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Industry Ministry on its path to make the Korean equivalent of ASML

Published: 20 Aug. 2024, 16:32

JIN EUN-SOO
[email protected]

Korea's Industry Minister Ahn Duk-geun speaks during a conference about "super eul" supportive measures at Eo Technics' headquarters in Anyang, Gyeonggi, on Tuesday. [MINISTRY OF TRADE, INDUSTRY AND ENERGY]

Korea has launched a measure to foster a Korean equivalent of ASML under a program dubbed "super eul."

"Super eul" companies — which maintain a solid position in the global supply chain despite shake-ups due to geopolitical tension — hold more negotiating power than the purchasers, bucking the norm of client firms dictating the terms.

The Netherlands' ASML, which produces chip manufacturing equipment, is a representative case of "super eul" since its lithography machines that are quintessential to making advanced chips are coveted by chipmakers around the world due to scarcity and exclusivity.

Such a program was conceived as Korea is considered to be fundamentally weak in material, component and equipment in key industries such as semiconductors and displays, which inevitably leaves the country vulnerable to geopolitical conflicts.

Under the project, Korea's Ministry of Trade, Industry and Energy will roll out a seven-year support program for select companies' research and development. From the fledgling stage of the technology to its maturity, the ministry will work to develop technology that will play a vital role in the global supply chain.

Recipients of the support will be evaluated and selected by a committee comprising of industry experts. During the evaluation process, applicant companies will have to compete with each other as well.

The program will also help expedite the approval and standardization process of the selected technology to bring forth its commercialization under what's called a super pass system. In partnership with the Korea Trade-Investment Promotion Agency and other related organizations, the program will also help take the potential technology overseas.

Financial aid will be distributed under the "super eul development fund" that will form next year, with tax incentives for what's considered core technology.

"In the DNA of 'super eul' companies lies the spirit of relentless challenge, open innovation and endless investment," said Industry Minister Ahn Duk-geun.

"The ministry will spare no effort in supporting Korea's material, component and equipment companies so that they can grow into core suppliers in global supply chains."

The Industry Ministry held a conference on the matter on Tuesday at the headquarters of Eo Technics, a domestic laser equipment supplier for chip and display makers.

BY JIN EUN-SOO [[email protected]]