October 16, 2007 – Intel Capital, the chipmaking giant’s global VC arm, has invested $11 million in Jordan Valley Semiconductors to obtain what the companies describe as “a significant stake” in the provider of x-ray-based thin-film metrology tools.
The deal gives Jordan Valley more resources to accelerate technology and product development, noted company CEO Isaac Mazor, in a statement. “Working with Intel Capital significantly increases our profile in the industry and enables us to take full advantage of existing and new growth opportunities. From our perspective, this can only help to further expand our leadership position in the market.”
For Intel Capital, the deal offers an opportunity to tap into the field of x-ray metrology, which has “reached an inflection point for broad industry adoption,” according to Heiko von Dewitz, investment director of Intel Capital in charge of Intel Capital’s semiconductor investments in Europe and Israel.
Jordan Valley execs wouldn’t provide many details about the structure of the deal, except that the stake obtained by Intel is distributed among the company’s current owners — Clal (~44%), Elron (~28%), and founders/others (28%). Elron indicated in a statement that its stake is now 21%; the rest of the ownership distribution has not been disclosed.
In an e-mail exchange with WaferNEWS, Jordan Valley CEO Itzak Mazor indicated that “at this time you may call [the infusion from Intel] mostly financing,” but also a strategic investment,” indicating that the two may work more closely on development work on x-ray metrology.