Veldhoven, The Netherlands–Oct. 2, 2000–ASM Lithography Holding N.V. (ASML) and Silicon Valley Group (SVG) have signed a merger agreement that creates the world’s largest provider of photolithography equipment to the semiconductor industry. Under the terms of the merger, ASML will acquire SVG in an all-stock transaction valued at approximately US$1.6 billion (EUR 1.8 billion).

By combining SVG’s speed to market in new advanced technologies and ASML’s ability to introduce and ramp up production of best-in-class volume production tools, the new entity will be even better enabled to deliver the most advanced semiconductor technology to the greatest number of customers, according to ASML.

The lithography equipment sector is growing at a compound annual growth rate of 30% and is expected to reach US$7.7 billion (EUR 8.7 billion) by 2001.

ASML, headquartered in Veldhoven, The Netherlands, develops, manufactures, and services lithography systems known as wafer steppers and step-and-scan systems.

SVG, headquartered in San Jose, California is a leading supplier of wafer processing equipment for the worldwide semiconductor industry. The company designs, manufactures, and markets equipment used in the primary stages of semiconductor manufacturing. SVG’s products include photoresist processing equipment; oxidation, diffusion, atmospheric and low-pressure chemical vapor deposition processing systems; photolithography exposure tools that use step-and-scan technology; and precision optical components and systems.