"Completion of Global Semiconductor Supply Chain Alliance"…Stable Securing of 2nm Equipment (Comprehensive)

Presidential Office: "Completed Supply Chain Connecting Materials, Parts, and Equipment to Manufacturing"
Attention to Timing of Alliance Upgrade... "Time to Firmly Establish Rebound Momentum"
Focus on Supplying and Procuring Advanced Equipment... "Securing EUV Equipment Is the Decisive Factor"

On the 13th (local time), the Presidential Office evaluated President Yoon Suk-yeol's state visit to the Netherlands, stating that "a global semiconductor supply chain alliance connecting the entire cycle from design to materials, parts, and equipment (SoBuJang), and manufacturing has been completed." It is analyzed that this significantly alleviated the biggest issue in the semiconductor industry, supply chain risks. During the Korea-Netherlands summit on the same day, President Yoon forecasted a 'super-gap,' and Prime Minister Mark Rutte emphasized it as a 'win-win.'

Park Chun-seop, the Chief Economic Secretary of the Presidential Office, held a briefing at the press center set up in Amsterdam in the afternoon, saying, "By formalizing the 'semiconductor alliance' between the two countries, we have established a government-to-government semiconductor cooperation channel and decided to strengthen cooperation on the supply chain of key items."

President Yoon Suk-yeol is talking with Peter Wennink, Chairman of ASML, after the Korea-Netherlands Business Forum held at the Krasnapolsky Hotel in Amsterdam on the 13th (local time). In the background, Samsung Electronics Chairman Lee Jae-yong is conversing with King Willem-Alexander of the Netherlands.
[Photo by Yonhap News]

Chief Secretary Park placed great significance on the completion of the semiconductor supply chain solidarity connecting the United States, Japan, the United Kingdom, and now the Netherlands. With the addition of highly competitive semiconductor allies, it is judged that there is now an enhanced ability to proactively respond to geopolitical and supply chain risks.

Attention is also drawn to the timing of the elevation of semiconductor cooperation between the two countries to an 'alliance.' Until now, Korea's semiconductor industry suffered performance setbacks due to the COVID-19 pandemic and the slowdown in China's economy, but recently, demand for servers centered on artificial intelligence (AI) has increased, attempting a rebound. On this day, Chief Secretary Park added, "It is time to firmly establish the rebound momentum that has been formed for the first time in a while," which is in the same context.

The Presidential Office plans to proactively respond to geopolitical risks and focus on the supply and procurement of advanced equipment based on the expected benefits of the alliance in ▲ technological competition ▲ talent cultivation ▲ supply chain stability. In particular, securing key equipment must precede to lead in the production of 2-nanometer (nm; nanometer = one-billionth of a meter) semiconductors, which will determine the success or failure of future semiconductor industry competition. The Netherlands, which owns ASML, the world's number one semiconductor equipment company, is an essential cooperation partner for Korea.

Chief Secretary Park analyzed, "ASML's next-generation extreme ultraviolet (EUV) equipment is essential for mass production of 2-nanometer-based semiconductors, and the annual production capacity is expected to be around 20 units." He added, "The stable acquisition of next-generation EUV equipment will be a key variable determining the outcome of the future competition in semiconductor miniaturization." He also emphasized, "Last year, when President Yoon and Prime Minister Rutte elevated Korea-Netherlands relations to a strategic partnership, it laid the foundation for upgrading semiconductor cooperation to a semiconductor alliance this time."

Earlier, President Yoon and Prime Minister Rutte signed a joint statement containing the 'semiconductor alliance' during the summit. President Yoon stated, "The goal of the Korea-Netherlands semiconductor alliance is to create the world's best super-gap," and Prime Minister Rutte emphasized, "It is a promising initiative and a true 'win-win.'" President Yoon explained the 'semiconductor alliance' as "meaning to maintain the semiconductor super-gap, jointly build cutting-edge technology, discuss and solve major scientific and technological issues together, and closely share information."

Regarding Korea-Netherlands relations, he evaluated, "It is the best relationship so far." President Yoon added, "The most crucial aspect is upgrading semiconductor cooperation to a semiconductor alliance. Going forward, based on advanced science and technology and semiconductors, the horizon of bilateral relations will broaden and deepen, encompassing security, economy, culture, and all other areas." Prime Minister Rutte also expressed his willingness to cooperate, stating, "I think we have reached an unprecedented cooperative relationship. It has never been this good." He added, "Not only in horticulture, agriculture, and traditional fields but also in cybersecurity, extensive defense cooperation, and semiconductors, which are very important parts."

This cooperative will is confirmed by the 32 documents and contracts concluded between the two countries. By signing institution, government-agency to company documents include 30 MOUs (Memoranda of Understanding), 1 LOI (Letter of Intent), and 1 contract; by subject, there are 11 MOUs, 1 LOI, and 1 contract between government agencies, and 19 MOUs between companies. Among these, a large number of semiconductor-related MOUs that will serve as the foundation for strengthening the Korea-Netherlands semiconductor alliance were included: ▲ Advanced Semiconductor Academy MOU ▲ Semiconductor Talent Exchange MOU ▲ Key Item Supply Chain Cooperation MOU ▲ Samsung Electronics-ASML Next-Generation Semiconductor Manufacturing Technology R&D Center Establishment MOU ▲ SK Hynix-ASML Joint Development of EUV Hydrogen Gas Recycling Technology MOU ▲ MOU between (Co.) Isol and ISTQ, totaling six MOUs.

This content was produced with the assistance of AI translation services.