Leading global semiconductor equipment companies are seizing the opportunity to construct manufacturing plants and research and development (R&D) facilities in South Korea. These strategic moves aim to mitigate the risks associated with operating in China while bolstering partnerships with Samsung Electronics and SK hynix, according to industry officials. With Samsung Electronics and SK hynix establishing large-scale semiconductor fabs in their respective countries, the Korean market is becoming increasingly attractive to component suppliers. The surge in investments by prominent players such as ASM, Applied Materials (AMAT), KLA, Lam Research, ASML, and Japanese equipment companies signifies a significant shift in the global semiconductor landscape.
ASM Expands Manufacturing Research and Innovation Center
ASM, a Dutch semiconductor equipment company, held a groundbreaking ceremony for its second Manufacturing Research and Innovation Center located in Dongtan, Gyeonggi Province. Renowned as a world leader in atomic layer deposition (ALD) equipment used in advanced semiconductor manufacturing, ASM recognizes Korea as a crucial hub for research and production of plasma-enhanced atomic layer deposition (PEALD). The company emphasized the prominence of Korea’s semiconductor industry and the increasing demand for PEALD during a press conference held in Korea on May 23. ASM’s expansion plans include investing in production capacity and maintaining close collaboration with Samsung Electronics and SK hynix.
U.S. Companies Target Dongtan and Yongin for Domestic Investments
Notably, U.S.-based companies such as Applied Materials (AMAT), KLA, Lam Research, and Dutch company ASML are directing their attention towards domestic investments focused on Dongtan and Yongin in Gyeonggi Province. Together, these companies hold over 60 percent of the global market share in semiconductor equipment. The decision to expand domestic investments is not only driven by the growth potential and investment value of the Korean semiconductor industry but also by a desire to alleviate the burden associated with conducting business and investments in China. The U.S. government’s regulations banning the export of equipment necessary for advanced semiconductor manufacturing to China, announced in October of the previous year, further motivate these companies to diversify their operations.
AMAT Leads with Memory Equipment R&D Center
AMAT, recognized as the global leader in front-end equipment, has commenced the construction of a Memory Equipment R&D Center in Gyeonggi Province. This strategic move underscores AMAT’s commitment to expanding its presence in the Korean market. Likewise, Lam Research, the world’s top manufacturer of semiconductor etching equipment, opened an R&D facility in Goksan Industrial Complex in Yongin in April of the previous year. The company further established a third factory in Hwaseong in 2021, solidifying its foothold in Korea. Additionally, U.S.-based KLA is actively expanding its R&D capabilities and organizational presence in Korea, further reinforcing the growing trend of foreign investments in the country.
Japanese Equipment Companies Increase Investments in Korea
Japanese equipment companies are also seizing the opportunities presented by the Korean semiconductor industry. Tokyo Electron (TEL), the world leader in track equipment essential for lithography processes, invested 200 billion won ($150.8 million) last year to expand its existing R&D facilities in Korea. Moreover, Kokusai Electric, specializing in semiconductor thermal processing equipment, and Hitachi High-Tech, renowned for manufacturing etching and metrology equipment, have unveiled plans to expand their Korean factories and R&D facilities. The active involvement of Japanese companies in Korea’s semiconductor industry further emphasizes the country’s position as a global hub for cutting-edge technology and innovation.
ASML Makes Significant Investments in Korea
ASML, a dominant force in the production of Extreme Ultraviolet (EUV) lithography equipment, is heavily investing in Korea. The company is allocating 240 billion won to establish a new campus spanning 16,000 square meters in Dongtan. The planned campus will feature a re-manufacturing center for EUV-related components and a training center, with completion targeted for December of the following year. ASML has also recently opened a global training center equipped with a EUV live module in the Surplus Global Semiconductor Equipment Cluster in Yongin. During a visit to Korea in November of the previous year, ASML announced the investment plan for the new campus, emphasizing the strengthening collaboration with Samsung Electronics, SK hynix, and others. The company is open to the possibility of further expansion of investments in the future.
Contributing to Domestic Semiconductor Industry Growth
The domestic investments by these global semiconductor equipment companies are expected to have a positive impact on the growth of Korea’s semiconductor industry. The enhanced research and production capabilities, job creation, cooperative growth with partner companies, and regional development will drive the industry forward. By capitalizing on Korea’s advanced manufacturing processes and close collaborations with key players like Samsung Electronics and SK hynix, these companies are positioning themselves at the forefront of the rapidly evolving semiconductor market.
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