Samsung promotes localization of semiconductor materials such as ArF masks and EUV films to reduce dependence on Japan
Mar 04,2025
Samsung Electronics is promoting the localization of key semiconductor materials, which has attracted widespread attention as the company attempts to reduce its heavy reliance on imports from Japan. Against the background of increasingly fierce competition for global semiconductor dominance in the United States, Japan, Chinese Mainland and Taiwan, China, China, this strategic shift is seen as an initiative to deal with the potential tension between South Korea and Japan.
According to industry insiders, Samsung Electronics' semiconductor division is accelerating efforts to replace "ArF (argon fluoride) blank masks" with domestically produced Korean alternatives. These masks are crucial in semiconductor lithography processes, accounting for over 40% of the entire stage. Currently, Samsung heavily relies on Hoya from Japan for the procurement of these masks. However, Samsung is currently working closely with South Korean manufacturer S&S Tech to achieve localization. An industry insider revealed, "Samsung has been receiving a small amount of domestically produced ArF blank masks, but has recently begun evaluating their full adoption in specific processes
In addition to ArF blank masks, Samsung is also increasing efforts to localize other materials that are highly dependent on Japan. Samsung is collaborating with South Korean FST to achieve localization of EUV films currently led by Mitsui Chemicals in Japan. In addition, Samsung is collaborating with LG Chem on non-conductive film (NCF), a key material for high bandwidth memory (HBM). Currently, 100% of NCF materials are supplied to Samsung by Resonac from Japan.
The diversification of Samsung's material supply chain is mainly in response to the surge in semiconductor demand caused by the artificial intelligence (AI) revolution. This demand requires diversification of the process materials currently monopolized by one or two companies. The strategy also takes into account the increasingly fierce semiconductor dominance competition with the United States and Japan, as well as Chinese Mainland and Taiwan, China.
Japan is cultivating new chip manufacturing companies such as Rapidus to enhance the domestic semiconductor industry. If Japan implements export restrictions on semiconductor materials similar to those in 2019 again, South Korea's domestic semiconductor production lines may face serious disruptions. A senior industry official commented, "In the context of recent changes in domestic and international political situations, the volatility of relations between South Korea and the United States, South Korea and Japan, and South Korea and China is higher than ever before. Samsung's efforts to strengthen risk management from multiple perspectives are of great significance
According to industry insiders, Samsung Electronics' semiconductor division is accelerating efforts to replace "ArF (argon fluoride) blank masks" with domestically produced Korean alternatives. These masks are crucial in semiconductor lithography processes, accounting for over 40% of the entire stage. Currently, Samsung heavily relies on Hoya from Japan for the procurement of these masks. However, Samsung is currently working closely with South Korean manufacturer S&S Tech to achieve localization. An industry insider revealed, "Samsung has been receiving a small amount of domestically produced ArF blank masks, but has recently begun evaluating their full adoption in specific processes
In addition to ArF blank masks, Samsung is also increasing efforts to localize other materials that are highly dependent on Japan. Samsung is collaborating with South Korean FST to achieve localization of EUV films currently led by Mitsui Chemicals in Japan. In addition, Samsung is collaborating with LG Chem on non-conductive film (NCF), a key material for high bandwidth memory (HBM). Currently, 100% of NCF materials are supplied to Samsung by Resonac from Japan.
The diversification of Samsung's material supply chain is mainly in response to the surge in semiconductor demand caused by the artificial intelligence (AI) revolution. This demand requires diversification of the process materials currently monopolized by one or two companies. The strategy also takes into account the increasingly fierce semiconductor dominance competition with the United States and Japan, as well as Chinese Mainland and Taiwan, China.
Japan is cultivating new chip manufacturing companies such as Rapidus to enhance the domestic semiconductor industry. If Japan implements export restrictions on semiconductor materials similar to those in 2019 again, South Korea's domestic semiconductor production lines may face serious disruptions. A senior industry official commented, "In the context of recent changes in domestic and international political situations, the volatility of relations between South Korea and the United States, South Korea and Japan, and South Korea and China is higher than ever before. Samsung's efforts to strengthen risk management from multiple perspectives are of great significance