By Diplomacy Journal Lee Kap-soo
Gyeonggi-do Governor Kim Dong-yeon's 'semiconductor diplomacy' in the Netherlands has resulted in a 3 trillion won investment from ASM, a global semiconductor company.
ASM will invest 3 trillion won in Gyeonggi-do by 2030, cooperating with local companies in purchasing components and providing job opportunities for university students in the province.
Governor Kim Dong-yeon signed the 'Gyeonggi-do, Hwaseong City, and ASM MOU' at the ASM headquarters in Almere, the Netherlands, on Oct. 31.
Governor Kim and Hwaseong City Mayor Jung Myung-geun were joined by ASM CEO Hichem M'Saad and CFO Paul Verhagen.
ASM is the world's No. 1 producer of “deposition” equipment, a key semiconductor process. What ASM is buying from the Korean company are parts needed to make the world's No. 1 deposition equipment.
According to data submitted to the Gyeonggi-do Metropolitan Assembly, ASM will invest 1.5 trillion won by 2027 and another 1.5 trillion won by 2030.
The agreement also includes a commitment to foster semiconductor professionals in the province. ASM will provide employment opportunities for Gyeonggi-do residents and graduates of Gyeonggi-do universities, and conduct internship programs with Gyeonggi-do universities.
Governor Kim Dong-yeon said, “Thank you for your attention to semiconductor workforce development and youth education programs. As governor, I am grateful for the MOU. I look forward to your continued efforts.”
“We are also grateful for ASM's 30-year partnership. Gyeonggi-do and Hwaseong City have been working to provide as much support as possible for ASM's investment and business. As the center of all economic and industrial activity in Korea, Gyeonggi Province will continue to support ASM's business in Gyeonggi Province.”
CEO Hichem M’Saad added: “Today is a special day for ASM as we mark a significant milestone in our business in Korea. I believe that today's agreement will play an important role in our future partnership. ASM will play an important role in the Korean semiconductor industry.”
“ASM has been at the forefront of research and innovation, and our technologies and equipment are playing a key role in connecting technologies for the digital world, such as AI, 5G and cloud computing,” said CEO Hichem M’Saad. ”ASM's advanced technology is ideally suited to strengthen the Korean semiconductor ecosystem. It will revitalize the semiconductor ecosystem in Gyeonggi Province and contribute to the province becoming a semiconductor center.”
Hwaseong City Mayor Jung Myung-geun said, “ASM's 2nd Innovative Manufacturing Center is being built in Dongtan. We will actively cooperate to ensure its timely completion in the first half of next year.”
”Hwaseong has 3,000 semiconductor companies and 81,000 people working in semiconductor-related jobs. We hope that these companies and ASM will cooperate win-win and develop together.”
The MOU is significant in that it marks ASM's achievement of a “large-scale project” following a promise to expand investment cooperation from ASM, the world's No. 1 lithography equipment company, the day before. This is the result of Gov. Kim, who campaigned as a “money-making governor,” and has been working hard to attract investment through “semiconductor diplomacy.”
The province and ASM have been cooperating since a 2015 investment agreement, and investment discussions have surged since Kim took office.
The ASM Research and Manufacturing Facility, which ASM is currently building in Dongtan Advanced Industrial Complex in Hwaseong City, is a combined research and manufacturing facility that has been built in only two of ASM's global offices worldwide, including Korea. The investment comes just months after Gov. Kim met with representatives of ASM's headquarters and Korean subsidiary to encourage investment.
In March, Kim met with Hichem M’Saad at the provincial capital to discuss cooperation in the semiconductor sector, and in 2022, he held investment discussions with Paul Verhagen, the company's chief financial officer.
