As semiconductor makers attempt to stay ahead in a burgeoning sector, Intel has placed the first order with ASML for a new, sophisticated chipmaking gear that will cost “considerably” more than US$340 million (A$470 million).
ASML announced orders for five of its next-generation lithography equipment, as well as an order for an even newer model that is currently being designed, in addition to better-than-expected fourth-quarter profitability.
The businesses revealed in a separate joint announcement that Intel was the buyer.
ASML’s most advanced commercial equipment, known as EUV lithography systems due to the “Extreme Ultraviolet” light pulses they utilize to map out the circuitry of computer chips, are the size of a bus and cost over US$150 million apiece.
A cutting-edge chip facility requires nine to 18 of these machines, which are one of the chipmaker’s largest capital expenses.
ASML is the sole manufacturer of such equipment, and among its clients are the world’s largest chipmakers, including TSMC of Taiwan, Samsung of South Korea, and Intel.
ASML said that it has received orders for five prototypes of the next generation of the system, known as “High NA” EUV machines, which would feature a new optical system with a greater numerical aperture, be bigger, and cost roughly US$300 million each.
CFO Roger Dassen stated at a post-earnings news conference that the first prototypes will be supplied to clients for testing in 2023.
Intel, which is attempting to reclaim its position as the creator of the smallest and fastest chips from current leader TSMC, has previously identified itself as the first customer of an ASML EXE:5000 prototype High NA machine.
Intel also stated that it will purchase the first EXE:5200, the first model meant for commercial manufacturing, which it hopes to acquire by the end of 2024.
Dassen estimated that the cost of EXE:5200 systems would be “considerably” more than US$340 million.
