Samsung sells part of ASML stake, Cash out nearly 3 trillion won to expand chip investment

Media outlets report that according to Samsung’s business summary released yesterday, the company sold approximately 3.55 million shares of the Dutch chip equipment manufacturer ASML in the second quarter of this year at a price of around 3 trillion Korean won, reducing its shareholding from 1.6% in the first quarter to 0.7%.

ASML stands as the world’s sole manufacturer of Extreme Ultraviolet (EUV) lithography machines. In 2012, Samsung, seeking to establish a strategic partnership with ASML, procured 3% of its shares for 363 billion Korean won. However, by 2016, Samsung divested approximately 1.4% of its ASML shares, valued at 750 billion Korean won.

A significant downturn in Samsung’s performance this year might have been a compelling factor in its decision to liquidate ASML shares. Samsung’s consolidated operating profit for the second quarter stood at 670 billion Korean won, marking its poorest performance in 14 years. Revenues plummeted by 22.3% year-on-year, dropping to 60 trillion Korean won, and their chip division reported an operating loss of 4.36 trillion Korean won for the same period. Despite the current semiconductor market downturn, Samsung remains resolute in its commitment to chip investment. In the first half of the year, Samsung’s capital expenditure surged to 25.2 trillion Korean won, a 24% increase from the 20.2 trillion Korean won during the same period last year, with 90% dedicated to the expansion and advancement of their chip business.

Even amidst global economic deceleration, Samsung persists in bolstering its investments to fortify its future competitiveness. This share divestiture is perceived as Samsung’s maneuver to amass funds for chip investment. Insiders speculate that Samsung intends to allocate these 3 trillion Korean won towards augmenting its chip production facilities both domestically and internationally.