ASM to build atomic layer deposition machine factory in Korea

Industry Minister Lee Chang-yang, left, and ASM CEO Benjamin Loh shake hands at a ceremony marking the signing of an MOU on Thursday in central Seoul. [YONHAP]

ASM International, an Almere, Netherlands-based supplier of semiconductor deposition machines, will invest $100 million in Korea by 2025 to establish a new manufacturing facility, the Industry Ministry said, based on a memorandum of understanding (MOU) between the supplier and the ministry signed Thursday.

The facility will be responsible for manufacturing atomic layer deposition machines, a key piece of equipment for the production of semiconductors. Details about the location were not provided.

The funding will be also used to expand the scale of its existing research center in Hwaseong, Gyeonggi, where it runs a plant. ASM Korea is headquartered in the city of Hwaseong, some 40 kilometers (24.8 miles) south of Seoul.

The investment discussion made progress last October when International Trade and Investment Deputy Minister Moon Dong-min visited the Netherlands to meet with executives of ASM.

Following the MOU signing ceremony, Industry Minister Lee Chang-yang and ASM CEO Benjamin Loh held a meeting to discuss the envisioned expansion of bilateral cooperation.

"The investment is expected to help Korea better ensure stable supply chains of the sector and boost exports," the ministry said in a release. "The government will actively extend support, such as providing incentives and resolving difficulties."

ASM, which specializes in the production of atomic layers for wafers, jointly created ASML, the world’s largest lithography machine maker, in 1984.

BY PARK EUN-JEE, YONHAP [park.eunjee@joongang.co.kr]