The Taiwanese chip giant TSMC is to buy a 5% stake in Dutch chip machinery maker ASML, the two companies announced on Sunday.

TSMC will pay €838m for the 5% stake, and invest €276m in ASML’s development programme.
This follows a €4.1bn investment in ASML by Intel in July.
The Dutch company was looking to sell up to 25% of its equity and said it has now sold 20%. Talks are continuing with other interested parties on the remaining 5%.
ASML is developing the next generation of ultraviolet light machines and analysts say getting customers such as TSMC to help foot the bill is a coup for the Veldhoven company.