ASML Holding NV (ASML: Quote) 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 over the next five years as well as EUR 838 million in a 5 percent ASML equity stake. The lithography technologies include Extreme Ultraviolet or EUV lithography technology and 450-millimeter lithography tools.
ASML said that the objective of the Co-Investment Program is to accelerate its development of EUV technology beyond this current generation and its development of future 450 mm silicon wafer technology, both due in the second half of this decade.
ASML said that 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, ASML Holding said. The shares to be issued to TSMC, Intel and any other customers that participate in the Co-Investment Program will be non-voting except in exceptional circumstances.
In July 2012, Intel Corp. (INTC: Quote) said it would take part in a multi-party development program and invest about $4.1 billion in ASML Holding NV in a bid to speed up deployment of key chip technologies critical to long term growth, amid some sluggishness clouding the industry.
In July 2012, ASML said it can issue new shares equivalent to 9.99% of ASML's issued share capital to Intel as per the decisions made at ASML's 2012 Annual General Meeting of shareholders.
The issuance of further shares in the Co-Investment Program to both Intel and TSMC (and any additional customers who may participate in the Co-Investment Program) as well as the synthetic buyback are subject to shareholder approval at the extraordinary meeting of shareholders scheduled for September 7, 2012.
TSMC is headquartered in the Hsinchu Science Park, Taiwan, and has account management and engineering service offices in China, Europe, India, Japan, North America, and, South Korea.
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by RTT Staff Writer
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