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Acronym-loving Samsung joins Intel and TSMC, buys stake in ASML

Daniel Cooper, @danielwcooper
August 27, 2012
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Samsung's round of cash-flashing continues with a $629 million purchase of a three-percent stake in ASML. It's joining Intel and TSMC in pumping money into the Dutch business, developing tooling for chip-making machines with Extra Ultraviolet Lithography (EUV) designed to "extend Moore's Law." It'll also help reduce the cost of future silicon, since it'll enable the companies to use wider silicon wafers along the manufacturing line. Given that Samsung's investment caps of a project to raise nearly $5 billion in cash and that ASML's home is just five miles west of PSV Eindhoven's stadium, we just hope they threw in a few home tickets for their trouble.

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Samsung joins ASML's Customer Co-Investment Program for Innovation, completing the program

VELDHOVEN, Netherlands, Aug 27, 2012 (BUSINESS WIRE) -- ASML Holding NV ASML +0.26% (amsterdam:ASML) announces today that Samsung Electronics has joined its Customer Co-Investment Program for Innovation and has committed to contribute EUR 276 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 EUR 1.38 billion has now been met. Samsung has also committed to invest EUR 503 million in a 3 percent 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 under the Customer Co-Investment Program, 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 percent minority equity stake in ASML for EUR 3.85 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 on 9 July 2012, 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 General 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.

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