Intel has placed the first order with ASML for an advanced chip-making tool that will cost significantly more than $340 million, Reuters reported.
ASML’s most advanced machines in current commercial production, known as EUV lithography systems because of the Extreme Ultraviolet light waves they use to map out the circuitry of computer chips, are as big as a bus and cost around $150 million each.
A cutting-edge chip plant needs 9-18 of these machines, which are one of the biggest capital costs for chipmakers.
ASML is the only maker of such machines and its EUV customers include the world’s biggest chipmakers, TSMC of Taiwan, Samsung of South Korea and Intel, among others.
ASML said it has received orders for five prototypes of the next iteration of the system, known as High NA EUV machines, which will have a different optical system with a higher numerical aperture, will be even larger, and cost around $300 million each.
The first prototypes are to be shipped to customers for testing in 2023, CFO Roger Dassen said at a post-earnings press conference.
Intel, which is trying to win back its position as maker of the smallest and fastest chips from current leader TSMC, had previously identified itself as the first buyer of a prototype High NA machine, ASML’s EXE:5000.
Intel said it will also buy the first EXE:5200, the first model intended for use in commercial production, which it may receive by the end of 2024.
The Veldhoven, Netherlands-based ASML forecast sales growth of 20 percent in 2022 despite a fire this month at its Berlin plant.
The supplier to chipmakers said it reported fourth quarter net profit of 1.77 billion euros ($2 billion) and sales of 5 billion euros with margins of 54.2 percent.