Dutch chip equipment manufacturer ASML and tech giant Samsung Electronics have committed a substantial $760 million investment to establish an advanced semiconductor manufacturing plant in South Korea. The announcement unfolded during South Korean President Yoon Sook-Yeol’s four-day diplomatic visit to the Netherlands, signaling a pivotal move toward fostering a robust “semiconductor alliance” between the two nations, as reported by CNBC.

ASML, renowned as the sole global producer of ultraviolet lithography machines essential for crafting state-of-the-art chips, plays a crucial role in the chip-making landscape. These cutting-edge chips, synonymous with the latest Apple iPhones crafted by Taiwan’s TSMC, exemplify the technological forefront.

Samsung, a behemoth in the tech realm, holds the distinguished title of the world’s largest producer of dynamic random-access memory (DRAM) chips, omnipresent in consumer devices like smartphones and computers. South Korean chip manufacturers rely on ASML’s cutting-edge machines to churn out faster and more efficient chips, providing a competitive edge in the global semiconductor arena.

President Yoon, accompanied by King Willem-Alexander of the Netherlands, visited ASML’s headquarters, delving into the intricacies of ultraviolet lithography and touring a production site dedicated to next-generation electric vehicles. Yoon emphasized that this collaborative endeavor aims to establish a meticulously organized institutional framework, intensifying efforts within the global semiconductor supply chains. This move is strategically positioned against the backdrop of semiconductors evolving into strategic assets, coupled with the escalating geopolitical risks entwined with global supply chains.