WASHINGTON -- Intel Corp. and all the board members of the U.S.-based Semiconductor Industry Association "are unanimous in support of the acquisition" of ASM Lithography's pending acquisition of Silicon Valley Group Inc., according to Craig Barrett, president and CEO of Intel.

ASML's $1.6 billion acquisition of San Jose-based SVG has become tied up in a U.S. review of the pending purchase to address national security concerns over foreign ownership of U.S. lithography technology (see March 8 story). ASML official in the Netherlands last week said they remained optimistic about the merger despite delays in U.S. hearings and reviews over the acquisition.

Intel's Barrett said he hoped the U.S. government would approve the acquisition because it was in the best interest of the country. ASML's purchase would assure that SVGL "remains a viable and strong lithography supplier," said Barrett, who was in Washington for press conference to announced an expansion of the SIA's Focus Center research program. "ASML has promised that SVGL research and development and production would remain in the U.S.," he added

Under Congressional pressure, a little known U.S. Treasury Department agency, called the Committee on Foreign Investment in the U.S. (CFIUS), is reviewing the purchase of SVG by the Dutch lithography giant. Congressional opponents argued that SVG--one of the few remaining and the largest of U.S.-owned advanced lithography firm--should remain under domestic ownership. They claim that loss of the leading-edge exposure technology would endanger future U.S. economic and national security.

The SVG Lithography unit is a significant partner in the Intel-backed Extreme Ultraviolet LLC consortium, which also involves support from other U.S. chip makers and U.S. national labs. ASML is already an associate partner in the EUV consortium, along with Munich-based Infineon Technologies AG. Congressional opponents criticized the membership of these foreign participants in the EUV program, but were unsuccessful in blocking their participation last year.

--Jack Robertson of EBN, a sister publication of Semiconductor Business News.