Dutch semiconductor equipment supplier ASM has agreed with the Korean industry ministry to invest $100 million in Korea to build a production factory and a research and development center. The company is considering building a second factory to produce equipment for atomic layer deposition (ALD), a key process in chip manufacturing, and expanding its R&D center in Korea.
ASM is headquartered in Hwaseong, Gyeonggi Province, South Korea. The company announced its plan to invest $100 million in Korea in October 2022, but the amount has increased “as discussions between the two sides have developed,” according to a ministry official.
Korean Industry Minister Lee Chang-yang and ASM CEO Benjamin Loh met after the signing of the MOU to discuss the planned expansion of bilateral cooperation.
The ministry said in a release that the investment is expected to help Korea better ensure stable supply chains of the sector and boost exports. The government will actively extend support, such as providing incentives and resolving difficulties.
Implications of the Investment
The investment by ASM is a significant development for the Korean semiconductor industry. ALD is a critical process in the manufacturing of advanced chips, and ASM is a leading supplier of ALD equipment. The company’s investment in Korea will help to strengthen the country’s semiconductor supply chain and boost its competitiveness in the global chip market.
The investment is also a sign of confidence in the Korean economy. ASM is a major multinational corporation, and its decision to invest $100 million in Korea is a vote of confidence in the country’s economic prospects.
Overall, the investment by ASM is a positive development for the Korean economy and its semiconductor industry. The investment will help to strengthen Korea’s semiconductor supply chain, boost its exports, and create jobs.
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