TAIPEI--Global contract chip maker Taiwan Semiconductor Manufacturing Co. TSM +2.24% said Sunday it has acquired 5% of Dutch semiconductor-equipment maker ASML Holding NV for 838 million euros ($1.04 billion) as it aims to accelerate the development of next-generation semiconductor-manufacturing technology.
TSMC also said it will commit EUR276 million over five years to ASML's research and development programs that help produce cheaper and more-energy-efficient chips. "This effort will help the industry control wafer cost, and therefore protect the economic viability of Moore's Law," said Shang-yi Chiang, TSMC's executive vice president and co-chief operating officer, in a statement.
It's Great! Intel is forcing TSMC's hand to stay in the game, ASML gets another Billion to work with. Soon Samsung will pony up.
Intel needs to have something others don't have in order to fill all of their fab space with the type of demand needed for 5 fabs, one with a million sq feet. 450mm will double the output, what does the shrink from 45nm and 32nm down to 22nm do for capacity by itself.
If others can't compete in the future Intel aquires greater market share.