Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

ASML to sell 15 next-generation systems to U.S. chipmaker

Published 04/22/2015, 07:01 AM
Updated 04/22/2015, 07:12 AM
© Reuters. File photo of ASML's logo in Veldhoven
INTC
-
AAPL
-
0593xq
-

By Toby Sterling

AMSTERDAM (Reuters) - ASML, Europe's largest supplier to computer chip makers, will sell 15 of its next-generation machines to a single U.S. customer, it said on Wednesday, in a deal that could be worth more than $1 billion.

Analysts identified the likely buyer of the lithography systems as Intel (NASDAQ:INTC) and said the deal would not only boost ASML growth for years to come, but was also a big vote of confidence in the technology.

The extreme ultraviolet (EUV) chip etching systems - which use focused energy beams to trace out the circuitry of semiconductors, making them smaller and faster than ever - have a list price of 95 million euros ($102 million) each.

"In our view this is a clear sign of trust in the new technology, which will be welcomed by the market," said ING analyst Robin van den Broek, who rates shares a "hold".

"Moreover, it will also put pressure on other chip manufacturers, especially logic clients, to also consider bulking up orders for EUV," he wrote.

ASML shares were up 8.6 percent at 99.50 euros by 0644 EDT.

ASML spokesman Niclas Mika said the first two systems in Wednesday's order would be delivered this year.

Intel declined to comment.

The world's largest chip makers all use ASML's machines, but Intel and Taiwan Semiconductor (TSMC) are pushing hardest to integrate the new machines into their manufacturing process. TSMC has said it expects to have a machine in full-scale commercial use by the end of next year.

Several leading chipmakers have invested in both ASML and the EUV technology itself. Intel holds 14.37 percent of ASML, while TSMC and Samsung Electronics (KS:005930) have smaller stakes.

Separately, ASML said last week it expected to ship six EUV systems this year. TSMC has confirmed it will take two. Now that Intel is expected also to take two, analysts will be looking to see whether Apple (NASDAQ:AAPL)'s major chip supplier Samsung will be purchasing the final pair.

© Reuters. File photo of ASML's logo in Veldhoven

($1 = 0.9295 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.