May 15, 2025 /SemiMedia/ — Samsung Electronics is considering outsourcing low-end photomask production to reallocate internal capacity toward advanced lithography used in next-generation memory chips.

The company is evaluating suppliers for i-line and KrF masks, including Tekscend Photomask, a unit of Japan’s Toppan Holdings, and PKL, part of U.S.-based Photronics. The review is expected to conclude in the third quarter.

Samsung has traditionally produced all photomasks in-house to guard against technology leakage. However, aging internal equipment and reduced technological risk are prompting a shift in strategy. Outsourcing less critical masks would free up resources for ArF and EUV masks required in cutting-edge manufacturing.

Photomasks, which transfer circuit patterns onto silicon wafers, are classified by light wavelength. Shorter wavelengths such as EUV (13.5nm) enable finer resolution, while i-line (365nm) and KrF (248nm) support mature process nodes.

South Korea’s photomask market is estimated at KRW 700 billion, with local fab utilization exceeding 90%. Rising demand from Chinese fabless firms has tightened supply. Industry sources warn that Samsung’s outsourcing could increase pressure on local foundries like DB Hitek seeking access to available photomasks.