ASML Holding NV (NASDAQ: ASML) has commenced the shipment of critical components for its newest chipmaking machine to Intel Corp (NASDAQ: INTC).
ASML delivered the high-NA extreme ultraviolet (EUV) advanced system to Intel's D1X factory in Oregon.
Intel and ASML, crucial players in the semiconductor industry, have kept the system's destination private.
Intel CEO Pat Gelsinger had previously assured that Intel would be the first to receive this innovative machine, indicating his determination to place Intel at the forefront of manufacturing technology.
ASML, on its part, is introducing this novel technology to maintain the chip industry's reliance on its equipment, Bloomberg reports.
ASML, recognized as the leading producer of lithography systems vital for semiconductor manufacturing, is the sole manufacturer of extreme ultraviolet lithography machines. These machines serve major industry players like Taiwan Semiconductor Manufacturing Co (NYSE: TSM), Samsung Electronics Co (OTC: SSNLF), and Intel for advanced chip fabrication.
ASML expressed pride in shipping its first high-NA EUV system to Intel. The initial model of this machine, the Twinscan EXE:5200, is priced at approximately €250 million ($275 million), as analysts at Oddo BHF noted.
A more productive second-generation model, the EXE:5200B, is expected to cost over €350 million versus the current price of about $180 million for ASML's top-end machines.
Intel plans to start production using this system in 2025, as per a statement from ASML last year, with the D1X facility serving as a development and perfection center for Intel's future production techniques.
Price Action: ASML shares closed higher by 3.52% at $755.27 on Thursday.