Intel sells stake in IMS Nanofabrication to TSMC for $430M

Intel has agreed to promote a ten% stake in IMS Nanofabrication to TSMC for $430 million at a valuation of $4.3 billion.

Intel will retain majority possession of IMS, which is able to proceed to function as a standalone subsidiary underneath the management of CEO Elmar Platzgummer. The transaction is predicted to shut within the fourth quarter of 2023.

The deal comes simply weeks after Intel agreed to promote 20% of its stake in IMS Nanofabrication to Bain Capital for $860 million, on the identical $4.3 billion valuation.

Intel’s earlier deal to promote IMS Nanofabrication GmbH (IMS) to Bain Capital Particular Conditions is predicted to shut within the third quarter of 2023. IMS, a Vienna-based firm, will proceed to function as a standalone subsidiary underneath the management of Platzgummer.

The corporate performs an essential function in chip manufacturing. IMS has been a outstanding participant in multi-beam masks writing for superior expertise nodes since inventing multi e-beam expertise and introducing the primary industrial multi-beam masks author in 2015. Masks are the templates used to fabricate semiconductor chips with the best particulars of digital circuitry.

In an interview with VentureBeat, Platzgummer mentioned IMS performs a essential function in enabling the expansion and development of the semiconductor {industry} in an period of ever extra demanding functions. International semiconductor demand continues to develop fueled by 5 superpowers: AI, pervasive connectivity, ubiquitous computing, cloud-to-edge infrastructure and sensing. The market is predicted to achieve $1 trillion by 2030.

Kevin Zhang, senior vice chairman of enterprise improvement at TSMC, mentioned in a press release, “TSMC has been working with IMS since 2012 on the event of multi-beam masks writers for superior expertise nodes. This funding continues the long-term partnership between TSMC and IMS to speed up innovation and allow deeper cross-industry collaboration.”

Intel initially invested in IMS in 2009 and purchased the enterprise in 2015. Beneath Intel’s possession, IMS skilled substantial progress, quadrupling its workforce and manufacturing capability whereas delivering three extra product generations.

Matt Poirier, senior vice chairman of company improvement at Intel, mentioned in a press release, “This funding
demonstrates the deep {industry} collaboration IMS is pioneering to advance essential lithography expertise for modern nodes, which is able to profit the complete semiconductor manufacturing ecosystem. With enhanced independence, IMS will probably be effectively positioned to handle the numerous progress
alternative for multi-beam masks writing instruments over the following decade and past.”

As excessive ultraviolet lithography (EUV) expertise turns into extra prevalent in modern semiconductor manufacturing, the demand for multi-beam masks writing instruments, essential elements in creating superior EUV masks, is growing.

A key enabler of this progress is advances in lithography expertise, reminiscent of EUV, which is crucial for the modern nodes that allow these demanding functions. These lithographic advances depend on subtle masks writing instruments, which makes IMS’ management expertise central to innovation throughout the ecosystem. It’s like making a sharper and sharper pencil to write down thinner traces for the circuitry as chip makers and designers jam increasingly more element into the same-size chips.

Just like the Bain deal, this funding positions IMS to capitalize on the numerous market alternative for multi-beam masks writing instruments by driving innovation and fostering cross-industry collaboration. It additionally retains the {industry} on the trail of Moore’s Legislation, which predicts that the chip {industry} will double the variety of transistors in a chip each couple of years.

“We’re going to stay the bulk proprietor and IMS will proceed to have the enterprise function as a standalone subsidiary underneath the management of the CEO, Dr. Platzgummer, and the transaction is predicted to shut within the fourth quarter of this yr 2023. And we predict that finally, the Bain and TSMC investments present IMS with elevated independence and reinforce confidence and a major alternative forward for the corporate,” Poirier mentioned in an interview with VentureBeat. “And the extra autonomy we predict will assist IMS speed up its progress and drive the following part of lithography expertise innovation to allow the {industry}’s transition into new patterning techniques, reminiscent of excessive numerical aperture, what we name excessive NA and EUV. And the funding by TSMC demonstrates, we predict, the thrill throughout the semiconductor manufacturing ecosystem for the numerous alternative forward for IMS, and positively acknowledge the advantages of deeper {industry} collaboration for the ecosystem as an entire.”

Platzgummer believes the potential of IMS as EUV expertise turns into extra pervasive and high-NA EUV strikes into high-volume manufacturing within the coming years.

Collectively, Bain Capital and TSMC’s investments present IMS with elevated independence and reinforce
confidence within the important alternative forward of IMS. This added autonomy will assist IMS speed up its
progress and drive the following part of lithography expertise innovation to allow the {industry}’s transition
into new patterning techniques, reminiscent of high-numerical-aperture (high-NA) EUV.

Platzgummer mentioned in a press release, “We’re delighted to usher in new traders to assist us construct on IMS’ management in multi-beam masks writing, which is the spine of innovation in modern semiconductor applied sciences. This can be a testomony to IMS’ experience and management place on this integral expertise. Along with our companions, we sit up for persevering with to help innovation of next-generation applied sciences and ship worth throughout the semiconductor ecosystem.”

The sale of the stake in IMS Nanofabrication marks a major transfer for Intel because it focuses on strategic partnerships and investments to drive progress and worth creation within the quickly evolving semiconductor panorama.

“We’re established within the chief within the so known as multi-beam mask-making tools,” Platzgummer mentioned in an interview. “This sort of tools is required to develop superior excessive lithography, so known as EUV. One other technology is coming.”

And that technology requires the tools that IMS makes.

As for provide chain safety, Poirier mentioned that the corporate already has a set of consumers which can be world in nature already, and a key buyer in TSMC is becoming a member of Intel within the possession ranks. He famous IMS is a essential provider to TSMC and the businesses are strategically aligned. The ecosystem as an entire will profit, he mentioned.

“It’s very constructive to have TSMC nearer at IMS,” mentioned Platzgummer. “It will strengthen our place and in addition our progress sooner or later.”