Intel, ASML set deal for next-gen chip technology
7/9/12 4:26 PM ET (MarketWatch)
SAN FRANCISCO (MarketWatch) -- Intel Corp. and ASML Holding N.V. announced a series of deals on Monday afternoon by which Intel will invest more than $3 billion in the chip-maker and fund another $1 billion in R&D activities designed to "accelerate the development" of 450-millimeter wafer technology and extreme ultra-violet, or EUV, lithography. In the first phase of the deal, Intel will make a $2.1 billion equity investment in ASML and commit about $680 million in R&D. The second phase involves a $1 billion equity investment and $340 million in R&D. Intel will hold about 15% of ASML's outstanding shares following the deal. "As part of these agreements, Intel is also committing to advanced purchase orders for 450mm and EUV development and production tools from ASML," read a statement from the two companies. Shares of ASML were up nearly 5% in after-hours trading following the news on Monday afternoon, while Intel shares declined fractionally.