Intel Readies R7billion Chipmaking Beast Seen As Key To Its Turnaround

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Intel said on Thursday it had become the first company to assemble one of Dutch tech group ASMLs new High NA EUV lithography tools, an important part of the US computer chip makers drive to outshine rivals.

Intel was the first company to buy one of the �350-million euro (R7.1-billion) machines made by top chip equipment supplier ASML . The tools are expected to lead to new generations of smaller, faster chips, though there are financial and engineering risks involved.

We agreed to the pricing when we committed to the tools and we would not have done that if we were not confident there were cost-effective uses for it, Intels director of lithography, Mark Phillips, said in a briefing with journalists.

ASML, Europes largest tech firm, dominates the market for lithography systems, machines that use beams of light to help create the circuitry of chips.

Lithography is one of many technologies chip makers use to improve chips, but it is a limiting factor in how small the features on a chip can be smaller means faster and more energy efficient.

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The High NA tools are expected to help shrink chip designs by up to two-thirds, but chip makers must weigh that benefit against a higher cost and whether older tech may be more reliable and good enough.

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The US company has now adopted first-generation EUV for the most crucial parts of its best chips, and Phillips said it expects the move to High NA EUV will be smoother.

Now that we have EUV, were looking forward, we dont want to get in the same boat where we have to push (ASMLs first-generation EUV machines) too far, he said.

Phillips said the machine at its Hillsboro, Oregon campus will be fully up and running later this year.

Intel Readies R7-billion Chip-making Beast Seen As Key To Its Turnaround