Samsung invests $975m in next-gen chip technology

Summary:The technology giant has joined a program with Intel and TSMC to further chip research and technology.

Samsung Electronics is going to invest 779 million euros ($975 million) in next-generation chip development.

Netherlands-based chip equipment maker ASML has created a co-investment program, of which Samsung has now joined. As well as investing funds in research, the technology giant is also going to buy a 3 percent equity stake.

samsung invests chip manufacture tech

Samsung will invest 276 million euros ($345 million) in research over the next five years, and pay a further 503 million euros ($630 million) for the equity stake.

The 'Customer Co-Investment Program' has already seen Intel and TSMC join in recent weeks. Both companies have invested in order to fast track chip development.

Intel said in July it plans to buy 15 percent of ASML for over $4 billion. Soon after, TSMC joined the firm, agreeing to purchase a 5 percent stake for 838 million euros ($1.05 billion) and invest 276 million euros ($345 million) over the next five years in the company's research.

ASML's program aims to tie in customers and speed up the development of new lithography techniques -- including what is known as extreme ultraviolet -- which will eventually lead to cheaper gadgets, including smartphones and tablets.

The company also wants to shift to a new chip-making standard which uses a bigger production wafer. If the diameter is increased, then more chips can be produced more cheaply.

Now that Samsung has joined Intel and TSMC, the project's funding aim of 1.38 billion euros has now been met, and the firm does not intend to try and secure additional customers.

In total, Intel, TSMC and Samsung will account for a 23 percent minority stake worth 3.85 billion euros ($4.81 billion) in cash.

Topics: Hardware, Samsung

About

Charlie Osborne, a medical anthropologist who studied at the University of Kent, UK, is a journalist, freelance photographer and former teacher. She has spent years travelling and working across Europe and the Middle East as a teacher, and has been involved in the running of businesses ranging from media and events to B2B sales. Charli... Full Bio

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