Intel’s Stake in ASML Drops Again


Oct. 24 2018, Updated 1:02 p.m. ET

ASML builds chipmaking machines

Intel (INTC) continues to reduce its exposure to ASML Holding, a Dutch company that supplies machines used in the chipmaking process. According to a Reuters report citing the Netherlands’ Authority for Financial Markets, Intel has cut its equity holdings in ASML to less than 3.0%.

Intel and other chipmakers took stakes in ASML six years ago to help support the development of ASML’s advanced chip production machines. However, Intel and other backers of ASML have been selling their holdings in the company. This trend appears to indicate that the investment program to help speed up the adoption of ASML’s advanced machines is winding down. Samsung (SSNLF) is another company that has reduced its holdings in ASML.

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Intel reported a loss from equity investments

Intel invested more than $4.0 billion in ASML for an ~15.0% stake in the business. However, its stake fell below 5.0% at the end of 2017.

Intel booked a $203.0 million loss from equity investments in the second quarter. It earned a $342.0 million profit from such investments in the second quarter of 2017. Intel’s companywide profit was $5.0 billion in the second quarter on revenues of $17.0 billion.

Qualcomm (QCOM), Broadcom (AVGO), and Advanced Micro Devices (AMD) reported profits of $1.2 billion, $1.2 billion, and $116.0 million, respectively, in the second quarter. IBM (IBM) posted a second-quarter profit of $2.4 billion.

Intel supplying iPhone chips

Selling processor chips used in data centers, personal computers, and a wide range of other devices is Intel’s central business. The company won a contract to supply the modem chips used in Apple’s (AAPL) latest iPhones. That contract came at the expense of Qualcomm, which had been a prominent supplier of mobile chips for Apple.


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