Intel buys a large chunk of ASML

And gives them another $1 billion too

Jul 9, 2012 by

Intel is buying a large chunk of ASML, $3.1 billion to be exact, and giving them more money too. On top of this, there is another $1 billion to speed up EUV and 450nm technology.

The exact breakdown is $680 million to speed up 450mm tools and $340 million for EUV widgets, we are hearing a port for the EUV tool controllers to Tizen is a big factor in this deal. The total there is a actually $1.02 billion, but what’s $.02 billion between friends. This is to be paid over five years.

On top of this, Intel is buying a large chunk of ASML, 15% in total, split in to two parts. The first is 10% of the company before ASML floats 25% of their shares to major customers, and 5% more when the shares are public. The tab for the first 10% is $2.1 billion, the last 5% will cost $1.0 billion, totaling $3.1 billion.

This deal has significant ramifications to the entire semiconductor industry, and we will bring you analysis of that as soon as the conference calls and announcements are over. In the end, Intel is spending money to pull in technologies that they see as critical, and ASML is taking that money and smiling. It remains to be seen who, if anyone, also jumps on board with ASML.S|A

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Charlie Demerjian

Roving engine of chaos and snide remarks at SemiAccurate
Charlie Demerjian is the founder of Stone Arch Networking Services and SemiAccurate.com. SemiAccurate.com is a technology news site; addressing hardware design, software selection, customization, securing and maintenance, with over one million views per month. He is a technologist and analyst specializing in semiconductors, system and network architecture. As head writer of SemiAccurate.com, he regularly advises writers, analysts, and industry executives on technical matters and long lead industry trends. Charlie is also available through Guidepoint and Mosaic. FullyAccurate