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Intel orders ASML machine still on drawing board as chipmakers look for an edge -Breaking

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© Reuters. FILE PHOTO – The Intel Corporation logo can be seen in Manhattan’s store, New York City on November 24, 2021. REUTERS/Andrew Kelly

Toby Sterling

AMSTERDAM, (Reuters) – Intel (NASDAQ) placed its first order for ASML’s advanced chipmaking machine. This is a move that will help semiconductor makers get ahead in a booming market. It remains on the drawing boards and won’t be delivered until years later.

ASML announced Wednesday that it has received five orders for its next-generation lithography machines and an additional order for the model still in development. This is in addition to better than expected fourth quarter earnings.

The companies also released a joint press release stating that Intel was their buyer.

ASML’s highest-end commercial machines, also known as EUV (Extreme Ultraviolet) light waves, which they use to map circuitry in computer chips, measure approximately the same size as a bus. They cost about $150 million each.

To build a cutting-edge chip plant, you need 9-18 of these. This makes them one of the biggest capital costs for chipmakers.

ASML is only manufacturer of such machines. Its EUV clients include the top chipmakers in the globe, TSMC, Samsung (KS), South Korea and Intel.

ASML announced that five new iterations of its system have been ordered by customers. The “High NA” EUV machines will use a more complex lens system.

In 2023, the first prototypes will be delivered. The prototypes aren’t expected to be in mass production before 2025.

Intel is determined to regain its status as the maker of the smallest, fastest and most powerful chips, TSMC. It had been previously known as being the first purchaser of a High NA machine ASML’s ASML EXE:5000. This will help chip manufacturers reduce their size later in the decade.

Intel stated Wednesday that it was purchasing the EXE5200. This will allow for several improvement, including increased productivity. The price was not mentioned by either company.

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