- ASML buys 24.9% of Zeiss subsidiary Carl Zeiss SMT for EUR 1 billion in cash
- Start of development of entirely new optical system for the future generation of EUV
- ASML supports Carl Zeiss SMT`s R&D and capex for approximately EUR 760 million over the next 6 years
Netherlands-based ASML, a chip industry equipment providers, and Germany-based Carl Zeiss SMT, a business group of Carl Zeiss (Zeiss), have agreed to strengthen their long-standing partnership in the semiconductor lithography business. The main objective of this agreement is to facilitate the development of the future generation of Extreme Ultraviolet (EUV) lithography systems due in the first few years of the next decade. This technology will enable the semiconductor industry to produce much higher performance microchips at lower costs.
Zeiss and ASML jointly announced today, that they have agreed on a 24.9% minority stake of ASML in Zeiss’s subsidiary Carl Zeiss SMT, for which ASML will pay EUR 1 billion in cash. The companies stated that no further exchange of shares is planned or agreed.
ASML is a key supplier of semiconductor patterning products and services used by the world`s top producers of microchips. With its high-performance optics, Carl Zeiss SMT supplies a subsystem of ASML´s semiconductor lithography scanners and is ASML`s strategic partner. ASML and Carl Zeiss SMT have been in close partnership for more than 30 years.
A new cycle of investments required for the development of an entirely new optical system for the future generation of EUV, expected to be provided to the chip making industry in the first few years of the next decade, has triggered the partners to take a further step in the collaboration.
The next generation of EUV optics will offer a higher numerical aperture (NA), making it possible to further reduce critical dimensions in the lithography process. The current EUV systems have an optical system with NA of 0.33 whereas the new optics will have NA larger than 0.5, enabling several generations of geometric chip scaling.
In addition to the agreement of the minority interest, the two companies have also agreed that ASML will support Carl Zeiss SMT`s research and development (R&D) for approximately EUR 220 million as well as capital expenditures and other supply chain investments for approximately EUR 540 million over the next 6 years.
These investments will predominantly be allocated at Carl Zeiss SMT’s main location in Oberkochen, Germany, and will primarily be used for capacity and resource expansions, with positive effects on long-term employment at this location. Carl Zeiss SMT will remain fully integrated into the structure of the Zeiss Group as one of the major and important business groups.
Carl Zeiss SMT will pay an annual dividend to its shareholders Carl Zeiss AG and ASML. ASML expects that the minority share transaction will be accretive to its earnings before adjustments related to accounting policy and basis differences. Furthermore, ASML`s contribution to Carl Zeiss SMT`s R&D and capital expenditures will be taken into account in the future pricing for SMT`s next generation EUV optics.
The transaction has been approved by both companies’ Supervisory Boards. ASML will fund the transaction from available cash, potentially supplemented by new debt. The transaction is subject to regulatory clearance and is expected to be closed in the second quarter of 2017.
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