Samsung's Bold Move: Divests Over Half Its ASML Shares To Champion Chip Production: Report

Samsung Electronics Co SSNLF has trimmed its investment in ASML Holding NV ASML by over 50% during the second quarter. This move is part of the tech giant's strategy to bolster its semiconductor manufacturing division.

The sale, which took place between April and June, saw Samsung offloading nearly 3.55 million shares, Bloomberg reports. 

Consequently, Samsung pared its stake in the Dutch semiconductor equipment manufacturer from 1.6% to 0.7%, equivalent to 2.75 million shares.

Reportedly, this divestiture fetched Samsung a sum of approximately $2.2 billion. Industry insiders speculate that the company might channel these funds into expanding its chip manufacturing facilities.

Samsung's chip foundry segment is ramping up its production capabilities and cutting-edge manufacturing processes to take on the likes of Taiwan Semiconductor Manufacturing Co TSM. Interestingly, TSMC stands as ASML's prime client.

Earlier in June, Samsung revealed plans to roll out 2-nm technology for mobile components by 2025, broadening its scope. 

In addition, the conglomerate is planning substantial production hikes in locations like Pyeongtaek, South Korea, and Taylor, Texas. 

The moves reflect its efforts to strengthen the foundry department responsible for custom chip fabrication. Samsung is also keen on diversifying its base in India.

Playing a pivotal role in the tech landscape, ASML is Europe's top tech enterprise and the sole global machinery provider vital for crafting the most sophisticated chips. 

These semiconductors are indispensable for various products, from automobiles and smartphones to PCs and aircraft.

Price Action: ASML shares traded higher by 0.66% at $656.00 on the last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.