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.



Google Holds Illegal Monopolies in Ad Tech, US Judge Finds, Allowing US to Seek Breakup

A man walks past Google's offices in London's Kings Cross area, on Aug. 10, 2024. (AP)
A man walks past Google's offices in London's Kings Cross area, on Aug. 10, 2024. (AP)
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Google Holds Illegal Monopolies in Ad Tech, US Judge Finds, Allowing US to Seek Breakup

A man walks past Google's offices in London's Kings Cross area, on Aug. 10, 2024. (AP)
A man walks past Google's offices in London's Kings Cross area, on Aug. 10, 2024. (AP)

Alphabet's Google illegally dominated two markets for online advertising technology, a judge ruled on Thursday, dealing another blow to the tech giant and paving the way for US antitrust prosecutors to seek a breakup of its advertising products.

US District Judge Leonie Brinkema in Alexandria, Virginia, found Google liable for "willfully acquiring and maintaining monopoly power" in markets for publisher ad servers and the market for ad exchanges which sit between buyers and sellers. Publisher ad servers are platforms used by websites to store and manage their ad inventory.

Antitrust enforcers failed to prove a separate claim that the company had a monopoly in advertiser ad networks, she wrote.

Lee-Anne Mulholland, vice president of Regulatory Affairs, said Google will appeal the ruling.

"We won half of this case and we will appeal the other half," she said, adding that the company disagrees with the decision on its publisher tools. "Publishers have many options and they choose Google because our ad tech tools are simple, affordable and effective."

Google's shares were down around 2.1% at midday.

The decision clears the way for another hearing to determine what Google must do to restore competition in those markets, such as sell off parts of its business at another trial that has yet to be scheduled.

The DOJ has said that Google should have to sell off at least its Google Ad Manager, which includes the company's publisher ad server and ad exchange.

Google now faces the possibility of two US courts ordering it to sell assets or change its business practices. A judge in Washington will hold a trial next week on the DOJ's request to make Google sell its Chrome browser and take other measures to end its dominance in online search.

Google has previously explored selling off its ad exchange to appease European antitrust regulators, Reuters reported in September.

Brinkema oversaw a three-week trial last year on claims brought by the DOJ and a coalition of states.

Google used classic monopoly-building tactics of eliminating competitors through acquisitions, locking customers in to using its products, and controlling how transactions occurred in the online ad market, prosecutors said at trial.

Google argued the case focused on the past, when the company was still working on making its tools able to connect to competitors' products. Prosecutors also ignored competition from technology companies including Amazon.com and Comcast as digital ad spending shifted to apps and streaming video, Google's lawyer said.