ASML Holding NV (NASDAQ:ASML) (Amsterdam:ASML) announces today that it has established a program to enable minority equity investments in ASML by its largest customers in addition to commitments to fund ASML’s research and development (R&D) spending for future programs. The objective of the program is to accelerate ASML’s development of Extreme Ultraviolet (EUV) technology beyond this current generation and ASML’s development of future 450 mm silicon wafer technology, both due in the second half of this decade.
As part of this program, ASML may issue up to an aggregate 25 percent minority equity stake to customers. The entire cash proceeds from the share issuance will be returned to ASML shareholders (not including participating customers). Alongside these equity investments, participating customers would fund a significant portion of ASML’s research and development (R&D) activities for the next five years.
Intel is the first participant in the customer co-investment program, and has committed to acquire up to a 15% equity ownership interest at a subscription price of EUR 39.91 per share¹, and to also provide EUR 829 million to ASML in R&D funding, which will be dedicated to the development of 450 mm and EUV technology. Additionally, Intel has contractually committed to advance purchase orders for 450 mm and EUV development and production tools from ASML to support technology and infrastructure development under agreed upon conditions of sales.
Other customers are currently evaluating joining the program.“This funding and participation by a leading semiconductor manufacturer is an acknowledgement of the essential contribution of lithography technology in ensuring the continuation of Moore’s Law. 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. We welcome Intel as the first customer to agree to contribute to these investments, the results of which will be available to every semiconductor manufacturer with no restrictions,” said Eric Meurice, Chief Executive Officer of ASML. "We hope to be able to announce additional investments by our other customers in the coming weeks."
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