(Bloomberg) -- Samsung Electronics Co. cut its stake in ASML Holding NV by more than half in the second quarter, as the world's largest memory maker beefs up its chipmaking business.
The South Korean company sold around 3.55 million shares from April to June, according to its first-half report filed earlier this week. That lowered Samsung's holding in the Dutch chip gear maker to 0.7%, or 2.75 million shares, from 1.6% at the end of the first quarter.
Spokespeople for Samsung and ASML declined to comment further.
The sale raised about $2.2 billion, according to Korea Economic Daily. Samsung is expected to use the proceeds for investment in chip production lines, the paper reported, citing industry sources.
Samsung's chip foundry business is adding production capacity and more advanced manufacturing techniques to take on the market leader Taiwan Semiconductor Manufacturing Co., which is ASML's biggest customer.
In June, Samsung said it will introduce so-called 2-nanometer production for mobile phone parts by 2025 and expand applications. The company will also significantly increase output in Pyeongtaek, South Korea, and Taylor, Texas, to shore up the foundry division, which makes chips for customers on a contract basis.
ASML is Europe's most valuable tech firm and the world's only maker of machines needed to produce the most advanced chips crucial to everything from cars and smartphones to computers and airplanes.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.