Intel to sell 20% stake in Austrian chip company

INTEL said on Wednesday (Jun 21) it would sell one-fifth of its stake in IMS Nanofabrication to private equity firm Bain Capital in a deal valuing the Austrian producer of chipmaking tools at about US$4.3 billion.

Intel’s stake sale of 20 per cent was valued at US$860 million, according to Reuters calculations.

IMS, which was acquired by Intel in 2015, makes equipment that are critical for companies that make chips.

It has delivered a significant return on investment to Intel while growing its workforce and production capacity by four times, Intel said.

Bain Capital’s investment in IMS will put it in a position to capture significant market share for its tools that are being widely adopted by chipmakers, Intel said. REUTERS