Intel invests $4bn in ASML to support R&D

Also, it has committed US$ 1 billion to the Dutch firm for carrying out extensive research and development ventures, while a massive amount of US$3.1 billion will be utilized for buying 15 percent equity shares in the ASML. Intel’s efforts to bankroll the next-generation chip technology of the Dutch firm will help Intel in accelerating innovation in the field of chip technology.

In addition, it will increase the trust and confidence of customers as well as sponsors in the European firm which recently helped Intel shares to a massive increase of 6 percent.

Intel mulling over new technology
With the investment, Intel is mulling over the development of EUV, extreme-ultraviolet lithography which will not only strengthen Intel’s domination in the chip world but will also prove extremely user-friendly as the technique will allegedly chop down the cost of chip manufacturing.

Time and again, various leading equipment manufacturers have tried their hands on the said technique, but to no effect. However, experts still believe that the EUV can prove extremely decisive in the production of smaller and cheaper chips which can give both the makers as well as the consumers a sigh of relief.

During the next two years, Intel and ASML will work on speeding up the transfer of chip manufacturing technology. Though a massive capital investment will be needed for the task, it will prove effective in delivering billion in terms of savings by reducing the overall cost of production.

The deal will gift Intel a plentiful of profits
Intel will soon grab a 10 percent share in its Europe-based supplier, while acquiring another 5 percent will be subjected to the approval of its shareholders; with an end goal of around $3.1 billion. Meanwhile, the company officials have expressed enthusiasm about the project, claiming that it will allow the transition to larger wafer size.

The investment made by Intel will allow the Company to take up a huge round of financial accountability for processing the transition to the alleged 450mm wafers.

“Going to 450mm, there needs to be more balance in meeting the cost between equipment makers and chipmakers,” an ASML spokesperson revealed on Monday.

Along with making big savings, the upcoming venture will also help Intel in safeguarding its existing technology lead.