Intel to invest $4.1 bn in ASML Holdings for developing next-gen chips
10 Jul 2012
Intel Corp, the world's largest chip maker, yesterday said that it will bankroll the next-generation chipmaking technology by investing $4.1 billion in Dutch chip-equipment maker ASML Holding NV (ASML)
The Santa Clara, California-based Intel will fund ASML's research programmes and buy an initial 10-per cent stake in the company.
Intel will initially commit €829 million ($1 billion) to ASML's research and development programmes to help accelerate deployment of new technologies for 450-millimetre (mm) wafers and extreme ultra-violet (EUV) lithography for two years and also buy 10 per cent of ASML for €1.7 billion ($2.1 billion).
Intel has also committed to buy an additional 5 per cent of ASML under the European company's programme to enable minority investments of up to a 25 per cent equity stake to its largest customers.
Intel's stake in ASML will not exceed 15 per cent and the shares will be subject to lock-up and voting restrictions.
Intel's total investment in R&D funding and equity purchase will total €3.3 billion ($4.1billion).
Intel said that continued research and development in the field of lithography is critical to the long-term growth of the semiconductor industry.
