The transaction is one of the largest inbound acquisitions for Taiwan. It follows US memory chipmaker Micron Technology which is buying the remaining interest in its Taiwanese joint venture in a deal valued around $3.2 billion.

The ASML deal is the latest consolidation in a global semiconductor industry. Late last month, Taiwan's two biggest chip testing and packaging companies said they would come together under a new holding company.

ASML is the world's biggest chipmaking equipment supplier, with customers including TSMC, Intel and Samsung Electronics. HMI's technology is used to scan and test for wafer defects in the semiconductor manufacturing process.

Both companies already work together. The move means they can share research, development and intellectual property under one roof.ASML Chief Executive Peter Wenninck in a video posted on the company's website said:

"It paints a very complex landscape. The times of point solutions are gone. We need integrated solutions."

ASML's acquisition of HMI will be part-funded by about 1.5 billion euros ($1.69 billion) of debt, the two companies said. The deal will be completed in the fourth quarter of this year.