EmailIntel (INTC $25.98 -0.18) announced it has entered into a series of agreements with ASML (ASML $52.22 +3.72) intended to accelerate the development of 450-millimeter wafer technology and extreme ultra-violet lithography totaling EUR 3.3 billion (approximately $4.1 bln). The objective is to shorten the schedule for deploying the lithography equipment supporting these technologies by as much as two years, resulting in significant cost savings and other productivity improvements for semiconductor manufacturers. INTC to also initially purchase 10% of pre-transaction issued shares of ASML for EUR 1.7 billion ($2.1 billion) and commit to purchase an additional 5% of post-transaction issued shares as part of ASML's program to enable minority investments of up to a 25% equity stake to its largest customers INTC will then hold a total of 15% of ASML's issued shares.
The total equity investment will be EUR 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. ASML has stated its intention to sell up to a 25% aggregate stake in the company to Intel and other semiconductor manufacturers in this program. ASML is currently in discussions with other customers and has publicly indicated it expects others in the industry to participate in the R&D and equity program. Regardless of the outcome of ASML's discussions with other customers and upon completion of this two-phase program, Intel's ownership stake in ASML will not exceed 15 % of ASML's post-transaction issued shares and will be subject to lock-up and voting restrictions. ASML has stated its intention to sell up to a 25 % aggregate stake in the company (on a post-transaction basis) to Intel and other semiconductor manufacturers in this program. ASML is currently in discussions with other customers and has publicly indicated it expects others in the industry to participate in the R&D and equity program.
