Taiwanese chipmaker pumps $1.4bn in Dutch supplier

ASML, one of the world’s largest providers of tools for chipmakers, has received yet another vote of confidence by its clients, with Taiwan Semiconductor Manufacturing Co. (TSMC) announcing this morning that it was investing up to $1.4bn into the Dutch firm.

This investment follows the announcement last month that tech giant Intel had taken a ten percent stake in ASML for $1.7bn. TSMC will gain a five percent share of the business from their investment.

The Taiwanese firm is the largest contract chipmaker in the world, with sales of $4.3bn in the second quarter of this year, up 22 percent on the previous quarter’s results.

ASML is an industry leader in making machines that help make computer chips, and the investment that the company has received is seen as a continuing trend towards chip manufacturer’s trying to cut costs and develop faster and more efficient chips.

The Dutch firm hopes that the investment in their business will allow them to develop machines that will make bigger circular wafers, which are used to cut computer chips.

After their investment last month, Intel’s chief operating officer Brian Krzanich explained: “The transition from one wafer size to the next has historically delivered a 30 to 40 percent reduction in die cost and we expect the shift from today’s standard 300mm wafers to larger 450mm wafers to offer similar benefits.

“The faster we do this, the sooner we can gain the benefit of productivity improvements, which creates tremendous value for customers and shareholders.”