Intel buys stake in ASM International

Intel Capital has acquired a four per cent stake in ASM International

Intel's investment arm has acquired a four per cent stake in ASM International (ASMI), a Dutch semiconductor manufacturing business with which it has a supplier relationship.

ASMI posted a net loss in the first quarter of 2009 of €23.3m (£20.6m), compared to net earnings of €12.6m (£11.2m) in the first quarter of 2008, representing a 41 per cent drop.

"ASMI has been at the forefront of delivering materials and equipment innovation to integrated circuit manufacturers worldwide," said Intel in a statement.

"Its advanced technologies, which meet key International Technology Roadmap for Semiconductors criteria, are important to extending Moore's law."

The investment will be used to support future Intel plans, according to Arvind Sodhani, president of Intel Capital.

"Equipment and materials innovation is critical to enabling new capabilities in semiconductor device manufacturing," he said.

"Our investment in ASMI is part of Intel Capital's strategy to foster innovation that aligns with Intel's manufacturing technology roadmap."

It's not just ASMI that been struggling, with analyst reports showing that the entire semiconductor industry was hit particularly hard by the credit crunch last year.