TSMC will invest €838m to acquire 5% in ASML
Taiwan Semiconductor Manufacturing Company (TSMC) has signed an agreement with Dutch firm ASML to invest €1.1bn in the latter's Customer Co-Investment Program that aims to develop new chip making technology.
The programme will accelerate the development of new semiconductor manufacturing technologies, which include extreme ultraviolet (EUV) lithography technology and 450-millimeter lithography tools.
As part of the agreement, TSMC will invest €838m in ASML to acquire 5% of its equity and has committed €276m for ASML's research and development programmes over next five years.
TSMC executive vice president and co-chief operating officer Shang-yi Chiang said one of the biggest challenges the IC industry facing today is how to effectively control the escalating wafer manufacturing cost.
"The additional funding for ASML's research and development programmes will help secure and accelerate EUV development activities, in parallel with the necessary focus on improved performance of existing optical lithography tools and speed up the deployment of new technologies for 450-millimeter wafers," Chiang added.
"This effort will help the industry control wafer cost, and therefore protect the economic viability of Moore's Law."
ASML chief executive officer Eric Meurice said the Customer Co-Investment Program announced on 9 July 2012 aims to secure and accelerate key lithography technologies.
"These technologies will benefit the entire industry and are not restricted to our Co-Investment partners," Meurice said.
The current agreement is an extension of a long-term agreement between ASML and TSMC, which also included the development of the 193-nanometer immersion lithography.
