Intel Goes Dutch With $4.1B ASML Deals

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.

>To submit a news tip, send an email to: tips@thestreet.com.

Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices.

If you liked this article you might like

7 Essential Rules for Investing in Tech Stocks

Hewlett Packard Enterprise Becomes the Latest Tech Titan to Slash Jobs

Your Guide to Making a Lot of Money on the Driverless Car Boom

Buying Nvidia Now Is Like Getting Intel Way Back in 1993, Jim Cramer Says

Google's Waymo Teams With Intel on Self Driving Technology