South Korea’s Drive Towards EUV Mask Self-Sufficiency: A Look at Upcoming Developments
Summary:
- South Korea aims to reduce dependency on Japanese EUV mask technology.
- Key collaborations and developments signal progress in domestic EUV mask production.
- The market for EUV materials is limited, but domestic demand is rising significantly.
South Korea is making notable advancements in the production of Extreme Ultraviolet (EUV) masks, crucial components in advanced semiconductor manufacturing. Recent reports indicate that while Japan maintains a leadership position in EUV lithography technology, South Korean companies—particularly Samsung and SK Hynix—are actively working to bolster their domestic capabilities.
Japanese Dependence in EUV Technology
Currently, Samsung relies almost entirely on imports from Japan for critical EUV masks, predominantly sourced from companies like Hoya and AGC. These firms, known for their optical and glass products, are significant global players in the EUV mask market. However, Japan’s 2019 imposition of export controls on essential semiconductor materials to South Korea triggered a robust initiative within the South Korean industry to develop homegrown alternatives.
In response to these restrictions, South Korean firms have accelerated their efforts to innovate in semiconductor technologies. Notably, ongoing collaborations between Samsung and S&S Technology have culminated in significant breakthroughs in EUV mask production. The partnership is reportedly nearing the final stages of verification, with an expected supply rollout in the second quarter.
Gradual Transition to Domestic Production
Given the complexities and high costs associated with EUV lithography machines and processes, a complete transition to domestic EUV masks won’t occur overnight. Samsung plans to initially incorporate Korean-made masks in smaller quantities before scaling up their use in future manufacturing cycles. Other major South Korean firms, such as SK Hynix, are also poised to follow suit, increasing their reliance on locally produced EUV masks and related technologies.
Despite these strides, the challenge of fully replacing Japanese EUV materials remains formidable. Although South Korea aimed to replace Japanese EUV photoresist materials six years ago, Japanese companies continue to dominate this niche, with few South Korean manufacturers capable of producing comparable products. The obstacles stem not only from the technical difficulties associated with EUV-related R&D but also from the market dynamics—specifically, the relatively modest annual market size for EUV photomasks, estimated at $300 million. Samsung’s share is around one-third of this market, translating to an estimated $100 million, which raises questions about the sustainability of R&D investments.
Rising Domestic Demand
The landscape looks different when analyzing domestic market needs. South Korea’s demand for EUV and DUV-related materials has escalated, outpacing local supply and enhancing the urgency for domestic substitution. This backdrop presents an opportunity for innovation and investment in semiconductor technology, as local firms look to fulfill the surging requirements for advanced manufacturing capabilities.
In summary, South Korea’s semiconductor industry is at a pivotal moment, striving to cultivate self-sufficiency in EUV mask production. With ongoing collaborations, milestones in technology development, and growing domestic demand, the future landscape of semiconductor manufacturing in South Korea appears promising, even as challenges persist in matching the sophistication of Japanese technology.
By further developing their capabilities in EUV technology, South Korea aims not only to increase national competitiveness but also to reduce reliance on imports, paving the way for a more resilient semiconductor supply chain. As advancements continue, South Korea’s vision for a self-sufficient semiconductor industry will be closely watched by global markets and competitors alike.
