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: firstname.lastname@example.org. Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV