Intel invests in fab tool supplier ASMI
After down Q1 sales results from ASM International, fab tool customer Intel buys 4% of ASMI?s total common share capital.
By Gail Flower, Contributing Editor -- EDN, May 6, 2009
Intel Capital, Intel Corp’s global investment arm, has purchased 4% of ASM International’s (ASMI) total common share capital, leaving 54 million common shares outstanding.
The Netherlands-based ASMI supplies equipment and materials for producing semiconductor devices, both front-end wafer processing and back-end packaging tools, and is one of Intel’s key fab tool suppliers.
“Equipment and materials innovation is critical to enabling new capabilities in semiconductor device manufacturing,” said Arvind Sodhani, Intel executive VP and president of Intel Capital, in a statement. “Our investment in ASMI is part of Intel Capital’s strategy to foster innovation that aligns with Intel’s manufacturing technology roadmap.”
Intel’s support comes just after ASMI reported lackluster Q1 results. Q1 net sales stood at $119 million (EUR 89.1 million), down 41% from Q4 2008 and down 55% from Q1 2008. On the upside, future prospects are hopeful with bookings in Q1 at $112.8 million (EUR 84.4 million), up 4% from Q4 2008.
Intel isn’t the only company to invest in ASMI at a time when financial results appear weakened. Last month rival TEL (Tokyo Electron Ltd) purchased 4.9% of ASMI's total common share capital. TEL said its participation in ASMI is intended as a long-term investment, without any intention of increasing ASMI shareholding. In December, the companies entered into a licensing partnership concerning ASMI’s ALD (atomic layer deposition) patents in the field of batch ALD.
In related news, ASMI last month announced that an undisclosed Taiwan foundry selected its high-k ALD tool for volume manufacturing of 28-nm node high-k gate dielectric process. ASMI plans to deliver additional Pulsar process modules in Q2 to the foundry for an advanced node development program.
“Achieving a successful high-k manufacturing process for the 28-nm node is a testament to ASM’s ability to integrate new materials into manufacturing,” said Glen Wilk, business unit manager for transistor products as ASMI, in a statement. “Having qualified our high-k process demonstrates its readiness for manufacturing at the 28-nm node, and we look forward to advanced developments that extend those same benefits to future nodes.”
