The Taiwan Semiconductor Manufacturing Company (TSMC) which is the world’s largest contract chip maker has agreed to invest $1.4bn (€1.1bn, £850M) in Dutch equipment manufacturing company ASML.
This is seen as a key strategic investment as ASML produces chip circuit printing machines and has been developing technology relating to extreme ultra violet lithographic transfer which will allow the next generation of even smaller wafer sizes to be produced.
TSMC has allocated €276M for research and development purposes and €838M to acquire a 5% stake in ASML.
It is hoped that the research and development funds can be used by ASML to develop machinery capable of handling larger 450mm silicon wafers which will deliver substantial cost benefits (the current standard for silicon wafers is 300mm). This coupled with shrinking dies sizes will further increase chip yields and generate additional financial returns.
The BBC has more on this article here.
