to request supply.

According to industry sources and Samsung Securities on the 16th, Samsung Electronics secured around 10 EUV machines last year and is expected to bring in an additional 10 units this year. Among these, 3 machines were used in the DRAM process last year, and 3 more will be applied this year, totaling 6 units. With the number of EUV machines for DRAM doubled compared to the previous year, Samsung plans to secure more than the cumulative 6 units next year as well.

EUV equipment is used to draw circuits on wafers, the base material of semiconductors. EUV has a wavelength approximately 14 times shorter than the conventional argon fluoride (ArF) light, making it advantageous for drawing fine circuits. This means that semiconductor size can be reduced while lowering defect rates and increasing production volume. It is similar to how using colored pencils allows for finer details on smaller paper compared to using crayons.

Until now, EUV equipment was mainly applied in foundry (contract manufacturing) processes, but last year Samsung Electronics succeeded in mass-producing first-generation 10-nanometer-class (1x) DRAM based on EUV, leading to expanded adoption in memory semiconductor processes. Recently, competitor SK Hynix also introduced two EUV machines at its new M16 plant and announced plans to produce fourth-generation 10-nanometer-class (1a) DRAM starting in the second half of the year. In the past, existing equipment was sufficient for DRAM production, but as processes have miniaturized below 10 nanometers, securing EUV equipment is directly linked to production competitiveness.

The problem is that EUV equipment is expensive, costing up to 150 billion KRW per unit, and production is limited to about 30 to 40 units annually, making supply difficult to secure. The sole manufacturer ASML supplies EUV machines to TSMC, Samsung Electronics, SK Hynix, and others. According to ASML's sales distribution last year, Taiwan accounted for 33.8% and South Korea 29.7%, indicating that Taiwan receives more EUV equipment than South Korea.

ASML announced plans to produce 40 EUV machines this year, and rumors suggest that about half have already been secured by foundry competitor TSMC. In response, Samsung Electronics is actively competing to secure equipment and plans to increase EUV-based production not only in foundry but also in DRAM processes. Samsung Securities analyst Minseong Hwang said, "Samsung Electronics, with its vast financial resources and concurrent foundry semiconductor business model, can enjoy a first-mover advantage in EUV equipment. The advantage in securing equipment will directly translate into technological superiority in DRAM."

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