Global crisis due to COVID-19 has forced numerous manufacturing companies to halt production and Netherlands-based ASML, the only producer of extreme ultraviolet (EUV) exposure equipment is no different. This has affected Samsung Electronics that use the EUV hardware to mass-produce semiconductor chips used in current-day mobile devices. The South Korean giant had plans to produce 5nm semiconductors in 2020 but it is going to be delayed in the light of current situation. Likewise, Taiwan-based TSMC who is another major client for ASML will also be affected. They have postponed the production of 3nm semiconductors from June to October 2020.
As compared to Samsung, TSMC has the upper hand when it comes to the acquisition of EUV equipment for foundry business. While Samsung still has to come up with a detailed schedule for mass production of 5nm products, TSMC has already prepared the roadmap for 5nm semiconductors for clients like Apple, Qualcomm, Huawei, and AMD in Q2 2020, given the current situation stabilizes.
Samsung wants to take the lead in the system semiconductor market by 2030, but the gap with competitor TSMC is widening and with COVID-19 lockdowns in place, the situation is not getting any better for the former. Kim Ki-Nam, vice chairman of Samsung Electronics, in the general shareholders’ meeting in March said, “There is a gap between Samsung Electronics and TSMC in the foundry business, but we will develop our foundry business by securing leadership in new processes. Yet the company cannot take leadership in new processes if its introduction of EUV equipment is delayed.”
In another instance, Samsung’s display production lines in northern Vietnam have been affected as authorities have ordered personnel working at the factory to be quarantined. This came after a 25-year-old worker at the Samsung Display factory in Bac Ninh province tested positive. According to Nguyen Huong Giang, chair of the People’s Committee of Bac Ninh province, 44 people at the factory are currently quarantined and the unit premises and transport buses for workers have been disinfected.
