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Intel buys stake in ASML

Posted: 11 Jul 2012     Print Version  Bookmark and Share

Keywords:450-mm  EUV lithography  wafer manufacturing  R&D funding 

Intel said it will acquire 15 per cent stake in lithography specialist ASML Holding NV, as part of a Rs.22,404.37 crore ($4.1 billion) deal to accelerate the development of 450-mm wafer technology and extreme ultra-violet (EUV) lithography.

Under the deal, Intel will provide Rs.5,464.48 crore ($1 billion) to ASML's research and development programmes to help accelerate deployment of new technologies for 450-mm wafers and EUV lithography by as much as two years, the company said.

Also, Intel would buy 10 per cent stake in ASML for Rs.11,475.41 crore ($2.1 billion). The company said it is also committed to purchase an additional 5 per cent as part of ASML's programme to enable minority investments of up to a 25 per cent equity stake to its largest customers.

The first phase of the agreement consists of Intel committing to R&D funding of Rs.3,715.85 crore ($680 million) to assist ASML in accelerating the development and delivery of 450-mm manufacturing tools, while also taking a 10 per cent stake in the company.

The second phase, which is subject to ASML holder approval, includes an additional commitment by Intel of R&D funding of Rs.1,857.92 crore ($340 million) in ASML focused on accelerating EUV, as well as an equity investment of Rs.5,464.48 crore ($1 billion) for an additional 5 per cent ASML stake.

The companies expect both phases of the transaction to close after the shareholder vote in the third quarter.

"Productivity improvements driven by enhanced wafer manufacturing technologies, especially larger silicon wafers and enhanced lithography technologies with EUV are direct enablers of Moore's Law, which delivers significant economic benefits to consumers," said Brian Krzanich, Intel senior vice president and chief operating officer.

"The transition from one wafer size to the next has historically delivered a 30 to 40 per cent reduction in die cost and we expect the shift from today's standard 300-mm wafers to larger 450-mm wafers to offer similar benefits. The faster we do this, the sooner we can gain the benefit of productivity improvements, which creates tremendous value for customers and shareholders," Krzanich added.

"We are extremely encouraged that Intel has made these investments, which will benefit every semiconductor manufacturer in the industry," said Eric Meurice, president and chief executive officer, ASML. "We hope to be able to announce additional investments by our other customers in the coming weeks."

Intel intends to fund its R&D and equity investments in ASML from cash on hand at its offshore subsidiaries.





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