Moody's: Intel, ASML plan is positive

Moody's Investors Service said that Intel Corp. and ASML Holding NV's July 9 announced plans for Intel to invest $3.1 billion for a 15% equity stake in ASML and an additional $1 billion over five years to help ASML fund research and development for next-generation 450 millimeter wafer and extreme ultraviolet lithography tools is credit positive "because it helps to ensure manufacturing technology leadership and allows Intel to use its significant overseas cash," Moody's senior vice president Richard Lane said in a news release.

The agreement "reflects the rising capital intensity at leading edge semiconductor manufacturing and semiconductor equipment companies' reluctance to fund all of the research and development requirements for millimeter wafer development," Lane added in the release.

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