ASML Holding NV on Monday said that Samsung Electronics has joined customer co-investment program and acquired a stake in ASML. The proceedings from the investments will be used to advance development of 450mm semiconductor manufacturing tools as well as EUV lithography.
Samsung is committed to contribute €276 million ($345.2 million) to ASML’s research and development of next generation lithography technologies over five years. This completes the program, as the target for aggregate R&D funding commitments of €1.38 billion ($1.726 billion) has now been met. Samsung has also committed to invest €503 million in a 3% ASML equity stake under the same general terms as the other program participants.
Under the co-investment program, which was announced on July 9, 2012, ASML will accelerate the development of key lithography technologies needed to extend Moore’s Law, notably extreme ultraviolet (EUV) lithography. These technologies will benefit the entire industry, and will enable smarter, more powerful, more energy-efficient and cheaper electronic devices for consumers.
With the full program target of research and development funding committed, ASML no longer plans to solicit the participation of additional customers. As part of the program, Intel, TSMC and Samsung will each acquire ASML shares, equal to an aggregate 23% minority equity stake in ASML for €3.85 billion ($4.817 billion) in cash. The entire cash proceeds of the share issuance will be returned to ASML shareholders (not including participating customers) through a synthetic buy-back. The shares to be issued to Intel, TSMC and Samsung will be non-voting except in exceptional circumstances.
As announced, ASML can issue new shares equivalent to 9.99% of its issued share capital to Intel as per the authorizations granted at ASML's 2012 annual meeting of shareholders. The issuance of further shares in the co-investment program to Intel, TSMC and Samsung, as well as the synthetic buyback, are subject to shareholder approval at the extraordinary meeting of shareholders scheduled for September 7, 2012.