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Components | July 10, 2012

Intel buys into ASML

Intel Corp. has entered into a series of agreements with ASML Holding N.V. intended to accelerate the development of 450-millimeter (mm) wafer technology and extreme ultra-violet (EUV) lithography totaling EUR 3.3 billion.
Intel is participating in a multi-party development program that includes a cash contribution by Intel to fund relevant ASML research and development (R&D) efforts as well as equity investments in ASML. The first phase of this program consists of Intel committing to R&D funding of EUR 553 million to assist ASML in accelerating the development and delivery of 450-mm manufacturing tools, as well as an equity investment of EUR 1.7 billion for approximately 10 percent of ASML's pre-transaction issued shares.

The second phase of the program is conditioned upon ASML shareholder approval. It includes an additional commitment by Intel of R&D funding of EUR 276 million in ASML focused on accelerating EUV, as well as an equity investment of EUR 838 million for an additional 5 percent of ASML post-transaction issued shares.

Intel will then hold a total of 15 percent of ASML's issued shares. The total equity investment will be EUR 2.5 billion. As part of these agreements, Intel is also committing to advanced purchase orders for 450-mm and EUV development and production tools from ASML.

Both phases of the program 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.

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