On Tuesday, semiconductor equipment company ASML Holding (NASDAQ:ASML) and imec announced a new strategic partnership deal focusing on research and sustainability.

The ASML investment in the partnership is complemented by funding made available by the Chips Joint Undertaking, the Flemish government, and the Dutch government.

The five-year deal aims to develop solutions that advance the semiconductor industry and develop initiatives focused on sustainable innovation.

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The collaboration incorporates ASML's whole product portfolio, focusing on developing high-end nodes using ASML systems, including 0.55 NA EUV, 0.33 NA EUV, DUV immersion, YieldStar optical metrology, and HMI single- and multi-beam technologies.

These tools will be installed in imec's state-of-the-art pilot line and incorporated in the EU- and Flemish-funded NanoIC pilot line, providing the most advanced infrastructure for sub-2nm R&D to the international semiconductor ecosystem.

R&D focus areas will also include silicon photonics, memory, and advanced packaging, offering full-stack innovation for future semiconductor-based AI applications in diverse markets. 

imec CEO Luc Van den hove expects the inclusion of ASML's full product portfolio to help it expand and further mature the capabilities of its pilot line. This will provide the entire semiconductor ecosystem with the most advanced R&D to tackle the challenges of AI-driven technological advancements.

Last week, ASML disclosed in its annual report that the U.S. semiconductor sanctions on China hurt 2024 demand, with China making up 36% of its sales. ASML customers slashed capital spending amid U.S. chip restrictions, impacting AI and semiconductor growth. Additionally, reports indicated President Donald Trump's plans to scrap the U.S. CHIPS Act.

According to SEMI, China, Taiwan, and Korea will remain the key destinations for equipment spending through 2026. 

Price Action: ASML stock is up 0.81% at $689.32 at last check Tuesday.

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Photo via ASML

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This article ASML Boosts AI Chip R&D In Europe Amid US Sanctions, China Slowdown, And Subsidy Uncertainty originally appeared on Benzinga.com

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