The relationship between Intel Corporation and ASML Holding NV represents one of the most consequential partnerships in the semiconductor industry’s history. Over the past decade, Intel’s equity position in ASML has shifted dramatically, reflecting broader technological and strategic priorities. This report synthesizes the trajectory of Intel’s stake in ASML, analyzing its origins, reductions, and implications for both companies’ futures.

In July 2012, Intel announced a landmark agreement with ASML, committing €3.3 billion (approximately $4.1 billion) to accelerate the development of next-generation lithography technologies: 450mm wafer manufacturing and extreme ultraviolet (EUV) lithography. The deal comprised two components:

• R&D Funding: €553 million ($680 million) for 450mm wafer tools and €276 million ($340 million) for EUV development.
• Equity Investment: An initial purchase of 10% of ASML’s shares for €1.7 billion ($2.1 billion), with an option to acquire an additional 5% post-transaction.

This investment aimed to shorten the deployment timeline for these technologies by up to two years, reducing production costs and enhancing semiconductor scaling capabilities. By 2012’s end, Intel held 15% of ASML’s shares, joining Samsung (3%) and TSMC (5%) as strategic investors.

Phase 1: Initial Divestments (2017–2018)

Intel began reducing its ASML stake in late 2017, lowering its ownership from 15% to 7.6%. By October 2018, filings revealed Intel’s stake had fallen below 3%. This divestment coincided with ASML’s growing financial independence, as EUV lithography moved from experimental to commercial viability, driving revenue from €1.8 billion in 2017 to €2.8 billion by Q4 2024.

Phase 2: Post-2020 Rationale

By 2025, Intel’s stake stabilized below 3%, reflecting a strategic pivot toward direct procurement of ASML’s tools rather than equity-based collaboration. This shift aligned with Intel’s IDM 2.0 strategy under CEO Pat Gelsinger, prioritizing internal process leadership. ASML’s valuation surged from €40 billion in 2012 to €338 billion by 2024, reducing the necessity of Intel’s equity ties.

Intel’s Early Adoption of High-NA

In January 2022, Intel purchased the first TWINSCAN EXE:5200 High-NA EUV system, designed for volume production by 2025. High-NA (0.55 numerical aperture) enables 1.7x smaller feature sizes and 2.9x density improvements, crucial for Intel’s 18A and 14A nodes. Early testing indicated the EXE:5200 delivered twice the reliability of prior EUV tools, with Intel producing 30,000 wafers per quarter during calibration.

Technical and Strategic Implications

Intel’s head start in High-NA EUV aims to close the process gap with TSMC, especially for advanced AI and GPU markets. TSMC’s continued reliance on multi-patterning techniques for its N2 node could provide Intel an opportunity to re-establish leadership by 2030, contingent on yield rates and design tool maturity.

ROI on the 2012 Investment

Intel’s initial €2.5 billion stake realized a 17x return by 2023, driven by ASML’s stock appreciation from €40 to over €700. Although Intel significantly reduced its position, the remaining holdings—valued at around $2.1 billion in 2025—still represent a notable financial asset.

Competitive Pressures

TSMC’s early EUV adoption, backed by Apple’s $1 billion infusion in 2017, briefly gave it a process edge. However, Intel’s High-NA focus is designed to reclaim leadership. Analysts point to TSMC’s caution in adopting High-NA for large dies (critical for AI chips) as a strategic opening for Intel in data center and GPU markets.

• Capital Reallocation: Funds diverted to fab construction and R&D for IDM 2.0, including Ohio and Arizona facilities.
• ASML’s Independence: By 2024, ASML no longer needed customer equity to fund R&D, dominating EUV with a 100% market share.
• Geopolitical Considerations: Heightened U.S.-China tensions made ASML’s Dutch ownership less strategically aligned with Intel’s supply chain goals.

Intel’s partnership with ASML now hinges on co-developing High-NA EUV and next-generation lithography. Their roadmap through 2025 includes combining High-NA with advanced packaging to drive 3D chiplet architectures, as well as sustainability measures aiming to reduce energy consumption per wafer by 20%. While TSMC and Samsung focus on refining existing EUV platforms, Intel’s early High-NA strategy could reshape competitive dynamics if yield issues are resolved.

Intel’s evolving stake in ASML, from a strategic lifeline for EUV development to a diminished holding under IDM 2.0, underscores how equity alliances, technological risk, and Moore’s Law constraints shape the semiconductor landscape. While Intel no longer holds a significant percentage of ASML, their collaborative focus on High-NA EUV could rewrite the rules of process leadership. As the semiconductor industry adapts to new lithography frontiers and geopolitical pressures, the Intel-ASML saga stands as a testament to the power of partnership and innovation in driving technological progress.