Tags: intel | invest | europe | asml

Intel to Invest $4.1 Billion in Europe's ASML

Monday, 09 Jul 2012 05:11 PM

Intel Corp., the world’s largest semiconductor maker, agreed to invest as much as $4.1 billion chip equipment maker ASML Holding NV in exchange for an equity stake.

The U.S. company will take an initial 10 percent stake in ASML for about $2.1 billion, and later take an additional 5 percent stake for about $1 billion pending shareholder approval, Santa Clara, California-based Intel said Monday in a statement. ASML will also get about $1 billion more in stages to speed up the delivery of new equipment needed for larger silicon wafer- based production.

ASML’s lithography machines perform a crucial step in the process of manufacturing computer chips called lithography. Such machines can take years to prepare and deliver. The chip industry is planning to move to using 450 millimeter disks of silicon -- compared with the current 300 millimeter -- enabling more output per production run.

Intel’s shares fell 1.7 percent in extended trading. Earlier, they rose 0.1 percent to close at $26.17 in New York. The stock has advanced 7.9 percent this year.

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2012-11-09
Monday, 09 Jul 2012 05:11 PM
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