Intel is speerheading the development in manufacturing process, but this comes at a cost. Intel has now acquired a part of ASML to speed up the development of litographic tools that is required by future manufacturing nodes.
ASML is one of many actors that develop and manufacture litographic tools that are used when making semiconductors found inside all kinds of electronics. Being able to manufacture smaller and more complex circuits have always been a priority, since you can fit more transistors on the same surface as before, lower energy consumption and in time production costs. We are not far from the theoretic limitation of silicon based circuits, which is already starting to show in the price of new nodes, which has forced many companies to re-evaluate their plans for the future, since a transition to the latest manufacturing node is not always the best alternative.
“A critically important aspect of this transaction is the provision for additional funding of ASML’s industry-leading EUV and 450 mm development work. Current lithography technologies are being stretched to enable the industry to deliver smaller, faster, cheaper, and lower power devices through smaller geometries on advanced manufacturing nodes. However, this results in increased manufacturing complexity and capital expenditures through Multiple Patterning whereby silicon wafers are processed multiple times to etch the finest geometric patterns onto the silicon. With the successful introduction of EUV lithography in high-volume manufacturing, multiple processing steps on critical layers can be eliminated on advanced manufacturing nodes, resulting in substantial manufacturing productivity gains, product power and performance enhancements, and lower capital expenditures. Transition from 300 mm wafer size to 450 mm wafer size will further increase manufacturing efficiencies for very high volume manufacturing.”
For Intel’s Tick-Tock strategy this is not an option, without the most essential tools it will get nowhere. To speed up the developemnt of these Intel has acquired 15 percent of ASML for 2.55 billion euro. Besides buying a part of the company it will invest 553 million euro to accelerate the development of tools for production of 450 millimeter wafers. The copmany also invests 277 million euro in the development of EUV (Extreme Ultraviolet litography) that will become a necessity for manufacturing circuits at 10 nanometer and below.
That Intel decides to invest in ASML have many explanations, but the biggest reason is probably the relatively low demand for the advanced manufacturing technologies that Intel strives for. If Intel is one of few companies that needs these tools it is only logical for it to make this investment. This will most likely pay off for intel since ASML has many clients that will be able to take advantage of the faster development. ASML will go public and sell stock to interested actors, in the race for accelerating the development of future manfuacturing nodes.
ASML hopes that the tools for 450 millimeter wafers and EUV ready in the “second half of the decade”, which is in line with Intel’s roadmap for hitting 10 nanometer in 2016. At 10 nanometer Intel will be able to fit four times as many transistors as the current 22 nanometer technology.
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