After the transaction, which is expected to be completed in Q4 2023, Intel will retain majority ownership of IMS, an Austria-based company engaged in providing multi-beam mask writing tools for advanced extreme ultraviolet lithography development

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TSMC to acquire a 10% stake in Intel's subsidiary IMS Nanofabrication. (Credit: Intel Corporation)

Intel has agreed to divest a stake of nearly 10% in its IMS Nanofabrication Global (IMS) business to Taiwan Semiconductor Manufacturing (TSMC).

The deal values 100% of IMS at about $4.3bn.

Based in Austria, IMS is a majority-owned subsidiary of Intel that offers multi-beam mask writing tools that are employed for developing advanced extreme ultraviolet lithography (EUV).

The EUV is widely deployed in cutting-edge technology nodes that allow the most demanding computing applications, including artificial intelligence (AI) and mobile.

TSMC business development senior vice president Kevin Zhang said: “TSMC has been working with IMS since 2012 on the development of multi-beam mask writers for advanced technology nodes.

“This investment continues the long-term partnership between TSMC and IMS to accelerate innovation and enable deeper cross-industry collaboration.”

In June 2023, Intel agreed to sell a stake of around 20% in IMS to Bain Capital Special Situations at the same valuation of approximately $4.3bn. This deal is expected to close in Q3 2023.

According to Intel, the investments from Bain Capital and TSMC will provide IMS with more independence.

The autonomy will also help IMS to fast-track its growth and power the next phase of lithography technology innovation to facilitate the industry’s move into new patterning systems, like high-numerical-aperture (high-NA) EUV.

Intel made its initial investment in IMS in 2009 and subsequently acquired the remaining stakes in 2015.

Upon the completion of the transaction with TSMC, Intel will maintain the majority ownership of IMS, and the Austrian business will continue to operate as a standalone subsidiary.

Intel corporate development senior vice president Matt Poirier said: “This investment demonstrates the deep industry collaboration IMS is pioneering to advance critical lithography technology for leading-edge nodes, which will benefit the entire semiconductor manufacturing ecosystem.

“With enhanced independence, IMS will be well positioned to address the significant growth opportunity for multi-beam mask writing tools over the next decade and beyond.”

The deal is anticipated to be complete in Q4 2023.