Intel to offload part of IMS Nanofabrication business to TSMC in strategic move

Now, Intel is selling an additional 10% stake to TSMC, further solidifying IMS' position as a leader in lithography technology and paving the way for its continued growth and success.Intel has sold a 10% stake in its IMS Nanofabrication business to TSMC, valuing IMS at $4.3 billion and providing it with increased independence to drive innovation in lithography technology and capitalize on the growth opportunity for multi-beam mask writing tools.

Intel will still retain majority ownership of IMS
The investments from Bain Capital and TSMC will provide IMS with increased independence and bolster confidence in its future potential
IMS is a critical player in the semiconductor industry, enabling its growth and advancement in an era of increasingly demanding applications

Intel Corporation has announced that it will be selling a 10% stake in its IMS Nanofabrication business to TSMC, a move that values IMS at around $4.3 billion. This comes after a recent stake sale to Bain Capital Special Situations, which also valued IMS at the same amount. Despite the sale, Intel will still retain majority ownership of IMS, which will continue to operate as a standalone subsidiary under the leadership of CEO Dr. Elmar Platzgummer. The transaction is expected to be completed in the fourth quarter of 2023.

IMS is a leading player in multi-beam mask writing tools, which are crucial for the development of advanced extreme ultraviolet lithography (EUV). This technology is widely used in computing applications like artificial intelligence (AI) and mobile devices. The investments from Bain Capital and TSMC will provide IMS with increased independence and bolster confidence in its future potential. This newfound autonomy will enable IMS to accelerate its growth and drive innovation in lithography technology, particularly in the transition to new patterning systems like high-numerical-aperture (high-NA) EUV.

Matt Poirier, senior vice president of Corporate Development at Intel, expressed the significance of this investment, highlighting the collaborative efforts of IMS in advancing critical lithography technology for leading-edge nodes. He believes that IMS is well-positioned to capitalize on the substantial growth opportunity for multi-beam mask writing tools in the coming years.

Dr. Elmar Platzgummer also expressed his excitement about bringing in new investors to support IMS’ leadership in multi-beam mask writing, which plays a vital role in driving innovation in semiconductor technologies. He sees this as a testament to IMS’ expertise and leadership position in this integral technology and looks forward to continuing to support the development of next-generation technologies.

Dr. Kevin Zhang, senior vice president of Business Development at TSMC, emphasized the long-term partnership between TSMC and IMS, which dates back to 2012. He believes that this investment will further accelerate innovation and foster deeper collaboration across industries.

IMS is a critical player in the semiconductor industry, enabling its growth and advancement in an era of increasingly demanding applications. The global demand for semiconductors continues to rise, driven by the five superpowers of AI, pervasive connectivity, ubiquitous computing, cloud-to-edge infrastructure, and sensing. It is projected that the market will reach $1 trillion by 2030. Advances in lithography technology, particularly EUV, are crucial for enabling these demanding applications. IMS’ leadership in mask writing tools positions it at the forefront of innovation in the semiconductor ecosystem.

Intel’s initial investment in IMS dates back to 2009, and it acquired the remaining stakes in 2015. Since then, IMS has delivered significant returns on investment to Intel while expanding its workforce and production capacity fourfold and introducing three additional product generations. In June 2023, Intel announced its agreement to sell a 20% stake in IMS to Bain Capital.

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Background Information

About Intel:

Intel Corporation, a global technology leader, is for its semiconductor innovations that power computing and communication devices worldwide. As a pioneer in microprocessor technology, Intel has left an indelible mark on the evolution of computing with its processors that drive everything from PCs to data centers and beyond. With a history of advancements, Intel's relentless pursuit of innovation continues to shape the digital landscape, offering solutions that empower businesses and individuals to achieve new levels of productivity and connectivity.

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About TSMC:

TSMC, or Taiwan Semiconductor Manufacturing Company, is a semiconductor foundry based in Taiwan. Established in 1987, TSMC is a important player in the global semiconductor industry, specializing in the manufacturing of semiconductor wafers for a wide range of clients, including technology companies and chip designers. The company is known for its semiconductor fabrication processes and plays a critical role in advancing semiconductor technology worldwide.

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Technology Explained

EUV: Extreme Ultraviolet Lithography (EUV or EUVL) is an advanced semiconductor manufacturing technique that employs extremely short wavelengths of light in the extreme ultraviolet spectrum to create intricate patterns on silicon wafers. Utilizing a wavelength around 13.5 nanometers, significantly shorter than traditional lithography methods, EUVL enables the production of smaller and more densely packed integrated circuits, enhancing the performance and efficiency of modern microprocessors and memory chips.