Intel Sells 10% Stake in IMS Nanofabrication to TSMC, Valuing IMS at $4.3 bn

Intel has announced an agreement to sell approximately 10 percent of its stake in IMS Nanofabrication to Taiwan Semiconductor Manufacturing Company (TSMC), marking a significant development in the semiconductor industry.
TSMC semiconductor supplierThis investment values IMS at approximately $4.3 billion, consistent with the recent stake sale to Bain Capital Special Situations. Intel will maintain majority ownership of IMS, which will continue to function as a standalone subsidiary under the leadership of CEO Dr. Elmar Platzgummer. The transaction is set to conclude in the fourth quarter of 2023.

IMS holds a prominent position in the industry as a leader in multi-beam mask writing tools, which are pivotal in the development of advanced extreme ultraviolet lithography (EUV). This technology is widely adopted in cutting-edge technology nodes, supporting highly demanding computing applications such as artificial intelligence (AI) and mobile devices. The investments by both Bain Capital and TSMC enhance IMS’s independence and bolster confidence in its potential, empowering IMS to expedite growth and spearhead innovation in lithography technology, particularly in facilitating the industry’s transition to new patterning systems like high-numerical-aperture (high-NA) EUV.

Matt Poirier, Senior Vice President of Corporate Development at Intel, underscored the significance of this investment, saying, “This investment demonstrates the deep industry collaboration IMS is pioneering to advance critical lithography technology for leading-edge nodes, which will benefit the entire semiconductor manufacturing ecosystem. With enhanced independence, IMS will be well positioned to address the significant growth opportunity for multi-beam mask writing tools over the next decade and beyond.”

Kevin Zhang, Senior Vice President of Business Development at TSMC, added, “TSMC has been working with IMS since 2012 on the development of multi-beam mask writers for advanced technology nodes. This investment continues the long-term partnership between TSMC and IMS to accelerate innovation and enable deeper cross-industry collaboration.”

IMS plays a pivotal role in facilitating the growth and advancement of the semiconductor industry in an era characterized by increasingly demanding applications. The global semiconductor demand continues to surge, driven by AI, pervasive connectivity, ubiquitous computing, cloud-to-edge infrastructure, and sensing technologies.

The market is expected to reach $1 trillion by 2030. The key to this growth lies in advancements in lithography technology, particularly EUV, which is indispensable for leading-edge nodes. These technological strides rely heavily on sophisticated mask writing tools, making IMS a central player in fostering innovation across the semiconductor ecosystem.

Intel initially invested in IMS in 2009 and later acquired the remaining stakes in 2015. Since the acquisition, IMS has delivered substantial returns to Intel while expanding its workforce and production capacity fourfold and introducing three additional product generations. In June 2023, Intel previously announced an agreement to sell approximately 20% of its stake in IMS to Bain Capital.