Date: 10/07/2012

Intel to invest in ASML to fast develop semiconductor equipment

Intel Corporation to invest in semiconductor equipment maker ASML Holding N.V. to develop 450-millimeter (mm) semiconductor wafer technology and extreme ultra-violet (EUV) lithography totaling €3.3 billion (approximately $4.1 billion).

In the first phase Intel is committing R&D funding of €553 million (approximately $680 million) to assist ASML in accelerating the development and delivery of 450-mm manufacturing tools, as well as an equity investment of €1.7 billion (approximately $2.1 billion) for approximately 10 percent of ASML's pre-transaction issued shares. Intel will record the R&D investment as a combination of R&D expense and pre-payments on future tool deliveries.

The second phase of the program is conditioned upon ASML shareholder approval. It includes an additional commitment by Intel of R&D funding of €276 million (approximately $340 million) in ASML focused on accelerating EUV, as well as an equity investment of €838 million (approximately $1.0 billion) 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 €2.5 billion (approximately $3.1 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.

To know more visit intel.com