Business Essentials for Professionals


Intel Places Orders For ASML System Worth “Significantly” More Than $340 Mln

Intel Places Orders For ASML System Worth “Significantly” More Than $340 Mln
Semiconductor makers across the world are striving to get an edge in this fast growing industry. 
This was evident in the United States based global chip maker Intel placing its first order with ASML for purchase of a new and more highly advanced chip making machine that the company says will be "significantly" costlier than the $340 million that it had stated previously.
This news was divulged by ASML while announcing a expectation beating quarterly earnings for the fourth quarter on Wednesday where the company also said that order for five of its next- generation lithography machines had been received by it already in addition to an order for an even technologically advanced model that the company is still designing,
The companies in a separate statement that the buyer of the under designing machine was Intel.
According to previous reports, the most advanced machines that ASML is currently commercially manufacturing are as large as a bus and comes with a price tag of about $150 million each. The machines are known as EUV lithography systems because of the "Extreme Ultraviolet" light waves used in them for mapping out the circuitry of computer chips.
Between 9 and 18 of those machines are required for a modern cutting edge semiconductor making factory and the cost for these machines are the largest capital costs for such companies.
Such machines are only made by ASML in the world and the list of customers for those machines comprise of the largest chip makers of the world including TSMC of Taiwan, Samsung of South Korea and Intel, among others.
Orders for five prototypes of its next generation machines based on the system have already been received by it, ASML said with the cost of each of the machines was at about $300 million. Those machines are known as "High NA" EUV machines which will comprise of a different optical system with a higher numerical aperture.
ASML CFO Roger Dassen said at a post-earnings press conference that the company will deliver the first prototypes of the machines to customers for trial in 2023.
Intel had previously identified itself as the first buyer of a prototype High NA machine, ASML's EXE:5000, as it attempted to reclaim its position as creator of the smallest and fastest chips from current leader TSMC.
On Wednesday, Intel said that it would purchase the first EXE:5200, the first model meant for commercial manufacturing, which it expects to receive by the end of 2024.
EXE:5200 systems, according to Dassen, will cost "considerably" more over $340 million.

Christopher J. Mitchell

Markets | Companies | M&A | Innovation | People | Management | Lifestyle | World | Misc