AMSL signs up TSMC  to fund R&D -

Chip equipment maker AMSL has signed up TSMC to bankroll its research and development.

The company is a little worried that the next-generation chip-making kit to make micro chips smaller and cheaper, will cost a bomb.

According to ReutersASML's chief executive Eric Meurice has told Intel, TSMC, and Samsung that they will have to help fund its costly R&D and invest in up to 25 percent of its shares or else the gear to make the new chips will not be made.

TSMC agreed to invest 276 million euro in research over the coming five years and will also take a 5 percent equity stake in ASML which is valued at 838 million euros.

The Dutch chip making gear outfit made a similar deal with Chipzilla and expects to reach agreements with Samsung next.

The research is being carried out to accelerate the development of its "extreme ultraviolet" or EUV lithography technology and 450-millimeter lithography tools.

It will make sure that ASML has the cash to stay ahead of the competition and could also make its chip making gear cheaper.

ASML announced its first customer deal with Intel in July and Chipzilla said that the deal would speed up the adoption of the next generation of chip manufacturing processes from ASML by as much as two years.