(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
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