ASML to Buy 24.9% Stake in Carl Zeiss SMT for EUR1 Billion in Cash
November 03 2016 - 4:30AM
Dow Jones News
By Maarten van Tartwijk
AMSTERDAM--ASML Holding NV (ASML.AE) said Thursday it will
invest 1 billion euros ($1.1 billion) in a German manufacturer of
optical systems as it continues to develop its latest chip-making
machines into the next decade.
The investment in Carl Zeiss SMT, in which ASML will take a
24.9% stake, is meant to facilitate the development of future
extreme ultraviolet lithography, or EUV, systems, ASML said in a
news release.
Chief Executive Peter Wennink said the partnership would create
the right conditions to make the machines more sophisticated just
as the first chips made by the technology are expected to roll off
production lines in 2018.
"We see a long and successful future for EUV lithography in
advanced chip manufacturing," he said. The investment could allow
"our customers reap the rewards of their EUV investments up to the
end of the next decade," he added.
ASML will invest around EUR220 million to support Carl Zeiss's
research and development activities, while it has also committed
EUR540 million in capital expenditure and other investments for the
next six years. In light of the investment, ASML said it would
prolong the suspension of its share buyback program for the time
being.
Write to Maarten van Tartwijk at maarten.vantartwijk@wsj.com
(END) Dow Jones Newswires
November 03, 2016 04:15 ET (08:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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