Dutch chip-equipment maker ASML said on Wednesday that its key Korean customers, including Samsung and SK hynix, plan to add its latest machines from next year as they seek thinner memory technology.

"Korea is a crucial market for us as the country is home to Samsung Electronics and SK hynix, the world's top two memory chip suppliers. The Korean market will account for at least one-third of annual revenue out of our global business by 2020," ASML Korea CEO Kim Young-sun told reporters during a press conference in a Seoul hotel.

The executive admitted that ASML has been jointly developing core technologies to be used in next-generation semiconductor chips with Samsung and SK hynix.

"Senior executives from Samsung and SK hynix will hold a regular business meeting next month and working-level discussions on projects of mutual interest that are underway," said Kim.

ASML is a global leader in extreme ultraviolet or EUV tech, which helps shrink the size of chips while increasing their capacity and speed for hardware devices such as smartphones.

Samsung Electronics is migrating its chip-making technologies into thinner ones, this is better in terms of cost and productivity in the semiconductor industry.

Samsung is ahead of its biggest logic chip-making rival TSMC in the heated race to make processors function as a brain for an entire computing system. Samsung is pushing for chips using 14 nanometer technology, while TSMC is manufacturing processors using 16 nanometers.

"ASML plans to mass-produce EUV machines from 2016 and we are confident we will get new EUV orders," said the executive.

Some years back, Samsung bought a 3 percent equity holding in ASML for the development of next-generation photolithography technology.

Kim said the price for memory chips will remain strong throughout early 2016, given that only a few chip suppliers control the market.

Market analysts believe that Samsung, SK hynix and TSMC will upgrade more of their existing equipment, thus postponing purchase of ASML's most-advanced 14, 16, or even 20-nanometer EUV gear, as the price of one EUV device costs "millions of dollars.

Kim said ASML Korea is hiring more and has been active in participating in various state-funded business projects for the development of next-generation core chip-making technologies.

"We are teaming up with local universities and institutions in accordance with our commitment to being a good corporate citizen in Korea," he said.

By: DocMemory
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