VELDHOVEN, the Netherlands -- ASM Lithography Holding N.V. today confirmed that its planned purchase of Silicon Valley Group Inc. has been slowed by concerns in the U.S. over national security and defense-related photolithography technologies owned by SVG.
"We are obviously disappointed by this brief delay but pledge to work closely and cooperatively with the U.S. government in its review," said Doug Dunn, chief executive officer of ASML. "We are optimistic that upon completion of this review, we will be in a position to close this merger promptly."
ASML announced last fall an agreement to acquire San Jose-based SVG for $1.6 billion in stock in a move to become the world's largest supplier of lithographhy tools for semiconductor production (see Oct. 2 story). Early on, industry observers began to speculate that the purchase would be politically sensitive in the U.S. because of SVG's advanced step-and-scan exposure tools, government funding to help develop scanner technologies, and the company's position as the only major domestic supplier of advanced lithography tools for volume production.
AMSL had hoped to complete its acquisition of SVG in the first quarter, but it began to face delays early this year. In January, the company announced it was refiling its petition for U.S. review of the SVG purchase as required by federal law when acquisitions involve foreign companies and technologies crucial for defense systems (see Jan. 8 story).
Late Wednesday night, ASML confirmed reports that Congress' Committee on Foreign Investment in the U.S. had notified the companies that it will conduct a 45-day review under the Exon-Florio review process because of the potential national security concerns.
