Intel said it will invest a total of EUR 3.3 billion in ASML, bringing its stake in the Dutch company to 15 percent.
Intel will initially buy 10 percent of ASML for EUR 1.7 billion and commit to purchasing an additional 5 percent. This is part of ASML's programme to enable minority investments of up to a 25 percent equity to its largest customers.
The investment money will boost the development of 450-mm wafer technology and extreme ultra-violet (EUV) lithography. The objective is to shorten the schedule for deploying the lithography equipment supporting these technologies by as much as two years, resulting in significant cost savings and other productivity improvements for semiconductor manufacturers.
The stake buy is subject to ASML shareholder approval. If approved, Intel will hold a total equity investment of EUR 2.5 billion. Both phases of the programme are subject to standard closing conditions, including customary regulatory approvals. The companies expect both phases of the transaction to close after the shareholder vote in the third quarter.
