The acquisition will boost ASML's development work on the next generation of chipmaking technology
Intel will invest around $4.1bn to buy 15% of Dutch semiconductor equipment provider ASML, to help fund its research into new chip technologies.
Intel has committed to supporting ASML's development of an advanced chipmaking technique, known as extreme ultraviolet or EUV lithography. This involves a $1bn commitment.
It also includes the development of 450mm silicon wafer technology, which is expected to be deployed in the second half of this decade.
Intel, the first participant in the programme, will initially acquire a 10% stake in ASML and a further 5% following shareholder approval, for a total of $3.1bn.
Intel senior vice president and chief operating officer Brian Krzanich believes that this circuit design scaling and enhanced productivity in wafer manufacturing technologies will continue to enable Moore's Law.
"This investment will reinforce EUV technology development and enable 450 mm prototype systems as early as 2015, allowing the industry to accelerate process development and manufacturing productivity programs," Krzanich added.
ASML chief executive officer Eric Meurice agrees.
"Moore's Law, which stipulates that transistor density and microchip performance doubles roughly every 18 months, requires ever-increasing investments by the semiconductor industry, and in particular the equipment industry."
ASML said other customers are currently evaluating joining the programme, which consists of two funding projects, a 450mm technology development project and a next-generation EUV development project.
As part of this programme, ASML may issue up to a 25% minority equity stake to customers.
The introduction of 450mm silicon wafers, a 50% jump from the current 300mm standard will boost scalability. The introduction of EUV lithography in high-volume manufacturing means that several processing steps can be eliminated, resulting in substantial manufacturing productivity gains, power and performance enhancements, combined with lower capex.
ASML has also offered its other biggest customers, TSMC and Samsung Electronics, to invest in its R&D initiative.
