Taiwanese TSMC takes 5procent stake in ASML and joins ASML’s Customer CoInvestment Program for Innovation

Taiwanese TSMC takes 5% stake in ASML and joins ASML’s Customer Co-Investment Program for Innovation

ASML Holding NV announced that TSMC has joined its Customer Co-Investment Program for innovation, committing to invest EUR 276 million in research and development of next generation lithography technologies, which include Extreme Ultraviolet (EUV) lithography technology and 450-millimeter lithography tools, over the next five years as well as EUR 838 million in a 5 percent ASML equity stake.

"One of the biggest challenges facing IC scaling today is how to effectively control the escalating wafer manufacturing cost," said Shang-yi Chiang, TSMC executive vice president and co-chief operating officer. "We are confident that the additional funding for ASML's research and development programs will help secure and accelerate EUV development activities, in parallel with the necessary focus on improved performance of existing optical lithography tools and speed up the deployment of new technologies for 450 millimeter wafers. This effort will help the industry control wafer cost, and therefore protect the economic viability of Moore's Law."

As part of ASML's Customer Co-Investment Program, ASML may issue up to an aggregate 25 percent minority equity stake to customers. The entire cash proceeds from the share issuance will be returned to ASML shareholders (not including participating customers) through a synthetic buy-back. With Intel and TSMC now committing to the Co-Investment Program, 20% equity has been committed. The remaining 5% equity holding potential is being discussed with other customers.

Source BOM