November 15, 2011 - Samsung, the world's largest maker of memory chips, plans to import more ASML extreme ultraviolet (EUV) lithography equipment. Although specific details could not be disclosed due to confidentiality clauses in the contract, the agreement will allow ASML to provide a total of 50 units of equipment to Samsung over five years, while the unit price of each unit will be about 200 billion won (about Rs. 1,116 million), for a total value of up to 10 trillion won (about Rs. 55.8 billion), according to South Korean stock market sources.

It is not clear whether the products in the contract are existing EUV lithography equipment or next-generation "High NA EUV" lithography equipment. The biggest problem with the current EUV lithography equipment, however, is its limited production volume. According to officials, it is "more complex than a satellite component" and can only be produced in very limited quantities each year. Last year was said to be 40 units, this year ASML estimates that it is 60 units. The current need and can buy EUV lithography equipment manufacturers are five: Samsung Electronics, TSMC, Intel, SK Hynix and Micron. Of these, TSMC accounts for about 70 percent of the supply, with the remaining four companies vying for the remaining 30 percent.

Samsung Electronics, which launched the world's first 3nm foundry technology using gate-all-around (GAA) technology in June last year, has been working to secure the procurement of more EUV lithography equipment, with the goal of moving into a second-generation 3nm process in the first half of next year, a 2nm process in 2025, and a 1.4nm process in 2027.

In addition, according to the quarterly report released by Samsung Electronics, Samsung sold some of its shares in ASML, holding ASML stock from the end of June 2,750,072 shares (0.7% stake) to the end of September 1,580,407 shares (0.4% stake). As for the value of the stake, it fell from 2.61 trillion won (about 14.5 billion yuan) to 1.2562 trillion won (about 6.997 billion yuan), with the amount of ASML shares sold by Samsung estimated at 1.3 trillion won.

Previously, Samsung Electronics gained about 3 trillion won (about CNY16.7 billion) by selling 3,547,715 shares of ASML stock in the second quarter. This year alone, Samsung raised 4.3 trillion won (about 24 billion yuan) through the sale of ASML.

Samsung Electronics' share sale was explained as a way to raise funds for investment in advanced semiconductors, among other things. Samsung Electronics announced through its third-quarter earnings release that it plans to expand its high-bandwidth memory (HBM) production capacity by 2.5 times next year. To do so, Samsung Electronics plans to expand and upgrade its Cheonan plant in South Korea centered on the HBM production line.

Samsung Electronics invested 36.7 trillion won (about CNY204.4 billion) in the first three quarters of this year for facility investment, of which, 33.4 trillion won (about CNY186 billion) was spent on semiconductor factory construction, expansion and improvement, etc. According to Samsung Electronics, the full-year facility investment is expected to reach about 53.7 trillion won (about RMB 299.1 billion), which is the largest annual facility investment scale. By business, the semiconductor division is expected to invest 47.5 trillion won (about CNY264.6 billion), and the display division will invest 3.1 trillion won (about CNY17.267 billion).

In addition, Samsung's semiconductor business has suffered consecutive losses, making it the company's most serious business unit in terms of losses for the year. In the first three quarters, Samsung Electronics' Device Solutions (DS) business, which handles semiconductors, accumulated a loss of 12.96 trillion won, or about 71.452 billion yuan.