ASM SET TO INVEST AROUND $100M IN KOREAN R&D, MANUFACTURING OPERATION, SIGNS MoU WITH TRADE, ENERGY & INDUSTRY MINISTRY

Rhea-AI Summary

ASM International announced a significant investment of approximately US$100 million to expand its manufacturing and innovation center in Dongtan, South Korea, by 2025. This initiative follows a Memorandum of Understanding with South Korea's Ministry of Trade, Industry, and Energy. The expansion aims to enhance R&D infrastructure and manufacturing capacity, supporting advances in semiconductor technology. CEO Benjamin Loh emphasized the ongoing demand growth in semiconductors despite current industry slowdowns. Furthermore, the investment is expected to create new job opportunities and foster local partnerships, reinforcing Korea's semiconductor supply chain.

Positive

• Investment of US$100 million in R&D and manufacturing will enhance ASM's capabilities.
• Expansion expected to create new job opportunities in engineering and manufacturing.
• Strengthens ASM's competitive position in the growing semiconductor market.

Negative

• Investment is conditional upon governmental support and permits, introducing potential delays.

Almere, The Netherlands – Seoul, South Korea

February 2, 2023, 3:00 a.m. CET

ASM intends to significantly expand its manufacturing and innovation center in Dongtan, South Korea, through a multi-year investment totaling around US$100 million by 2025.

ASM International N.V. (Euronext Amsterdam: ASM) today announced its intention to invest around US$100 million in its manufacturing and innovation center in Dongtan, South Korea, by 2025, following the signing of a Memorandum of Understanding between ASM and the Ministry of Trade, Industry and Energy of the Republic of Korea (‘MOTIE’).

This investment will expand ASM’s R&D and product-development infrastructure to meet the needs of technology advances, as well as adding more manufacturing capacity. Korea is a key site for ASM, where some of its most advanced applications are developed – ASM’s ALD gap-fill applications are a recent and successful example. These applications enable next-generation advanced logic and memory devices, which are expected to see increased usage in coming years.

“Rapid growth is expected until the end of the decade for semiconductors, and – despite the recent slowing down in the industry – ASM continues to invest for growth,” says Benjamin Loh, CEO of ASM. “This expansion will not only serve our key Korean customers, but all our customers worldwide will benefit from the enabling technologies we develop in Korea.”

Lee Chang-yang, Korea's Minister of Trade, Industry and Energy, says: “The intended investment by ASM is expected to contribute greatly to increasing high-tech development in our country, securing a stable semiconductor supply chain, and increasing exports.”

Prior to signing the MoU, Minister Lee said that with semiconductor devices getting smaller and smaller, the increased investment in Korea by ASM – with its world-leading ALD technology – would present good cause for the country to ‘exert synergy’ with domestic semiconductor companies. Minister Lee also expressed his willingness to cooperate closely with ASM as part of the Korean government’s policy to foster and support the semiconductor industry.

Dongtan has been instrumental in ASM’s growth, with the facility delivering advanced R&D and technology for customers in Korea and for global customers. Korea is also the global center for ASM’s PEALD business. Technologies developed by ASM’s local R&D team have been at the heart of breakthrough innovations in the semiconductor industry, such as the ALD quad chamber module (QCM) architecture, the TENZA^TM ALD for ultra-high aspect ratio (>100:1) gap-fill, and high-quality PEALD oxides and nitrides for spacers, liners, and other patterning applications.

The expansion of ASM’s Dongtan facility is also required to create more space for the company’s fast-growing number of employees in Korea, and reflects the increasing revenue contribution from the Korean market expected over the next few years.
  

The intended investment will deliver multiple benefits to the local market. Of course, the expansion will create new job opportunities, for the direct and indirect employment of skilled personnel in engineering, R&D and manufacturing. In addition to contributing to training and workforce development in Korea, the investment will also benefit local supplier partnerships.

ASM has been operating in Korea since 1989 and established ASM Korea Limited in 1995. Since then, Korea has grown into one of ASM’s key global technology development and manufacturing sites with more than 450 employees.

The MoU has been signed but is conditional on support and assistance from the Korean government, in terms of grants and the speedy approval of all necessary permits.

This intended expansion follows the unveiling last year of ASM’s state-of-the-art Singapore manufacturing facility and operations hub, another step in the company’s growth as it prepares to meet growing global customer demand for advanced semiconductors.
                     
About ASM International

ASM International N.V., headquartered in Almere, the Netherlands, and its subsidiaries design and manufacture equipment and process solutions to produce semiconductor devices for wafer processing, and have facilities in the United States, Europe, and Asia. ASM International's common stock trades on the Euronext Amsterdam Stock Exchange (symbol ASM). For more information, visit ASM's website at www.asm.com

Cautionary Note Regarding Forward-Looking Statements: All matters discussed in this press release, except for any historical data, are forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These include, but are not limited to, economic conditions and trends in the semiconductor industry generally and the timing of the industry cycles specifically, currency fluctuations, corporate transactions, financing and liquidity matters, the success of restructurings, the timing of significant orders, market acceptance of new products, competitive factors, litigation involving intellectual property, shareholders or other issues, commercial and economic disruption due to natural disasters, terrorist activity, armed conflict or political instability, changes in import/export regulations, epidemics and other risks indicated in the Company's reports and financial statements. The Company assumes no obligation nor intends to update or revise any forward-looking statements to reflect future developments or circumstances.

This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

CONTACT

Investor and media contact:
Victor Bareño
T: +31 88 100 8500
E: investor.relations@asm.com

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• 20230202 ASM SET TO INVEST AROUND $100M IN KOREAN R&D, MANUFACTURING OPERATION, SIGNS MoU

FAQ

What is ASM International's investment plan for South Korea?

ASM International plans to invest approximately US$100 million in its Dongtan facility by 2025.

When was the Memorandum of Understanding for ASM's investment signed?

The Memorandum of Understanding was signed on February 2, 2023.

What are the expected outcomes of ASM's investment in its Dongtan facility?

The investment aims to enhance R&D, increase manufacturing capacity, and create job opportunities.

How will the investment benefit the local economy in Korea?

The investment will create jobs, enhance workforce development, and strengthen local supplier partnerships.

What risks are associated with ASM's investment in South Korea?

The investment is conditional on government support and timely approval of permits, which may introduce uncertainty.