Intel Orders ASML Machine Still on Drawing Board as Chipmakers Look For an Edge

The Intel Corporation logo is seen on a display in a store in Manhattan, New York City, November 24, 2021. (Reuters)
The Intel Corporation logo is seen on a display in a store in Manhattan, New York City, November 24, 2021. (Reuters)
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Intel Orders ASML Machine Still on Drawing Board as Chipmakers Look For an Edge

The Intel Corporation logo is seen on a display in a store in Manhattan, New York City, November 24, 2021. (Reuters)
The Intel Corporation logo is seen on a display in a store in Manhattan, New York City, November 24, 2021. (Reuters)

Intel has placed the first order with ASML for an advanced chipmaking machine that is still on the drawing board and won't be delivered for years, as semiconductor manufacturers look to get ahead in a booming industry.

Alongside better-than-expected fourth quarter earnings, ASML said on Wednesday it had now received orders for five of its next generation of lithography machines, plus an order for the even newer model that is still being designed.

In a separate joint press release, the companies said Intel was the buyer.

ASML's most advanced commercial machines, known as EUV lithography systems because of the "Extreme Ultraviolet" light waves they use to map out the circuitry of computer chips, are the size of a bus and cost around $150 million each.

A cutting-edge chip plant needs 9-18 of them, making them one of chipmakers' biggest capital expenditure costs.

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 had now received orders for five of the next iteration of the system, known as "High NA" EUV machines, which will have a different lens system with a higher numerical aperture, will be even larger and cost around $300 million each.

The first prototypes are to be shipped in 2023. They are not expected to be used in volume manufacturing until 2025.

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 High NA machine, ASML's EXE:5000, which is expected to help manufacturers shrink chip sizes later this decade.

Intel said on Wednesday it would buy the first EXE:5200 as well, which is expected to make several improvements including higher productivity. Neither company mentioned the price tag.



Meta Becomes the Latest Big Tech Company Turning to Nuclear Power for AI Needs

The Meta logo marks the entrance of their corporate headquarters in Menlo Park, California on November 9, 2022. (AFP)
The Meta logo marks the entrance of their corporate headquarters in Menlo Park, California on November 9, 2022. (AFP)
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Meta Becomes the Latest Big Tech Company Turning to Nuclear Power for AI Needs

The Meta logo marks the entrance of their corporate headquarters in Menlo Park, California on November 9, 2022. (AFP)
The Meta logo marks the entrance of their corporate headquarters in Menlo Park, California on November 9, 2022. (AFP)

Meta has cut a 20-year deal to secure nuclear power to help meet surging demand for artificial intelligence and other computing needs at Facebook’s parent company.

The investment with Meta will also expand the output of a Constellation Energy Illinois nuclear plant.

The agreement announced Tuesday is just the latest in a string of tech-nuclear partnerships as the use of AI expands. Financial details of the agreement were not disclosed.

Constellation's Clinton Clean Energy Center was actually slated to close in 2017 after years of financial losses but was saved by legislation in Illinois establishing a zero-emission credit program to support the plant into 2027. The agreement deal takes effect in June of 2027, when the state's taxpayer funded zero-emission credit program expires.

With the arrival of Meta, Clinton’s clean energy output will expand by 30 megawatts, preserve 1,100 local jobs and bring in $13.5 million in annual tax revenue, according to the companies.

“Securing clean, reliable energy is necessary to continue advancing our AI ambitions,” said Urvi Parekh, Meta’s head of global energy.

Surging investments in small nuclear reactors comes at a time when large tech companies are facing two major demands: a need to increase their energy supply for AI and data centers, among other needs, while also trying to meet their long-term goals to significantly cut greenhouse gas emissions. Those emissions are generated, in large part, from the burning of fossil fuels like gasoline, oil and coal. Nuclear energy, while producing waste, does not emit carbon dioxide or other greenhouse gases.

Constellation, the owner of the shuttered Three Mile Island nuclear power plant, said in September that it planned to restart the reactor so tech giant Microsoft could secure power to supply its data centers. Three Mile Island, located on the Susquehanna River just outside Harrisburg, Pennsylvania, was the site of the nation’s worst commercial nuclear power accident in 1979.

Also last fall, Amazon said it was investing in small nuclear reactors, two days after a similar announcement by Google. Additionally, Google announced last month that it was investing in three advanced nuclear energy projects with Elementl Power.

US states have been positioning themselves to meet the tech industry’s power needs as policymakers consider expanding subsidies and gutting regulatory obstacles.

Last year, 25 states passed legislation to support advanced nuclear energy, and lawmakers this year have introduced over 200 bills supportive of nuclear energy, according to the trade association Nuclear Energy Institute.

Advanced reactor designs from competing firms are filling up the federal government’s regulatory pipeline as the industry touts them as a reliable, climate-friendly way to meet electricity demands from tech giants desperate to power their fast-growing artificial intelligence platforms.

Amazon, Google and Microsoft also have been investing in solar and wind technologies, which make electricity without producing greenhouse gas emissions.

Shares of Constellation Energy Corp., based in Baltimore, were flat Tuesday.