This will create synergies between two and it will also reduce administrative costs. Applied Materials had experienced fall in revenues in 2012 and so may explain why they wanted to merge. It had total assets of $12.1 billion then. Other semi-conductor firms may also be looking to merge now to compete with them since it will be difficult to do so on their own.
I do not think Anyone other than ASML will provide the EUV system for the time being. There was some news about Nikon developing 6.5nm EUV systems but looking at the progress on 13.5nm EUV system from ASML i do not think many companies will even think about starting their own RnD in this.
Yeah, I get that, Peter. But "Merger of equals" in that sense -- dual headquarters, new name, etc. -- seems to be a tactic to soothing both companies' ego, more than anything else, and it may turn out to be the most efficient way to do a merger.
Not good for consumers, yes, but I believe that the article is right, saoring costs for new nodes makes consolidation an attractive proposition. It's the job of the regulators to stop this merger if they think it will harm consumers.
They might have a tax deal with Luxembourg (Benelux countries have some special arrangements between them) which allows companies to enjoy the political benefits of being headquartered in the Netherlands (a big EU country) while benefiting from Luxembourg's extremely low tax system. I am just speculating :-) but I am nearly sure it's to do with taxes. It does not have to be about the headline corporate tax rate, Governments can offer financial sweeteners in many many other ways....
any1, this will create more monopoly in the industry. I do not think that high development cost can really be a just reason as companies can collaborate on RnD. There are so many companies in semiconductor manufacturing that are working on similar model.
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