Intel Corporation, a leading chipmaker, announced on Tuesday a groundbreaking agreement to sell a 10% stake of its IMS Nanofabrication business to Taiwan Semiconductor Manufacturing Co (TSMC) for approximately $4.3 billion. The deal, set to be finalized by the fourth quarter of this year, reinforces Intel’s majority control over the company.
Intel’s acquisition of IMS Nanofabrication in 2015 positioned it as the exclusive manufacturer of a crucial chip component known as the mask, essential for ultra-violet lithography tools. Elmar Platzgummer, CEO of IMS, emphasized the significance of the mask solution amid the industry’s shift towards EUV equipment, noting that IMS was the sole provider of this vital technology.
Earlier this year, Intel also sold a 20% stake in IMS to Bain Capital, diversifying its portfolio of strategic partners. Matt Poirier, Intel’s Vice President of Corporate Development, highlighted the TSMC investment as a testament to the semiconductor manufacturing industry’s enthusiasm for the immense potential within IMS. This move is poised to further Intel’s expansion in its contract manufacturing business, known as Intel Foundry Services.
The collaboration between TSMC and IMS dates back to 2011, with TSMC relying heavily on IMS technology. Intel’s decision to deepen its ties with TSMC is aimed at fostering a mutually beneficial relationship, positioning both companies to assert a leadership role in the chipmaking sector.
The $4.3 billion deal between Intel and TSMC underscores Intel’s recognition of the intrinsic value of IMS nanofabrication and the substantial benefits that can be derived from this strategic partnership. As the semiconductor landscape continues to evolve, this move is poised to have a far-reaching impact on the industry’s competitive dynamics.