Intel Makes an Agreement with ASML to Accelerate 450 mm Wafer Development

The past several days were marked by the Intel's announcement about the celebration of a contract with ASML company. Such step has been dictated by the company's intentions to invest into the development of 450 mm wafers and EUV technologies. In accordance with the preliminary estimates, the general investment rate will reach $4.1 billion. The major target of the cooperation is to decrease the term of lithography equipment commissioning by two years, and stimulate the development of technologies targeted at 450 mm wafers. The implementation of the predesigned plans will allow the manufacturers of semiconductor components to receive a range of benefits, among which is the cut of expenses.

With the purpose to facilitate in the solution of this technological problem, Intel will take part in a dedicated program. This program includes financial backup of scientific and research projects, as well as, equity investing campaigns in ASML.

The initial stage of this program presupposes the accomplishment of the first investment transaction (of about $680 million), directed to the development of tools for the 450 mm wafers production. The volume of equity investments will reach approximately $2.1 billion and will be directed to the acquirement of about 10% ASML shares.

The second stage presupposes the additional Intel's investment of $340 million targeted at the research and design of EUV technologies. At the same time, the rate of equity investments will reach $1 billion which will be enough for the acquirement of 5% ASML shares. As a result, Intel will become the owner of ASML's 15% shares. The overall rate of equity investing will go up to $3.1 billion.
Moreover, the outline of the agreement presumes the Intel's placement of orders for the acquirement of equipment for the research and development of EUV and 450 mm wafers.