Samsung Electronics Co. and ASML Holding N.V. have reached a preliminary agreement to build a research and development facility in South Korea with a joint investment of 1 trillion won ($760 million).

Under the memorandum of understanding (MOU) signed at ASML’s headquarters in Veldhoven earlier in the day, the two companies will team up to develop advanced memory chips based on ASML’s latest extreme ultraviolet (EUV) equipment.

ASML is the only EUV scanner maker in the world. The equipment is crucial to draw the most elaborate and detailed patterns on semiconductor wafers, while simplifying the manufacturing process and improving production yields.

When completed, the R&D center will mark ASML's first overseas research facility jointly established with a semiconductor company.

SK Hynix signed an MOU with ASML to jointly develop technology to recycle hydrogen gas used to manufacture EUV machines.

Hydrogen gas recycling is estimated to reduce power consumption per EUV unit by 20% and cut the relevant costs by 16.5 billion won a year.