Samsung Sold Stake in ASML for $2 Billion

Samsung Sold Stake in ASML for $2 Billion

Samsung raised $2.2 billion through the sale of more than half of its stake in Netherlands-based chip company ASML. Its stake in the company is now lowered to around 2.75 million shares.

The Korea Economic Daily cited filings showing Samsung had sold around 3.6 million shares between April and June, lowering its holdings from 1.6% to a 0.7% stake. The newspaper reported Samsung has earmarked the $2.2 billion raised to invest in chip production lines, in a bid to add capacity to its foundry business and rival bigger players in the segment including Taiwan Semiconductor Manufacturing Company.

Samsung detailed ambitious plans for its chip contract manufacturing business in late 2022, setting a goal of more than tripling the output of advanced chips by 2027. As part of this, it aims to mass produce chips using a 2nm process in 2025 and is also working on creating a second facility in the US state of Texas, adding to three foundries in South Korea.

The Dutch government last month moved to tighten restrictions on the export of some of the country’s most advanced chipmaking equipment, as part of a global clampdown on China. Several reports at the time indicated ASML would be hard hit by the move, but the company stated it expects no impact on its financial performance this year.