NEW YORK ( TheStreet) -- Intel (INTC) has announced a series of deals totaling $4.1 billion with semiconductor manufacturing specialist ASML Holding N.V (ASML) as the chip maker looks to boost silicon manufacturing.
As part of the agreement, Intel is investing around $1 billion in ASML's R&D over five years, and will eventually take a $3.1 billion, 15%, stake in the Netherlands-based firm.
The first phase of the program, which is pending regulatory approval, sees Intel committing around $680 million to R&D funding to help ASML speed up its delivery of 450-millimeter manufacturing tools. Intel will also make an equity investment of $2.1 billion for around 10% of ASML's pre-transaction issued shares.
The second part, which is subject to ASML shareholder approval, involves an additional $340 million of R&D funding to accelerate Extreme Ultra-Violet Lithography (EUV), a process seen as key to the future of chip making. Intel will also take an additional 5% of ASML's shares for an equity investment of around $1 billion."We are extremely encouraged that Intel has made these investments, which will benefit every semiconductor manufacturer in the industry," said ASML CEO Eric Meurice, in a joint statement released after market close. "We hope to be able to announce additional investments by our other customers in the coming weeks." Intel shares dipped 1.15% to $25.87 in extended trading on Monday. -- Written by James Rogers in New York. Follow @jamesjrogers >To submit a news tip, send an email to: email@example.com. Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices.
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