Intel To Pay $1B For 10% Of ASML; First Move Into Chip Equipment Sector

By : Subscribe to David's | July 9, 2012 9:54 PM GMT

  • FOLLOW IBT: YOUR ONE-STOP NEWS SITE
  • Google Plus
(Photo: Reuters / Robin Ban Lonkhijsen)<br>ASML remains upbeat despite a drop in first-quarter profits.
(Photo: Reuters / Robin Ban Lonkhijsen)
ASML remains upbeat despite a drop in first-quarter profits.

Intel (Nasdaq: INTC), the No. 1 chipmaker, said it would commit as much as $1 billion to acquire a preliminary stake of 10 percent in Dutch semiconductor equipment maker ASML Holding (Nasdaq: ASML).

The move is the first by the Santa Clara, Calif., chipmaker to invest in one of its top suppliers. As a Dutch company, ASML in the past has had an easier time selling products in China than Applied Materials Inc. (Nasdaq: AMAT), the No. 1 maker of chipmaking equipment, which is also based in Santa Clara.

  • FOLLOW IBTIMES
  • Google Plus

Over time, Intel may increase its holding in ASML as high as 15 percent, the companies said, and Intel will spend as much as $4.1 billion in research and development.

The moves require shareholder approval. Shares of ASML jumped 6 percent to $51.34 in after-hours trading. Intel shares fell 1 percent to $25.83.

This article is copyrighted by International Business Times, the business news leader
Join the Conversation
Virgin Galactic SpaceShipTwo Completes Powered Flight
READ MORE
(Photo: Reuters)

PCBS Urges Jail Terms for Reckless Bankers

RBS and Lloyds plan to return to privatisation (Photo: Reuters)

Chancellor George Osborne to Unveil RBS and Lloyds Fate

BT Ian Livingston

BT Value Dives £1bn as CEO Ian Livingston Named Next UK Trade Minister

Nicos Anastasiades

Cyprus in Crisis: Troika Likely to Ignore Nicos Anastasiades' Angry Bailout Terms Letter

Japan's Prime Minister Shinzo Abe (L), German Chancellor Angela Merkel (C) and Russia's President Vladimir Putin take part in a group photo at the G8 Summit, at Lough Erne, near Enniskillen, in Northern Ireland June 18, 2013. (Photo: REUTERS)

Abenomics: Having Real Impact but Misses Opportunity on Cutting Corporation Tax

G8 leaders

G8 Agrees 'Lough Erne Declaration' on Tax Evasion Crackdown [VIDEO]

Crossrail

UK Guarantees Scheme: Treasury Has 'Credibility Gap' Amid 'Disappointing' £40bn Infrastructure Injection

A currency dealer (unrelated to the IBTimes UK story) observes foreign currency market movements in Tokyo July 5, 2007 (Photo: Reuters)

FX Fixing Scandal Exclusive: Whistleblower Alerted US, UK and Swiss Authorities in 2011

(Photo: Reuters)

Record £1m FCA Fine on Retail Sole Trader Gurpreet Singh Chadda

Spain protest austerity

IMF: Spain Making 'Strong Progress' in Economic Reforms

World
Indian Police Arrest A Suspect in The Mumbai Terror Attacks Probe

Featured Videos