Semiconductor Manufacturing International Corporation, the largest and most advanced pure-play foundry provider in China, and ASML Holding N.V., a provider of lithography systems, announce the signing of a volume purchase agreement (VPA) that will provide SMIC with lithography systems from ASML. The VPA which is worth approximately 450 million Euros and is part of a strategic partnership between the companies that will help facilitate the timely expansion of SMIC’s advanced technology capacities.

Lithography is a critical step in the manufacturing of semiconductors and helps to create complex structures that make up the transistors on a wafer. Under the agreement ASML will provide lithography tools such as the TWINSCAN NXT system designed for volume production of 300mm wafers at the 32nm node and beyond. Some of the specific benefits include increased productivity, unprecedented overlay performance and maximum image performance for each wafer.

“We chose ASML as our provider due to their world-class products and services, and this cooperation will facilitate and strengthen the development of our advanced technologies,” said Dr. Tzu-Yin Chiu, Chief Executive Officer and Executive Director of SMIC.

Lilianne Ploumen, the Dutch Minister for Foreign Trade and Development Cooperation, accompanied by members of the Dutch Consulate, attended the signing ceremony as part of an economic mission to strengthen economic ties between the Netherlands and China.

At the ceremony, Minister Ploumen said, “China is an important market that continues to grow. The signing ceremony between SMIC and ASML marks the increasing high-tech cooperation between China and the Netherlands, and I sincerely hope that this continues to develop further.”